Crude Oil and Presidential Intervention?

Thomas J. Benthall tbenthal at SCHOOLLINK.NET
Fri Oct 13 23:55:00 MDT 2000


On 13 Oct 2000, at 22:52, John wrote:

> At 01:38 PM 10/13/00 -0400, Thomas J. Benthall wrote:
> >Don't expect any govermental freezing of gasoline prices.
> >
> >Unless the President and his cronies are more economic illiteral than I
> >think they are, it ain't gonna happen.
>
>          Gore is, but I'm sure that Bush is smarter than that. Nixon made a
> similar stupid move in the '70s and the results were deadly.


Gore is, but I'm sure that Bush is smarter than that. Nixon made
a
similar stupid move in the '70s and the results were deadly.


Least likely chance with Bush.   But, who knows what a politician will do.
They'll all do what is most expedient for themselves and their party.
Treed politicians are very ingenious animals.  Besides, they're not in control
anyway.

Yes, the price freezes of the '70s were a failure.   There has never been a price
reeze that has been successful.   The # 1 law of economics dictates this:   No one
produces unless it leads to something he wants.

But if it is tried this time it will be even more deadly.   Economic conditions
are worst now than in Nixon's day.

Look for energy prices to go higher than hardly anyone realizes.

If anyone thinks not, then consider this piece of news.   Remember
the increase in oil production by OPEC?   It didn't happen and it ain't gonna
happen.   Our press reported to us that OPEC production was to increase by
800,000 bbls/day.   Not exactly true.  The truth is that the QUOTA was to be
raised by that amount.  The problem is this:  When the agreement was made,
actual production was already 700,000 above quota.   What this means is that
actual increase in production will only be 100,000 bbls.

No way out of a recession (to put it mildly).    Oil prices are gonna go to the
moon.  And remember this:  Every crude oil price increase has led to a recession.

Clinton is on the way out.   Now, who do you think is gonna take the blame for all
the hell that's headed our way?.

TJB



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