Thursday, April 21, 2011

Scapegoating 101: Obama Rips 'Speculators' and Greedy Capitalists for the High Oil Prices That He Intentionally Created

As the full impact of his massive budget deficits and senseless drilling bans are felt, President Obama has attempted a classic maneuver: deflection.

Instead of investigating fraud and corruption at banks, and instead of questioning the Fed's policy of US dollar debasement, and instead of pondering the role his administration's budget deficits have on the price of commodities, Team Obama Targets Oil Traders and Speculators...

...The first rule in scapegoating, of which president Obama is a renown grand-master, is to quickly point the finger at someone else before everyone figures out where the finger should be pointed.

Bear in mind that traders and speculators probably are pushing the price of oil higher. I cannot quantify "how much" but open interest in commodity futures by speculators is at or near peak levels. Moreover, hedge funds and pension plans have plowed into commodity ETFs. These actions have an upward, yet unquantifiable effect on price.

The root cause of this mess however, is massive, perpetual, and ever-increasing budget deficits in conjunction with the Fed's explicit policy of US dollar debasement.

As a result of those forces, it is perfectly natural for traders and speculators to bet against the dollar and on hard assets like gold, silver, and oil, even though the trade may become overly one-sided, as it is right now.

Thus if Obama wants to point a finger, he should point a finger at himself, at Congress, and at the Fed, not at traders and speculators.

But he won't.

Barack Obama wants higher energy prices. I mean, this is the same man who said that the cost of energy would "necessarily skyrocket" under his 'cap-and-trade' policies.

He predicted it. He wanted it. He's got it.

He is to blame. Not "speculators". Not capitalism. Him. Obama.


James Chandler said...

Nice article. You didn't mention the role of failing to exploit domestic resources. Many people began calling for more drilling and exploration as well as increasing infrastructure some two years ago. Those efforts would be about to start producing now. Better, more stable domestic oil production would not only create jobs directly, it would greatly reduce the impact of international crises, real and imagined, on oil speculation. It is partially a simple matter of supply and demand, partially a matter of political realities. But, hey, it would be terrible to reduce potential profits in the commodities market for the sake of something as frivolous as stability (not to mention national security).

Zilla said...

0bama hates this country and he gleefully destroys it at every opportunity. His ruinous enegy policies are just one more tactic to break the back of ordinary Americans.

Anonymous said...

just one more 'nice' and 'ignorant' article.

your buddies at Goldman say it's speculation that accounts for $25-30 of the cost of a barrel.

Now who should we believe, you or them?

directorblue said...

@anonymous turdling:

since goldman donated $1m+ cash to obama's campaign...

since goldman has suffered virtually no prosecutions at the hands of the doj for the mortgage meltdown...

since goldman's chairman is an honored guest at obama's state dinner...

i would think that you'd be questioning your dear leader's affiliation with corporate cronyism.

but that would require considered, rational thought - something you're obviously incapable of performing.

now, go back to being a drone and reading daily kos.

VaGal said...

Allen West for President!! Wrong thread? No, no I don't think it is.