As the “Arab Spring” spooks the market, and Obama’s economic, monetary and energy policies increase inflationary pressure, gas prices keep pushing upward, now well over $4/gallon in many places. So, rather than look in the mirror, President Obama has reached again for his dog-eared copy of Rules for Radicals and searched out a culprit to demonize. And the winner is … those bad “traders and speculators,” who, he suggested yesterday, could be “taking advantage of American consumers for their own short-term gains.”
In order to carry out this farce, he has directed his ever accommodating attorney general, Eric Holder, to head up a “task force” to “look into any cases of price gouging.” Thus, yet again, we have the Obama Justice Department putting the public’s law-enforcement power in the service of the White House’s political agenda — this time, deflecting blame.
There is no need for a task force on gas price gouging. The Federal Trade Commission already is a task force on gas price gouging. As the Congressional Research Service reported in 2007, the FTC has long been responsible for monitoring gas prices. In 2005, the Energy Policy Act tasked the commission to investigate whether gas prices were being “artificially manipulated by reducing refinery capacity or by any other form of market manipulation or price gouging practices.” Following Hurricane Katrina, the gouge-hunting mandate was further enhanced. And the extensive FTC scrutiny is separate and apart from investigative action in most states, which already have gas price-gouging laws.
What the president gave us yesterday was pure theater: Make a show of aggressively investigating a phantom — one that is already scrutinized to a fare thee well — in order to obscure the real problem: the president himself. It was Barack Obama who told us, back when he was a candidate, that he doesn’t have a problem with high gasoline prices and that they are caused not by “traders and speculators” but by increasing demand on a limited commodity supply — one that his policies adamantly refuse to allow us to replenish, let alone increase.
If Mr. Holder is looking for some real work to do, maybe he could start up a task force to prosecute Islamist organizations that have used charitable fronts to funnel money to Hamas and other Muslim terrorists. There seem to be a number of those cases wrapped up and ready to go — they’re just waiting for a Justice Department willing to do them.
When I read this on Drudge, I figured it has to be a link to a late night talk show monologue or skit. How does the president say these things with a straight face? He should have gone all out and put VP Biden in charge.
Reply to this commentLinkReport AbuseHow did it happen that gasoline went from about $2 a gallon in 2006, to $3 a gallon 2007 through 2008, to $3.60-4 for the summer of 2008 through the election, then fell to under $2 by the day of BHO's inauguration? Was the invisible hand of some leftist speculator trying to influence the US presidential election--say, a Mr George Soros--at work here? Has this aberration ever been investigated or explained?
External Link
Reply to this commentLinkReport AbuseAndy, I can do you one better: If Holder wants to do his job instead of participate in gasoline-prices dog-and-pony show with, in addition to looking into terror cells, why doesn't he finally start restoring people's faith in the rule of law (and in the notion that the government actually has our country's interests in mind) by enforcing immigration laws against illegal aliens?
If it's such difficult police work for him, I can think of about 1 million places for him to start: Pretty much anywhere I go to get food in while at work in Manhattan, anyone doing construction or landscaping where I live in Jersey, etc., etc.
Reply to this commentLinkReport AbuseSoon we will hear about oil tankers parked out of sight off shore waiting for the price to rise more. After all, he might as well use the full Carter playbook.
Reply to this commentLinkReport AbuseNow don't forget all those evil republican operatives that sneak out at night and take the gas straight out of your car's fuel tank.
Reply to this commentLinkReport AbuseThe investigation won't be about high gas costs, it will be about profits. Once that investigation is through and a few more oil executives are paraded through congress for show trial testimony, a blue ribbon panel will be appointed to figuring out how to keep the gas prices high while preventing the private sector from seeing a profit.
Reply to this commentLinkReport AbuseMr. Obama is counting on his media allies to promote the perception that gasoline prices only go up, never go down.
The problem Obama should have with this "investigation" is that his boogeymen don't really exist, except as a generic sneer at market forces. But this isn't about finding bad guys. It's about deflecting criticism of the administration.
How long before he directs Eric Holder to investigate rising corn prices?
The public hasn't been conditioned to hate Big Corn.
Yet.
