Robert Reich is Short…

…with the truth.

Smitty at The Other McCain posts:

They Told Me If I Voted For McCain, Politicized Economists Would Engage In Class Warfare Instead Of Speaking Truth To Power, And They Were Right!

Robert Reich:

But the rise in gas prices has almost nothing to do with energy policy. It has everything to do with America’s continuing failure to adequately regulate Wall Street. But don’t hold your breath waiting for Republicans to tell the truth.
As I’ve noted before, oil supplies aren’t being squeezed. Over 80 percent of America’s energy needs are now being satisfied by domestic supplies. In fact, we’re starting to become an energy exporter. Demand for oil isn’t rising in any event. Demand is down in the U.S. compared to last year at this time, and global demand is still moderate given the economic slowdowns in Europe and China.

Regulation! It’s what’s for breakfast! Seriously, one wonders what this jackwagon would consider too much regulation. Regulation is the salvation of the #Occupation, I suppose.

To which I noted in the comments:

Former Shell Oil President John Hofmeister predicted that the U.S. won’t have enough oil to fill gas tanks whatever the price and that high gas prices could lead to another recession, because people won’t be able to buy things.

The host of “Washington Journal” asked Hofmeister if he agreed with the head of ExxonMobil, Rex Tillerson, that the U.S. won’t see $5 a gallon gas and that the rhetoric over Iran is responsible for driving up gas prices temporarily.

“There’s a lot of views out there, and I’ve been articulating a $5 price. Where he is perhaps more correct than I am is our U.S. economy will start to falter and could even go back into recession as we get to $5. I’m deliberately being an alarmist. I know that, because I am fearful that the American people are being so misserved by the political class in this country – and as I said, both Republicans and Democrats – that something has got to be done,” he said.

Hofmeister predicted that Americans won’t have enough oil to fill their gas tanks no matter the price, which will lead to another recession.

“We’re not going to have enough oil to fill the tanks everyday of consumers at whatever price it might be, so Rex may be correct in the course of the next several months that the economy could falter because people don’t have the money to both buy clothes and books and food and medicine, because they have to get to work every day, and the higher priced gasoline courtesy of the American government is causing people to choose to not buy things,” he said.

“That’s what will take the country back to recession. That’s what will cause higher unemployment, and the sooner we get a plan for energy, the better off every American will be,” Hofmeister added.

Via CNSNews.

Smitty also makes the same point that I have about the weak dollar driving the price up.

How about something akin to a real-world answer, from last year about this time?

An analysis produced by the Republican staff of Congress’ Joint Economic Committee blames the falling value of the dollar and the Fed’s quantitative easing policy for inflating the price of oil, and therefore the price of gasoline.
The report explains that while many factors contribute to the market price of oil, one is the value of the “unit of exchange” – the currency in which barrels of oil are traded.
“Oil is an international commodity that trades in dollars,” the report states. “The value of the unit of exchange, in this case the dollar, plays an important role in determining the ‘headline’ price for the underlying commodity.”

In summary, if “Zimbabwe” Ben Bernanke was not excreting a blizzard of currency from wherever, oil prices wouldn’t be, you know, inflated. Alternately, one wonders what the price would be if our government wasn’t systematically abusing the money supply. Economics, Reich: would you know it if it slapped you upside the head?

One thought on “Robert Reich is Short…

  1. Gosh, I believe there’s been a candidate talkin about this… Hmm….who could it be? Who could it be? (in Church Lady voice) Could it be…….. RON PAUL?

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