Obama Confronts Gas Prices With Big Government & More Spending

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Obama needs $52 million of your tax money to save you money at the pump. He plans to ask Congress for an expansion of federal supervision over the oil markets and increase penalties for market manipulation. All this while he continues to speculate in alternative energy which is failing as a money maker.

We will have more federal regulations and more big government which is more of what we currently have.

The Republicans would prefer to see approval of Keystone XL, a halt to the over-regulation of refineries, and increased domestic oil and natural gas exploration. President Obama falsely claims we only have 2% of the world’s oil resources while we are sitting on oil reservoirs that could last for 250 years. Investors

The $52 million is to hire more government workers at unaffordable salaries. It doesn’t do much for private or free enterprise, not that we have that any longer.

In fairness, Obama feels pressured to do something about the high gas prices.

The proposal aims at detecting and detering illegal manipulation by energy speculators, which is possibly contributing to our market volatility, but studies show it is unlikely to affect prices.

Speculators can take advantage of oil price volatility and cause the prices to go up or down.

Investments in oil futures is on the increase by pension funds, mutual funds, hedge funds, et cetera and a good deal of the money is betting that oil prices will rise. However, some are betting the prices will go down.

Some analysts surmise that this speculation inflates the price of oil. Studies on oil market speculation indicate that it increases volatility but has no major effect on average prices.

So for $52 million, you will get more regulations, more government bureaucrats, and it is unlikely the gas prices will go down. In fact, we are looking at more expenses on several fronts.

Obama’s plan this time [prior to this, he had a task force] calls on Congress to:

— Increase six-fold the surveillance and enforcement staff of the Commodity Futures Trading Commission to better deter oil market manipulation.

— Increase spending on technology to provide better oversight and surveillance of energy markets.

— Increase civil and criminal penalties against firms that engage in market manipulation from $1 million to $10 million.

— Give the Commodity Futures Trading Commission authority to increase the amount of money that a trader must put up to back a trading position. The administration officials said such authority could help limit disruptions in energy markets.

In addition, the Obama administration, on its own, will increase access to the commission’s data so the White House Council of Economic Advisers [over-reaching czars] can examine and analyze trading information.

President Obama promised to double-down on green energy even though it has come from nowhere in four decades and won’t go anywhere for decades to come. First Solar is in the process of laying off 30% of its workers and it is only one of many that is failing. Meanwhile, gas prices are plummeting and, instead of investing in natural gas, President Obama is going to step up regulating it.

 

 

CBS News

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