Is Oil A Problem Or Not?

BRENT CRUDE FUTR (USD/bbl.)
PRICE 139.830
CHANGE -0.480
%CHANGE -0.34

Have you heard the latest dramatic action that president Bush is taking to get oil prices under control?

Me neither.

The Bushes are self proclaimed "oil men" who have been sucking up to the Saudis and other oil giants for generations, so you would imagine that they would at least be able to call some kind of summit meeting for all of the big players to discuss what's happening. But nothing.

Not a word.

Perhaps I am mistaken, but I am under the impression that the tripling of oil prices is a world-wide economic catastrophe that could lead to a near global depression. Yes? No? Maybe?

Is anybody in our government paying attention? Well, apparently that task has fallen to Treasury Secretary Hank Paulson. Let's see what he's doing . . .

Monitoring Market Conditions

Courtesy of Bloomberg June 24, 2008 -

Paulson also repeated his view that high oil prices are a symptom of tight supplies, rather than a trend driven by financial speculators. ``I just think it's important that when you see a fundamental issue, that you don't get diverted with an issue that is not a key driver and is not central to the problem,'' Paulson said. When asked about the role of speculators, Paulson stuck by his insistence that it is not a big factor in current market conditions. ``I've seen no evidence that it is a major factor. And I've seen a lot of evidence that there's a supply-demand issue, and inventories are becoming tighter,'' Paulson said, adding that U.S. officials will continue to monitor market conditions.

Well, OK, I guess. But should something more be happening? For some reason, I personally am way more worried about oil prices that I am about Al Quaeda blowing me up, or Iran building nuclear power plants (actually seems kind of smart), or whether Mitt Romney will get to lose another election this year, or who's doping up at the Olympics.

I've had three of my clients go out of business this year. And I don't have a lot of clients. Our economy is about to go into the tank, and it already has for a lot of people. Meanwhile, folks in Dubai are skiing indoors. That's great for them. But it seems to signal a big shift in wealth. We say good bye, they say hello. Let's make it not so big.

George should at least call a big meeting to discuss it. He's done nothing! Instead I'm only hearing about what McCain or Obama will try to do about it next year. What about this year? Will somebody please go into the oval office and slap that fool awake!

Remember all that bullshit talk justifying the Iraq War II about oil being the fuel for the "engine of democracy" and so strategically we could not allow ourselves to be blackmailed with it? Well, guess what? We're not being blackmailed. We're being robbed.

Let's get it together here. The sellers should not have this kind of pricing power. We have other cards to play here besides just stupidly bidding our dollars away. Please tell me we are smarter than this. We, meaning you and I, can start by letting own pols know that we demand some action. And we don't mean invading Iran.