More Proof that Oil/Gas Prices are Inflated

Okay. For any other industry, for any other product sold and distributed worldwide, this news would mean a significant decline in prices. However, the oil and gas industry is allowed to ignore all tangible facts before them and "speculate" themselves to higher prices and therefore, higher profits. The normal rules of supply and demand do not matter.

Check the news today:

SUPPLY
Saudi Arabia announces it will increase production by 200,000 barrells per day.

DEMAND
Americans drove 4.5 billion miles fewer in April.

Significant amounts of supply is being added to a market with significantly less demand. Again, in any other industry and with any other product; according to basic economic principles, this would cause lower prices.

Don't hold your breath.

Tanker Deal Back in Play

You know, this story has infuriated me since it came out. People wonder what's happening to good American jobs and question why the dollar keeps losing value against foreign currency. Then, we attempt to award a foreign company a $35 billion dollar Air Force contract that may grow up to $100 billion.

Seriously. Are these folks really this stupid? Do they honestly wonder what's happening to our jobs and why the euro is outperforming the dollar when we send $100 billion dollars of U.S. taxpayer money to Europe? Estimates show that if award this contract to a domestic supplier, we could add almost 44 THOUSAND new jobs.

Now, they say that Americans will benefit because some new jobs will be created in the South. But given our current economic conditions, shouldn't we decide to keep these "in house"?

Olbermann's Research into Gas Prices

Thanks to the guys over at Crooks and Liars, I ran across this gem. This is probably the most detailed and comprehensive take on the gas and oil prices that I've seen. It echoes much of what I've said already. However, Keith has been able to provide the gap in why things are much different now than a few years ago.

A powerful lobby, a few pieces of bad legislation and a cooperative administration makes for a "perfect storm" of anti-capitalistic practices and the highest energy prices the world has ever experienced.

Another good point articulated here is that alternative energies will not help us at all until we rid ourselves of the speculators that have selfishly and severely harmed our country's economy. They'll simply "speculate" with the other energies to artificially drive up the price.

War on Terror Update for Thursday

I'd be the first to agree that removing Saddam from power is good for the world. It helps remove a tryrannical dictator and installs democracy. However, we now know that he had no associations with Al-Qaida. But, what he did have was plenty of oil that he wouldn't allow Western countries to access for almost 40 years. We removed that troublesome Saddam, now the oil companies can slime their way back into Iraq. This time they have no-bid contracts. I'm sure that Bush and his oil cronies had nothing to do with this decision. Oil was the last thing on their mind when they went to war with Iraq. Yeah right. Doesn't matter, the oil companies still say there are supply problems. They must raise prices!! They'll rake in more crazy profits. We'll still pay more at the pump.

Two-star Army general accuses the White House of authorizing "systematic and illegal" torture practices in Abu Ghraib. Wonder what he would say about our secret prison ships, or the people that we hid from the Red Cross when they were checking out our conditions. History will not judge this very nicely.

More mis-management of our nuclear arsenal. The Pentagon says that over 1,000 critical nuclear components are missing.

Ahmadinejad says he won the standoff over his nukes. Given the fact that Kim Jun Ill has yet to verify that he stopped his nuclear program, that would make us 1 for 3 against the Axis of Evil. Good stats for baseball. Bad stats for the prevention of nuclear chaos.