You could cue up Arte Johnson after that "interesting" title, to wit: "But STOOPID." From my congresscritter's newsletter, which hit my in-box moments ago:
Americans pay the price of Loose Monetary Policy and Quantitative Easing at the Pump
A weak U.S. dollar due to the Federal Reserve's unprecedented pumping of dollars into the American economy is adding 56 and a half cents* to the price of every gallon of gasoline, according to a new study by the Joint Economic Committee Republican staff.
Titled The Price of Oil and the Value of the Dollar, the study notes the value of the U.S. dollar has declined 14 percent since the Federal Reserve began its program of quantitative easing in November of 2008. With oil an international commodity that trades in U.S. dollars, the declining value of the dollar has added $17.04* per barrel to the price of Brent Crude oil. Crude oil is the primary input in the process of making gasoline.
Americans are paying a steep price at the pump as a result of the weak dollar policies pursued by this Administration and the Federal Reserve. There are two lessons here. Rather than pointing fingers at energy manufacturers the President should be looking to his own Treasury and the Fed for answers to the high price of fuel. And this drives home the point that the Federal Reserve should have one mandate, price stability, to prevent inflation and preserve the value of the U.S. dollar.
Read more here.
Ah, yes. The Fed. They're a day late and we're a dollar-three-ninety-eight SHORT. Bernanke will burn in hell, I'm convinced of that. Asshat.
Take this as a criticism of liberals, or as a criticism of politicians whose resumes are thin on working on deadlines to produce things of value other people can use. Take it either way -- both work.
ReplyDeleteThere is a persistent trend here of coming up with ideas that fail. A consistent staple part of this trend is that precise moment where the trolley leaves the tracks, has something to do with a commodity. The plan calls for the commodity becoming precious and highly sought-after...by means of becoming abundant.
I am writing in extremely broad terms here. The spirit of my writing is not even confined to economics. Go beyond economics, to entirely different things. Gimmicks that save the environment, or "raise awareness" about it. Designated victim groups to be protected under affirmative action quotas. Hybrid cars. Doggy doo scoop dispensers by walking trails; the walking trails themselves. The plans fail at the precise moment where they say something like..."Widget X will become highly prized and coveted, because Widget X will be in everybody's face and there won't be any getting away from it." Forget economics -- try human psychology. This just isn't the way people work.
But the so-called "leaders" who haven't actually produced anything, seem to consistently think this will work. Thus it is with QE1 and QE2. More dollars chasing fewer goods, and that will fix the problems, there won't be any drawbacks. Am I oversimplifying what Bernanke had in mind? I'd like to think so; but I'm left with no reason to think so. You and I are in the same boat. I have a 401k, too. Not running too terribly far behind.
(Word verification: expod)
Wait until we get closer to the presidential election and watch gas prices drop like a rock!
ReplyDeleteIt's a low down dirty shame the way the Fed operates, and we, the American people continue to get fleeced at the gas pump.
Good post.
Aaaah...Congressman Brady, from The Woodlands. Nice 'hood, as I understand.
ReplyDeleteHad a buddy from high school that lived there for years. He's rich. Like you.
When you look at that graph, the thing I take away from it is that the high cost of gas hurts even more today than it did when Bush had it up around the same mark.
ReplyDeleteBuying power is down, national debt is growing by the day, values of items that should be stable are instead going down (housing especially).
It ain't a pretty picture. And Duh One is saying 8 years are enough? huh. I'm thinking with him in the office 2 years is already too much.
Not running too terribly far behind.
ReplyDeleteBut you WILL be, Morgan, if and when inflation gets out of control.
Ed: I don't see gas prices dropping anytime soon, election or no.
He's rich. Like you.
Heh. Yeah... you'd be surprised at how many rich guys there are in Beautiful La Hacienda Trailer Park. It's a VERY well-kept secret.
I'm thinking with him in the office 2 years is already too much.
I'm with ya, Anon. Yet there are STILL legions of asshats out there who will vote for him again. Go figure.
"...legions of asshats..."
ReplyDeletethose sound like asslemmings
Conspiracy theorists have said that both Lincoln and Kennedy were assassinated because they wanted to change the Federal Reserve System. The Feds definitely have some power to jick with our lives.
ReplyDeleteSkip: I've filed that term away for future reference.
ReplyDeleteLou: You know how I feel about conspiracy theorists. See "asslemmings," above.