Sunday, May 18, 2008

Bush can ride down an oil-slide to Hell

President Bush has "successfully" negotiated an increase in oil production from the Saudi's. Wow, as if the amount of available oil actually had anything to do with the prices right now. If we removed all forms of investment from the oil industry, and left the supply and demand to actual oil consumption, prices wouldn't be nearly as high, nor would they fluctuate as often. Since the start of the Iraq War in 2003, the cost of oil has risen from around $20 a barrel to near $130. Has the demand and use of oil risen by more than 6 times in the last 5 years? Not even close. But because investors control the prices through financial markets, they can use any event they want to justify price changes, making money out of thin air for themselves, while most people get screwed at the pump. To top it off, many of the American companies that benefit most from the price increases are closely connected to the Bush administration, and will be more than willing to provide huge stock option plans when Bush and Cheney "kindly" offer their advice as directors. Gee, it sure is a shame that those stocks will be worth so much because of foreign policy conduct over the last 8 years that has given the market an excuse to manipulate prices. I can see Bush and Cheney donating all of the profit from their stocks to enviromental projects, or using their wealth to open up non-profit health care clinics in inner-city ghetto's where health conditions can resemble the third world. Next time there is an incident of violence somewhere in the world, look for the Wall Street Journal to report that scared investors have changed their trading strategies with crude oil, leading to another price increase. Did a bomb that killed 20 people in a market actually do anything to affect oil production or use? No, and the fact that violent chaotic things happen everyday in oil producing nations has always been, and always will be the case. Hopefully our next President can be more concerned about bettering our country and the world, as less concerned with satisfying investors.

3 comments:

Jen said...

This is Pax, nice blog tito. You educate me in so many ways. Politics and Basketball, now those are two random topics that you know a heck of a lot about. Later!

Jamie and Edgar said...

Just because you are fun to debate with...I am really annoyed with Hilary insisting on taking away the profits of the oil companies. That is only going to be passed down to us at the pumps, a profit has to be made somewhere (even the big oil companies deserve to earn a profit). And also it seems that demand has skyrocketed because of China and Egypt coming online. This in my opinion is one of the reasons gas is so expensive.

Anonymous said...

Well written article.