Smoke and mirrors?
President Obama today raised the ante on his efforts to limit the rise in oil prices. The president, joined by Treasury Secretary Tim Geithner and Attorney General Eric Holder, called on Congress to adopt tougher rules on speculators in the oil market.
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The Daily Ticker’s Henry Blodget says the proposal is “embarrassing” because speculators have little to do with the rising price of oil and gasoline. Prices are moving higher, Henry says, because “three billion new capitalists” in India and China are consuming oil and gasoline. It’s the balance between supply and demand that determines whether oil prices rise or fall, not speculators, Henry argues.
And then, of course, there are the Obama administration’s own policies which, by limiting exploration, have made it difficult to increase supply to match increasing demand. If the president were serious about reducing oil prices, he would eliminate federal regulations preventing exploration and expedite the approval process for drilling on federal lands.
Seems that for this president, the solution to every problem is tougher federal oversight when, in many case, it’s federal meddling which created (or exacerbated) the problem in the first place.
And this time for a change, some in the media are catching on.