02.23.2012 1

Pelosi blames speculators for rising gas prices

By Bill Wilson — Congressional Democrats are once again resorting to the tired line of price manipulation by so-called speculators and oil companies to explain why Americans are paying more at the pump. Meanwhile, the Obama Administration is accounting for rising prices by market forces, saying alternatively that it’s because the economy is recovering and includes increased demand overseas, particularly China.

They need to get their stories straight, because they are entirely inconsistent. Are prices being manipulated, or are they rising as supply fails to keep up with increased demand as the economy recovers?

Meanwhile, both of these contrary explanations miss the underlying weakness of the dollar that is the real cause for price pressures in commodities, including food, oil, gasoline, and is observable in precious metals like gold. While demand did rise globally from 88.3 million barrels a day in 2010 to 89 million in 2011 according the Energy Information Agency, so too has global production increased to 90 million a day in Dec. 2011. So, market forces alone do not explain the price swing.

Of course, this happens every time the nation experiences price shocks: government officials thrash about looking for anyone to blame but themselves for a problem they helped to create with their big spending, money printing ways.

Bill Wilson is the President of Americans for Limited Government. You can follow Bill on Twitter at @BillWilsonALG.

  • Mthammer36

    I think we need to confront Horowitz The head of Freelancers Union,let our Senators & Congressmen know whats going on. Everytime I hear about what this Man Obama has done with this country is sinful. There are too many who are justto ignorant to care about what he has done. Then when you talk to Liberals or independents on the left ,the first words out of their mouths ,well Bush is responsable for what he had taken on in 2009. Obam wanted the job ,nobody twisted his arm to run for President, how he won was lied to the American People . Change was his idea that was all BS , he said I will make sure that the public knows about every Bill that is brought up before it is passed , never happened he lied again. Remember no earmarks ,another lie ,rememberhe was going to decreas the size of government ,another lie ,he has increased the size of government by adding an additional 150 thousand workers to the federal payrole. Anyone who votes for Obama are either Federal Workers , union workers , government contractors , gavernment staffers living in Virginia, DC & Maryland. We need to put a stop to it and go to every presidential debate , everytime Obama opens his mouth , just say liar.

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