Reply to this commentLinkReport AbuseLet's hope it turns out that CAIR and the Black Panthers are deeply involved in speculative trading of oil and gasoline futures ... that will ensure this ridiculous commission gets deep-sixed pronto.
Reply to this commentLinkReport Abuse"He should have gone all out and put VP Biden in charge."
Reply to this commentLinkReport AbuseAh, yes -- because "no one messes with Joe."
Two things I've noticed
1. Speculators are never the reason prices fall.
2. When the stock market falls, it's always 'profit takers', but when it rises, the 'loss takers' are nowhere to be found.
Reply to this commentLinkReport AbuseBill O'Reilly bangs the "traders and speculators" drum whenever he wants to play up his drunk guy at the end of the bar populist schtick. "Who's lookin' out for the folks?" Give me a break.
O'Bama doesn't surpise. He's always been a rank opportunist, but O'Reilly just keeps getting more and more embarrassing.
Reply to this commentLinkReport AbuseHasn't EVERY president done this at some point?
Is ANYONE fooled by this nonsense!?
1. "I will appoint a commission" = distraction & avoidance of "doing something about the issue" (or admission that "there is nothing I can do.")
2. "price rises are driven by evil speculators" = "I have no clue how markets work, and if you don't either then maybe you'll buy into my line of scapegoating"
3. "oil companies" = BOO!!!!!!
And didn't he just start ANOTHER deficit commission, run by Joe Biden?!?! (After ignoring the first one!)
The third time is FARCE, sheez! "Obama has named a commission" is a punchline to a sad joke.
PS - if I was a speculator, I'd sure be betting on higher oil prices as long as Obama is in charge. Because it's obvious he has no policy to lower them. Nifty little self-fulfilling prophecy, no?
Reply to this commentLinkReport AbuseJust today (4/22) in the Los Angeles area, I spent $45 for 11 gallons of gas (for a 13-gallon tank). Gas at $6 per gallon is said to be not impossible.
Upside: Gas at $10 per gallon would certainly empty out the freeways!
Supply and demand, people; supply and demand...
Reply to this commentLinkReport AbuseMaybe he should form a commission to determine when it is right to form a commission?
Reply to this commentLinkReport AbuseIf you're doing oil futures, in December you were bidding for delivery today, and today you're bidding for August delivery.
Anybody have any idea back in December that the Middle East would be imploding today? Certainly the US government didn't? Anybody think they've got a better handle on predicting what August will look like?
Maybe Obama can "reduce the deficit" by reintroducing Jimmy Carter's "Windfall Profits Tax" from the '70's.
Reply to this commentLinkReport AbuseThis post (and following comments) is an excellent assessment and succinct explanation of Obama's recent remarks- it should go viral, distribute it freely.
Reply to this commentLinkReport AbuseDon't forget that gas prices would go down if we started drilling more at home, and that the federal government's stubborn positions on shale drilling, deep-water drilling and ANWR are a major obstacle to this.
Reply to this commentLinkReport AbuseIt's amazing how those devious speculators have also managed to drive up prices for gold, and silver, and food ... disguising their fraud and abuse as if it were inflation!
[Disclaimer: this post is sarcastic]
Reply to this commentLinkReport AbuseGas price "gouging" is perfectly moral, when made as part of a voluntary trade. It's called supply and demand. If oil were $1000 a barrel and gasoline $40 a gallon it would still be moral.
The problem is the market is not free - and that is the fault of both political parties, both at the Federal and the State level.
Why should Alaska passively accept the Feds keeping ANWR closed? That land is in Alaska. Why should Louisiana permit the Feds to tell them they can't allow drilling in the waters of their coast? The States should simply go ahead and do it. With increased supply, the price will come down.
Reply to this commentLinkReport AbuseFor argument's sake, let's just say that a significant portion of the price of oil is due to speculation. If Obama wanted to destroy these speculators, he would immediately announce that he is expediting the permit process for Gulf drilling and say that all permits will be evaluated and approved within 15 days. Furthermore, he is instructing the EPA to drop all opposition to ANWR drilling which will also be expedited.
Whatever portion is a speculation "bubble" would disappear overnight and the speculators would be ruined.
Reply to this commentLinkReport Abuse