Tuesday, August 30, 2011

Gas Prices Rise to Force 'Fundamental' Change

Gas prices are high for several reasons not mentioned here. The basic reason is there are those in our government that want to slow the growth of America as they see the United States as dominating the world populations with it's success. This is completely unacceptable to these people.

Secondly, by having gas prices rise to levels higher that the average family can comfortably afford causes the family to stay closer to home, that is, reduce the tendency to move to different location for new jobs or just for a better life. There are already plans for anyone wanting to travel from state to state to have travel permits. To anyone over the age of forty and has a sense of history, this will have a familiar ring.

This, the elites figure, will reduce gas consumption, forcing prices higher, and make 'green' energy a more plausible alternative. Also, by forcing people to stay in one spot, restricting freedom of movement, they believe it will be easier to control the population.

Does this sound like Orwell's 1984? The Bolshevik's of 1917? It should. It is. fundamental

What Drives Gas Prices?
Source: Kenneth P. Green, "What Drives Gas Prices: Cartels, Speculators, or Supply and Demand?" American Enterprise Institute, August 2011.

For much of the summer, high gasoline prices have been in the news. As of this writing, the national average gasoline price per gallon hovered around $3.50. The public is unhappy with these high gas prices, and politicians are scrambling to find ways to reduce the pain -- or, failing that, to publicly shoot the messenger by investigating, penalizing or punitively taxing oil companies.

In a new paper, Kenneth P. Green, a resident scholar with the American Enterprise Institute, explores the true causes of oil price fluctuation and explains how policymakers can help lower gasoline prices. Key points in Green's paper include:

High gas prices are inducing consumers to tighten their belts and politicians to call for taxes on oil companies.

About 85 percent of oil price hikes are due to supply and demand, and the remaining 15 percent is likely attributable to environment-conscious regulations.

To help lower gas prices and promote domestic employment and trade benefits in the future, policymakers should facilitate drilling offshore and in the Arctic National Wildlife Refuge, and lift boutique-fuel requirements.

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