Gas prices are going up again.

NOTE: I wrote this post a couple of weeks ago, and then left it as a draft because I figured it would turn into another battle about AGW. However, the predictions I was making then seem to have born fruit, so I decided it was time to actually post it, focusing on the fact that this policy failed miserably.

Obama’s team, suddenly realizing that their belief expensive gas was awesome and a needed thing for the nation was not shared by the majority of people getting hammered by high gas prices, recently decide to open up the Strategic Reserve to try and stem the flood. Many, like me, where baffled by this move. Doing this now was way to early to affect any meaningful change to gas prices in anything but the immediate short term, and there was no way to release enough to carry that effect into the 2012 elections. More incomprehensible was the fact that they missed the point that it was almost a given this move guaranteed that they would cause an increase prices in the long term. Sooner than later they would have to replenish any oil released, and that massive demand against the same amount of resources, was only going to drive price up. This desperate and ridiculous move was sold as a big win, under the guise that the administration was broadcasting that it could do this at any time, thus hurting speculators badly, but to me it simply seemed to follow the same pattern of insanity that has been part & parcel of these people.

The left of course reported this as a brilliant move, as NPR did, while those that live in the real world and understand the basic principles of economics or what the Strategic Reserve’s function is supposed to be, pointed out this was for what it was. Some even predicted the short term drastic drop that would then quickly be followed by even bigger increases as the Jutia Group did here. And as they predicted, the prices dropped about $9 dollars a few days ago, but today started jumping up bigtime as the traders adjusted to the reality that this move wasn’t going to have much more than a brief impact on supply and was nothing more than a political ploy.

Those drops we saw in gas prices are not going to last too long it seems. That relief we just got at the pump doesn’t look like it is going to last too much longer. Hope you didbn’t change your traveling plan or budget, because high prices are soon to be back.

The above was my prediction over 2 weeks ago. It looks like I was right predicting that this stunt was going to fail miserably

Comments are closed.

  1. InsipiD

    Sounds about right. It wasn’t an emergency, prices weren’t that bad, and it did nothing to permanently fix the problem.

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  2. AlexInCT *

    Sounds about right. It wasn’t an emergency, prices weren’t that bad, and it did nothing to permanently fix the problem.

    It didn’t even fix the problem they where really trying to address: his poll numbers.

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  3. Seattle Outcast

    that the administration was broadcasting that it could do this at any time, thus hurting speculators badly

    Which shows that these people don’t actually understand how it works. For all the claims about how smart Obama & Co are, they sure make a lot of boneheaded moves….

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  4. hist_ed

    thus hurting speculators badly

    This justification shows all you need to know about Obama’s economics. Market forces don’t set prices you see, it’s those EEEVVVIIIIIILLL speculators. Spexulators’ purchases are just market signals. If they get it wrong, the governmetn doesn’t need to punish them because the markets will. I’ve had this argument with seemingly rational people that just don’t get it. There are a lot ofpeople out there who actually think that if you just clamp down on speculators that gas prices will magically settle down. Growing demand and stagnant supply be damned, its theem evil investors.

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  5. AlexInCT *

    There are a lot ofpeople out there who actually think that if you just clamp down on speculators that gas prices will magically settle down.

    I bet these are also the same people that feel if you fleece those evil rich people you can then give them everything they want for free, forever. Reality-challenged isn’t the best way to go through life.

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  6. Mississippi Yankee

    Which shows that these people don’t actually understand how it works. For all the claims about how smart Obama & Co are, they sure make a lot of boneheaded moves….

    I think this is a trap that we all fall into much too easily. Obama & Co have, in the past 2 1/2 years, caused more financial harm to this country than his 43 predecessors combined. Even spupid people aren’t that consistent.

    Today I received a call from National Review (of course it was for donations) but the nice lady said she only wanted to ask me one question:
    Do you believe the harm this administration is is causing this country is being done intentionally?

    That’s a pretty loaded question for a old and well established national magazine don’t you think?
    They are promising some damaging reports and related articles in the later part of the summer. I have no reason to doubt they will inflict damage, how much is the question.

    Oh, although they didn’t mention it if any of y’all are not antiquated with the Clower Piven Strategy you might want to take a look. I’ve alway called it Anarchy for Swells. I just don’t think any of what we’re seeing is happening in a vacuum.

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  7. Seattle Outcast

    Do you believe the harm this administration is is causing this country is being done intentionally?

    The rub is that they don’t perceive what they’re doing as “harm”. Remember when these assholes said that they were going to “fundamentally reshape America”? What they meant was “we’re going to save you ignorant inbred clusterfucks from yourselves by forcing all the stuff we think is good for you down your throat.”

    As I said, they don’t understand how it actually all works, but they have a lot of trendy progressive BS that they “know” will work if we just give them a blank check to implement. For example, they are true believers in Keynesian spending, universal health care, taxing the rich to pay for everything, the unlimited power of unions, and all things “green”. That these things work or are desperately needed is a matter of faith to them

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  8. hist_ed

    I think that Obama is really surprised. He did everything his Ivy leagues buddies said he should. They got the entire liberal playbook for two years. It was supposed to work (Paul Krugman said it would). Now that it hasn’t, there is no way that they will think “Hmmm, gues this shit doesn’t work.” No no, it is the evil peoiple who subverted it. Or maybe they just didn’t spend enough. Or maybe it is just taking a little longer. He really is getting a liitle bit of the deer in the headlights vibe.

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