US Attempts crack down on oil speculators

June 18th, 2008 by Eric Cope

The BBC News has a post regarding how Government Regulation will help keep oil prices down. It then goes on to describe how the US economy is “inextricably linked to the viability of its air transportation system.” That’s liberal speak for every US citizen needs (not wants) things delivered by air, including travelers and bananas.  But wait a minute… Do we need to travel by air? Oh… that’s right! we bombed all interstate roads yesterday. What was I thinking? Do we need goods by air? I forgot that if I did not get my next-day bananas, that my cancer would come back the following day and kill me immediately.

If this is not special interest group pandering, I don’t know what is.  While lower prices might be nice (a luxury), they are not a necessity.  I like how they say that additional government regulation will create more transparency. That is as funny as the movie, Dumb and Dumber, except that that statement is Dumbest. If someone could find a government agency, that kept prices down (after including the tax payer’s cost) in a legitimate manner, I will buy you a car.

The only true way to reduce the cost of gas is to:

  • reduce the demand for gasoline – walk, run, carpool, take the bus
  • increase the supply of gasoline – no, corn-based ethanol is not a viable replacement. Oil Shale in Colorado is (tell the hippies to get out of the way).
  • reduce the taxes imposed on gasoline, which ranges between 25-75 cents per gallon.
  • reduce government regulation of oil industry – This will allow new companies to enter the market with new innovative ways of drilling, processing, and delivering oil at a lower price. It will also lower taxes.

If you think speculators are driving up the price of gas, perhaps you should get in on that action.

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