Sunday :: Apr 23, 2006

Care To Tell Them They Know Nothing About Economics?

by pessimist

Some of our wrong-wing wregulars like to think that they are economics experts, especially when they give us investment advice that is twenty-six years out of date, that tax cuts actually stimulate the economy, that deficits don't matter, and that the rising cost of gasoline isn't going to affect the economy.

Generally, I would respond with Male Bovine Excrement, but this time I have something better:

Soaring oil prices worry finance leaders
April 23, 2006

[O]il prices in the United States shot up to a record high of $75.17 a barrel. Prices at the pump also kept rising, with the average price of a gallon of unleaded regular gas at $2.855, up 3 cents from a day earlier and more than 60 cents higher than a year ago...

So far, the effect of lofty energy prices on the global economy has been moderate. There are worries, though, that energy prices could end up crimping economic activity and fanning inflation around the globe.

Finance officials from the world's leading industrial powers expressed concern Friday about zooming oil prices ...

"Oil prices remain high and buffeted by geopolitical developments," Treasury Secretary John Snow observed.

French Finance Minister Thierry Breton said the G-7 ministers, who spent much of the meeting talking about oil prices, wanted to "create a kind of cushion between supply and demand to allay, not shocks, but fear that there will not be enough supply and prices will take off."

Once prices take off, no amount of tax cutting will be able to reverse that trend. George's 'booming' economy will have gone bu$t - like everything else he's ever attempted.

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pessimist :: 7:57 PM :: Comments (13) :: TrackBack (0) :: Digg It!