Obama & Bernanke-Not Speculators- Responsible For High Gas Prices
Knowing that many Americans are angry about the high prices of gasoline and other oil-derived products, the Obama administration is trying to blame it on "speculators".
Now, it is theoretically possible that speculation can raise gasoline prices, namely if they buy oil products and keep them away from the markets. However, this theoretical mechanism isn't applicable here. During the latest year, aggregate inventories of oil products (crude oil, gasoline, distillates) in the U.S. is in fact down by nearly 5%.
The reason for the high cost of gasoline can instead be found in Ben Bernanke's monetary policy and Obama's own Libya policy.
While blaming speculators for high gasoline prices may be more politically convenient for the Obama adminitration, it is nevertheless factually incorrect. Instead it is the Obama adminitration and its appointee Ben Bernanke that everyone angry about high gasoline prices should blame.
Now, it is theoretically possible that speculation can raise gasoline prices, namely if they buy oil products and keep them away from the markets. However, this theoretical mechanism isn't applicable here. During the latest year, aggregate inventories of oil products (crude oil, gasoline, distillates) in the U.S. is in fact down by nearly 5%.
The reason for the high cost of gasoline can instead be found in Ben Bernanke's monetary policy and Obama's own Libya policy.
While blaming speculators for high gasoline prices may be more politically convenient for the Obama adminitration, it is nevertheless factually incorrect. Instead it is the Obama adminitration and its appointee Ben Bernanke that everyone angry about high gasoline prices should blame.
posted by stefankarlsson at 11:38 PM
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