The Fed is running the economy right now, and no one in either party is willing to challenge the incompetent and dangerous Bernanke.
Oil is rising because Bernanke is persisting in his interest rate cuts, which cannot spur us out of recession and which are simply destroying the value of the dollar.
When the Fed cuts interest rates, the dollar falls in value against other currencies, and since oil is priced (internationally) in dollars, Bernanke's rate policy is increasing oil prices (and import prices) and is destroying consumers. His policy may very well be making the recession even worse.
Bernanke testified in Congress last week or the week before. No member challenged his (and Bushco's) bailout of Bear Stearns, which some experts doubt was within the actual authorized, legal powers of the Fed. Nor did they challenge the extension of US government lending to unregulated Wall Street investment banks, some of which may actually be insolvent absent such no-questions-asked overnight Fed loans. Nor did they question the Fed's taking on of billions of worthless mortgage backed securities (which the banks can't unload on the market) as "collateral".
So the Congress has decided to let the Fed run wild, without oversight, and let Bernanke make every crucial decision and actually spend taxpayer money without actual appropriation from Congress. This is very dangerous--unconstitutional in fact---and no one cares.
Posted by euzoius at April 14, 2008 11:16 AMWow, such "leadership". She fobbed it off on the FTC last year and is blaming them because nothing was done. Color me less than impressed.
Yeah, it's better than nothing, but calling CYA "leadership" is a bit much.
Posted by Tim H. at April 14, 2008 11:16 AMThe oil companies are making a killing and will continue to do so for the forseeable future, but it's not because of market manipulation. The world can't increase the oil supply while global demand is increasing. That means higher prices happen to reduce demand. Combine that with a falling dollar and you have an ugly mess.
Elected officials have to make it look like they're trying to address high prices, but the cause of the problem is the short-sightedness of our elected officials over the last 30 years in not doing something to reduce our dependence on oil. Now, we're just screwed.
Posted by CA Pol Junkie at April 14, 2008 11:17 AMExactly, CApj.
We wasted uncounted barrels of irreplaceable oil during the global glut of 1985-2002. SUVs, monster pick-ups, endless air travel, 100 mile/day "commutes" to far flung, newly created bedroom suburbs.
We basically poured the precious fuel out onto the ground, all so gas guzzling yahoos could be allowed to do whatever they wanted with their crappy "lifestyles" and wealthy "developers" could make even more under the housing bubble.
Utter insanity, complete abdication of responsibility (and yes, there was a certain Dem president who looked the other way as well). All just gas under the bridge.
Now the chickens are coming home to roost and Gas-Guzzlin' Nation of Morons is well and truly screwed. What we can do is anyone's guess. Live 50 miles (or more) from where you work? Drive a gas guzzler? Better start figuring what the fuck to do, and pronto.
One "old-style" step the gub'mint could take is to simply regulate the oil companies like utilities and determine their quarterly prices and profit margins. We could then steadily raise the price of gas, and give most of the "profits" to the government for mass tranist and other energy policies, while not allowing BigOil to simply rake in obscene profits resulting from the inevitable price rises.
Under Peak Oil, there is no "risk" to selling oil/gas anymore---it can't miss. So BigOil doesn't "deserve" its windfall profits.
Posted by euzoius at April 14, 2008 11:37 AMMy My! What drivel you speak Ezzie.
Posted by jj at April 14, 2008 02:08 PMWith the dollar's value where it is, 70.05 Euros is cheap for a barrel of crude. 56 Pounds is also cheap. 110.80 Swiss Francs is cheap too. Go look elsewhere.
Posted by peter at April 14, 2008 02:29 PMMs. Cantwell is presumably interested because with oil at these levels Boeing has a much less sunny future. You can be sure the destructive children of Wall St. are involved here.
Posted by bob h at April 14, 2008 02:45 PMOil markets being manipulated? yeah, it's called OPEC
Posted by gandalf at April 14, 2008 05:19 PMright, gandalf. it's all opec's fault. which explains those record exxon profits. or something.
Posted by Turkana at April 14, 2008 05:24 PM