Why are fuel prices so high? Too Much Government - Ron Paul

Ron Paul on high fuel prices:

In the past few months, American workers, consumers, and businesses have experienced a sudden and dramatic rise in gasoline prices. In some parts of the country, gasoline costs as much as $4 per gallon. Some politicians claim that the way to reduce gas prices is by expanding the government’s power to regulate prices and control the supply of gasoline. For example, the House of Representatives has even passed legislation subjecting gas stations owners to criminal penalties if they charge more than a federal bureaucrat deems appropriate. Proponents of these measures must have forgotten the 1970s, when government controls on the oil industry resulted in gas lines and shortages. It was only after President Reagan lifted federal price controls that the gas lines disappeared.

Instead of imposing further restraints on the market, Congress should consider reforming the federal policies that raise gas prices. For example, federal and state taxes can account for as much as a third of what consumers’ pay at the pump. The Federal Government’s boom-and-bust monetary policy also makes consumers vulnerable to inflation and to constant fluctuations in the prices of essential goods such as oil. It is no coincidence that oil prices first became an issue shortly after President Nixon unilaterally severed the dollar’s last link to gold.

Basic economics says that when government restricts the supply of a good, the price will increase. Yet Congress continues to reject simple measures that could increase the supply of oil. For example, Congress refuses to allow reasonable, environmentally sensitive, offshore drilling. Congress also refuses to remove the numerous regulatory hurdles that add to the prohibitively expensive task of constructing new refineries. Building a new refinery requires billions of dollars in capital investment. It can take several years just to obtain the necessary federal permits. Even after the permits are obtained, construction of a refinery may still be delayed or even halted by frivolous lawsuits. It is no wonder that there has not been a new refinery constructed in the United States since 1976.

Oil at $180 = Gas at $5.50 ?

Why oil could hit $180 a barrel - MSN Money via kwout

In the “more dire predictions” category, Jim Juback from MSN (moneycentral.msn.com) thinks oil will continue its price rise. He sites geology and geopolitics. I often read his columns and they are quite good on the whole.

He omitted what I believe to be the major cause of this, and other, inflation. Government central banks producing huge quantities of fiat currency.

Japan, the World’s Richest Country, is Running Out of Food ?!?

From theage.com

“While soaring food prices have triggered rioting among the starving millions of the third world, in wealthy Japan they have forced a pampered population to contemplate the shocking possibility of a long-term — perhaps permanent — reduction in the quality and quantity of its food.”

Hard to believe that the rich are worried about their food supply. Why? Because they rely on imports. We all know the folly of depending on imports for oil. Food appears to be another vulnerability.

Perhaps we will realize that globalization of trade is going to pauperize all of us, except the 2 or 3% at the top of the economic pyramid. I don’t hear our Presidential wannabes proposing solutions, do you?

Anther Church Raided by Feds, Waco II Anyone?

Armored officers, personnel carrier led raid on ranch via kwout

Anyone remember Waco? Looks like our Federal overlords are raiding churches again. I am no fan of the polygamous sect, but I am a major fan of the Bill of Rights - including freedom of religion.

Obama Hates Me!! And Likely You Too!

Obama under fire after fundraiser remarks - Yahoo! News via kwout

The articulate, smooth, smart one slipped up and spoke his true feelings at a fundraiser. He must have thought only the rich, extreme left wing was listening. Obama disparaged the middle class, people to whom religion is important, and gun owners. He hates us!! Well, I don’t exactly love him, either. But I don’t lie about it.

This is an example of hate speech that the hard left is often whining about. One of their own did it, let’s see who, besides Hillary, calls him in it. Or do the rules apply only to conservatives and Christians?

Imaging what he would have said if he believed only nonwhites were listening? Kill the white people, maybe? If only Muslims were listening? Jihad.