Capitol Hill Blue Forums Political Issues Finance, the economy & Economics House passes bill to sue OPEC over oil prices

So let me understand this: A country that prides itself on the capitalism model is sanctioning an organization for using capitalism (whatever price the market can bare) on America.

Whatdahhell?

Seems to me that Bush's war policies and foreign policies set the stage for exactly the predicament that the entire world is experiencing with gas and oil prices. Why not sue Bush?

But, how can OPEC be sued for "Free Market" commodity trading? OPEC...even if they raised oil production by 50%, what would prevent investors from continuing to speculate Future's markets? As long as market risks is making money for folks around the world...they are gonna continue to jump on oil futures like white on rice.

Oil may have been driven by suppy in demand at one time, but now, it'll be like gold. In my opinion, it won't matter how much oil is flowing. People will continue to play the futures game regardless.

Gold is a rare commodity, but if you notice, as oil prices go up and down, so does gold prices. But gold is a luxury item for most. Oil is a necessity.

More worthless ca ca from Congress to make the public feel good.

On Monday, April 24, 2006 Rep. Nancy Pelosi said, "“Democrats have a commonsense plan to help bring down skyrocketing gas prices by cracking down on price gouging, rolling back the billions of dollars in taxpayer subsidies, tax breaks and royalty relief given to big oil and gas companies, and increasing production of alternative fuels.”

How's that plan working out Nancy?

It's been said but I don't mind repeating it. As the Consumer Price Index does NOT include fuel or food the rising gas and food prices are NOT factored into inflation. It's why we aren't in a recession. Food and fuel are considered discretionary spending, not necessary but rather luxuries. This little government flim flam allows Washington to stand flat footed in the face of America and say, "We aren't in a recession. The worst is behind us."

Los Angeles Times

CPI is a complete joke! The Nixon Administration began to exclude fuel and food so that payouts to SS and Medicare wouldn't be affect by the rising cost of goods. Creative financing by your favorite federal government.

For all the above reasons, that is insane.

Perhaps European governments should sue the U.S. Government for not having as high tax rates on our fuel, and subsidizing our (multinational) oil companies, for the last 30 years or so... after all, the fact that we have paid less than 50% of what they have paid for fuel all this time surely violates Fair Trade agreements!

Makes about as much sense which is to say, none.

Actually, it is the "core inflation" rate that excludes energy and food prices -- not the CPI. by the way, the Federal Reserve no longer uses the CPI to gauge the severity or mildness of increased general prices as a result of government generated inflation -- it now uses the PCE. And if you are saying to yourself, "That is because the PCE is better at hiding the real inflation rate, giving pols better political cover, well, give yourself a cigar.:-)
Yours,
Issodhos

Here is the ironic part, california rick. Whenever we hear the squeals about the abuses of Big Oil and its supposedly "non-competitive" actions and market evil-doings, the name that is almost always shreiked by the usual suspects is Exxon -- an American company, privately owned.

Yet, most of the oil in the world is controlled by state-owned companies. We rarely, if ever, hear anger directed at the nationalized or state-controlled oil industries of Mexico, Venesuela, Russia, Saudi Arabia, Iran, Iraq, etc.

Do you suspect there may be a political motive behind it?;-)
Yours,
Issodhos