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Roy Maynard: Early Returns

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Bill Pelland



Joined: 25 Feb 2008 07:34 am
Posts: 423
Posted: 25 May 2008 02:03 pm
Post Subject: Government intervention Read Article
There is little the government can do directly to solve this problem immediately. Besides the greater demand and shrinking supply of oil, there are a few other factors causing this spike in gas prices.

1. Ever since Ford, our leaders have been talking about reducing our dependence on fossil fuels. However, while many bought smaller cars, the big shift was to pickup trucks that seated 4 or 6 and SUV's. One of the reasons was that pickups and SUV's fell under different mileage standards then other vehicles. The American public just could not give up their power and speed. Now many are backwards in 40,000 and 60,000 vehicles that they can't sell and owe more than their worth.

2. I agree with Bill Bala (one of the few times) about not exploring Nuclear energy. France gets much of their energy this way and seem to do it safely.

3. While oil exploration may be a desired goal, it only prolongs the problem. We need to began to move in the direction of conservation and renewable energy. Now we are paying the price for not doing this sooner.

4. What can be done now?

a. One of the immediate causes of the spike in the price of oil is the devaluation of the dollar. It is estimated that 1/3 of the rise in prices is directly attributable to the weakening dollar. As we strengthen our dollar by reducing deficit spending we should affect the price of oil.

b. The oil company executives also testified that some of the price increase in oil is due to speculation. Big investment firms are able to buy oil on margin. I do not know what the requirements are for commodities but in the stock market you can buy 100.00 worth of stock and put up only 35.00. By raising the margin requirements in the commodities market you will slow down the speculation and quite possibly burst the oil "bubble" causing prices to fall to a more reasonable market driven level.

Taxing windfall profits on oil companies is not the answer. However, the tax breaks that we give oil companies could repealed and this money used to research and develope alternate fuels and delivery methods.

Clinton's idea of having oil companies pay the per gallon tax is not workable either. How would she enforce it. The oil companies would just add it to the price at the pump.

Well one thing I can say! Now that the energy problem is recognized by the American public maybe pressure will be exerted on all of us, and the government to do what we know we must.


Vote Obama President
Vote Noriega (Afgan vet) for US Senate.

Bill Pelland
Murchison, TX

Bill Pelland
Murchison Tx
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