Posted on 04/18/2006 8:09:46 AM PDT by ex-Texan
WASHINGTON (Reuters) - President George W. Bush said on Tuesday he is "concerned" about high gasoline prices, and pledged that the U.S. government will keep a close watch out for profiteering.
"I'm concerned about higher gasoline prices," Bush said at a Rose Garden news conference to name new staff appointments.
"The government has the responsibility to make sure that we watch very carefully and investigate possible price-gouging, and we will do just that," Bush said in unprompted remarks about energy prices.
U.S. crude oil futures hit a record of $70.88 a barrel on Tuesday on fears of supply disruptions in Iran stemming from its nuclear standoff with the West, as well as lingering outages in Nigeria.
U.S. retail gasoline prices rose 10 cents last week to average $2.78 a gallon, up 29 cents over the last three weeks and 55 cents higher than a year ago, the government said on Monday.
Bush said high crude oil prices, rising summer driving demand and a switch to new motor gasoline standards is keeping gasoline prices high.
"It's tight supply worldwide and we've got increasing demand from countries like India and China, which means that any disruption of supply ... (is) going to cause the price of crude to go up," Bush said.
More drivers will take to the road this summer, which will also boost demand, he said.
"At this time of year people are beginning to drive more, getting out on the highways, taking a little time off," Bush said. "That increasing demand is also part of the reason the price of gasoline is going up."
If Bush would be a true, conservative Republican, we wouldn't constructively criticize him so.
"Doesn't matter, as long as they ACT in the manner of a monopolist."
By that token, a free efficient market is nothing more than "many monopolists".
What really matters - in this case and in many others - is impediment to entry. That's what stops you and I from opening our own oil company to get our piece of this supposed windfall.
Naturally, capital intesive businesses such as oil present substantials impediment to entry. However with billions available in the marketplace (look at google's capitalization, etc...) how bad is that impediment reazlly?
So why don't some of these over capitalized companies get into oil? The answer, it really isn't all that profitable compard to what they're already doing.
Last year at this time regular gasoline was about $1.65 at the pump. This year from $2.75 to over $3.00. Is this the result of world wide demand going up that much, or was gasoline greatly underpriced at this time last year, or is this the result of gasoline and crude oil speculators?
I love the economic ignorance of these whiners. Exxon Mobil has net income of less than 10% of sales. Any half respectable monopolist who be embarrassed at weak ass profits like that. A real monopolist would be making 30% or more. LOL!!
Huh? I LIVE in Columbia (all my life) and I've never had "sell-out"! Where did you go? And do you mean 1 grade or ALL? What lines have you seen waiting?
BTW, if it was sold-out - that means perhaps demand indeed is exceeding supply?
As for you comment about monopoly - a) how many companies are there? "Mono" means "1" in Latin. I see Exxon, Shell, BP.....and some of those aren't even American.
Who is the monopolist? Is there only 1 prince in Saudi Arabia who actually supplies the crude oil (even that I doubt)? THAT may be a monopoly, but we can hardly control anything that happens outside our borders.
I prefer chocolate ice cream. But vanilla exists, surely you have heard of it?
All of his posts were expunged so he must have done something extraordinary. He is officially a nonexistent person! LOL
What happened to Iowa Professor? All his posts to me are gone?
It looks like he has been sent to posting oblivion. Reason unknown,,,by me anyway.
Kinda like a virtual death squad at work,,,,"he was never seen again".
Well he had only been a Freeper for a short time. And I thought I detected a little bit of du in his posts. I guess the combo got him........
Odd. All of his posts on the entire forum have apparently been deleted. I rather enjoyed my conversation with him here. I wonder what happened?
So you believe in totalitarian government?
How do you feel when the government says they are taking your property and giving it to a developer because it will generate more tax revenue that way?
Or is it only the rights of other peoples that you hold in contempt?
Evidently you think that this is the first time in history that gas prices have gone up.
Remember Jimmah Carter? During the Carter Era of Malaise, gas was taking a MUCH larger chunk of per capita income than it is now.
Where did you get you're degree in whining? Moscow?
The term "fascism" is thrown around with complete abandon these days, but in this particular case your remedy fits the exact Merriam-Webster Dictionary definition.
Don't be ridiculous. Hydrocarbon costs will have an economic impact, and its delusional to think otherwise. And a substantial part of the reason that hydrocarbon costs have a direct economic impact is the current unavailability of viable alternatives (whether in manufacturing or combustion).
The issue is whether that economic impact will be large enough to instigate a price-fixing political movement. Of course, I think that capping hydrocarbon prices would be entirely counter-productive. But if a short term price swing of sufficient magnitude causes an inability to acquire goods or use already purchased transportation at acceptable costs (with "acceptable costs" being, of course, the ghost in the machine), then you can expect to see just such a political movement.
Where did you get you're degree in whining? Moscow?
Oh brother. How old are you?
By that token, a free efficient market is nothing more than "many monopolists".
First, I went to the Exxon at the corner of Minstrel Way and Snowden River. (red plastic bags over all the pump handles)
Second, went to the Mobil station next to the Wal-Mart at Dobbin Way and MD-175... again, red plastic bags over all the pump handles.
Finally, I found gas at the BP station in the Harper's Farm shopping center... at $2.89/gallon.
But doesn't market forces dictate the when demand is high and supply low... that new supplies are brought to the market?
Ergo, any free marketeer would be building refineries to increase gasoline supplies anyway. So ordering them to do what they are already doing is a moot point.
This would only affect those companies that are not following free market principles. (and charging whatever the market can bear is not a trait of the free market; Adam Smith proved that a long time ago)
And the last thing we need in a free market are those who disdain it. This would simply ensure that all the players in the oil market are following the economic principles of which our great nation was founded upon.
Amazing...
Simply enforcing free market principles in a free market economy is fascism to you.
LOL!!!
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