May 29, 2007

Culver, other governors ask president, Congress to address gas prices

As the pumped clicked past Fifty dollars for the Ram Tough, Dodge 4X4, climate heating heathen I was thinking "By God somebody needs to do something, this is craziness."

Fortunately for me Iowa has newly elected Governor Chet "Ethanol" Culver at the helm, who ran on a platform of oil independence for the state (Not exactly sure how he is going to do that unless some wildcatter brings in a well in Bel Plain), but Chet has joined 21 other Governors in the 34th annual "Price gouging investigation." to show that they are serious about protecting the weak and downtrodden. They have fired off a natty little letter to congress demanding that somebody, anybody, get to the bottom of this craziness. Go Chet!

The pump finally tripped off at seventy two bucks, and I fired up that thirsty, rumbling 318 and quickly regained my senses. Hoping that Chet, congress, or anyone can interfere in the market and artificially control the price at the pump without far reaching repercussions is just craziness.

    So you reply....
  • But the industry is a monopoly and that's not fair! Buck up little camper life's not fair, but the oil bidness is technically a oligopoly. Unless there is collusion between the limited number of sellers, which has to date not been proven, the sellers are only selling at what the market is willing to pay. When enough quit paying they'll lower their prices. The invisible hand of capitalism at work, ain't it cool.
  • But Senator Clinton says she is going to take the profits and make us oil independent! Wake up damn it!!! The big hairy hand of Socialism always looks like the easy way out but just ask the folks in Venezuela how that's working for them.
  • But Dick and his buddies are making obscene profits! Hmmm your right, but isn't that what corporations are expected to do? Buy yourself some stock in BP and realize that getting that stuff from the underworld to the tank is not a cheap proposition. One gulf oil platform costs in the neighborhood of $250,000,000.
  • But I just don't get it! Of course you don't my friend, so for a quick primer on oil and its prices link here. Got to run I left the Power Ram idling in the driveway.

No comments: