Saturday, July 12, 2008

The solution to oil prices is right under your nose

The only problem is that the Fed's cheerleaders are making you look in hiding places rather than down.
On Fox a few minutes ago the panel was talking about, surprise, how to make gas more affordable. Do we attack supply or demand? Do we drill offshore? Do we drill in the shale? So we open our reserves (which is going to be the death of everthing we love. I'll explain in a later post)?
Of course, they never bring up the real problems. The main one is inflation. No one wants to entertain the idea since it's Mad Ben Bernanke's fault and there's almost nothing anyone can do. No, instead of identifying the problem, they want to be gods and be able to do something. They could, but it won't amount to much as long as the Federal Reserve is still around.
The rebate checks we all loved are a big part of the problem. We want things now, but most people didn't see what they couldn't-it fixes things now, but makes it worse in the long run.
There is a secondary problem. Our import from Canada is very impure. It takes a lot to refine it into useable fuel, which costs even more money. So Conservatives and Liberals both want more domestic and "non-terrorist" (read non ay-rab) oil. Where do they get it? Well, here, and Canada. I'm betting the government is going to give oil companies money to drill here. So no matter what, money will be wasted because we can't give those muslims our precious, sacred money.
And yet the blame is falling on speculators and the very Arabs I think we should trade with more.
Neo-Mercantilism, here we come!

Edit: The point of this post was basically "Not much can be done about inflation, so enjoy the ride and hope the government trades with 'our enemies'".

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