Congressional Insanity: Sue OPEC over Oil Prices

[ehaase]

http://globaleconomicanalysis.blogspot.com/

In a veto proof margin, no doubt enhanced by election political pandering, the House passes bill to sue OPEC over oil prices.

The House of Representatives overwhelmingly approved legislation on Tuesday allowing the Justice Department to sue OPEC members for limiting oil supplies and working together to set crude prices, but the White House threatened to veto the measure.

The bill would subject OPEC oil producers, including Saudi Arabia, Iran and Venezuela, to the same antitrust laws that U.S. companies must follow.

The measure passed in a 324-84 vote, a big enough margin to override a presidential veto. The legislation also creates a Justice Department task force to aggressively investigate gasoline price gouging and energy market manipulation.

"This bill guarantees that oil prices will reflect supply and demand economic rules, instead of wildly speculative and perhaps illegal activities," said Democratic Rep. Steve Kagen of Wisconsin, who sponsored the legislation.

The lawmaker said Americans "are at the mercy" of OPEC for how much they pay for gasoline, which this week hit a record average of $3.79 a gallon.

The White House opposes the bill, saying that targeting OPEC investment in the United States as a source for damage awards "would likely spur retaliatory action against American interests in those countries and lead to a reduction in oil available to U.S. refiners."

Bush Correct Again

Bush was correct in threatening to veto housing legislation, and this veto is clear cut as well. Ironically, after having nothing good to say about President Bush for nearly 8 years, I am now defending him in back to back issues.

Congressional Arrogance

The arrogance of Congress is amazing. Congress actually thinks it can pass legislation the rest of the world must follow. Imagine the outrage if China passed laws and told the US what to do! China, Saudi Arabia, Brazil, Iran, and five dozen other countries should all issue a joint statement.

It should read as follows:

If you are wondering why oil prices are high you should look into a mirror. You are blowing $trillions in Iraq, wasting countless billions on housing bailout plans, you have troops stationed all over the world, wasting energy at great expense.

The taxes you are collecting do not meet your expenses, on anything. Look at your latest farm bill, your tariffs on ethanol and your policies on grains, all of which are driving up prices. It's no wonder the the US dollar is falling.

Your president and treasury pay lip service to a "strong dollar policy" but the actions of Congress and your administration are doing everything they can to destroy the dollar.

Instead of trying to write laws for the rest of the world, please take care of your own business.

Instead, everyone tap dances around the issue, attempting to be as diplomatic as possible. Clearly diplomacy is not working. And it's no wonder that diplomacy is failing given that Congress is practically brain dead. A nice well deserved "Go To Hell" message just might wake Congress up. I doubt it actually, but it sure can't hurt.

Mish Oil Plan

Eliminate ethanol subsidies (Brazil produces ethanol at 1/3 our cost but we will not allow ethanol imports)

Eliminate crop subsidies

Eliminate all tariffs and all subsidies

Adopt a balance budget (This will strengthen the US dollar, dramatically)

Get out of Iraq, Europe, Japan, and damn near everywhere else (This will ease geopolitical tensions and have Iraq pumping oil within 4-5 years or less)

End US imperialism (This is very dollar supportive)

Legalize hemp for fiber production and biofuels (This will reduce the need for petroleum based fibers, and hemp will be far better at producing biofuels than corn)

Let the free market find a solution (If Congress would get the hell out of the way, the free market will find a practical solution)

Instead Congress wants to sue OPEC. In a way, suing OPEC is innocuous because it is a pointless waste of time and going nowhere. I talked about this idea recently in Congress Whistled Offsides. However, this is very frustrating to me because the answers are so easy.

I am all in favor of being able to tell OPEC where to go. But the plan has to start with free market principles, not US imperialism or Congress attempting to dictate laws for the rest of the world.

Mike "Mish" Shedlock

http://globaleconomicanalysis.blogspot.com

[avant1963]

Oil is high because of Wall St speculators, not because OPEC isn't pumping enough dead dinosaurs out of the ground.

Maybe we should sue white guys in expensive suits. Nah, let's privatize Social Security instead and give then control over that too. There's no way that could go wrong.

[vonVeezelsnider]

Oh I Like This Idea

'cause this won't drive the price higher...

[daves87rs]

Oil is high because of Wall St speculators, not because OPEC isn't pumping enough dead dinosaurs out of the ground.

Maybe we should sue white guys in expensive suits. Nah, let's privatize Social Security instead and give then control over that too. There's no way that could go wrong.

+1

Let the butt kicking begin....

[daves87rs]

Oh I Like This Idea

'cause this won't drive the price higher...

*bangs head*

Yep.

*goes back to banging head*

[z28luvr01]

We don't even get our oil from OPEC. This is like suing Chevy because the tailgate on your Tundra just gave out.

[FAPTurbo]

Yeah, and there's not much point in suing Canada. We're on strike anyways.

[AAS]

Yeah, and there's not much point in suing Canada. We're on strike anyways.

Still waiting for that internet money? How's that working out for you guys?

[vonVeezelsnider]

Yeah, and there's not much point in suing Canada. We're on strike anyways.

Yeah... US Congress is trying to label the Alberta Tar Sands up about 300 Miles north of here, you know, where you Americans get like 35%+ of your oil from, as a 'dirty process' crude oil source and block bringing as much of it into your country...

The Alberta Premier says we can sell oil to China and India for a heavier profit margin, and that they want our oil bad, and if the US Government tries to screw us with tarriffs/export restrictions, we'll send our Texas Tea elsewhere.

[loki]

this guy is talking my kinda language. get the Government out of it!!! look at how cheap computers are, and they have 1 restriction i believe, ffc compliance. phones too. minimally regulated industries typically flourish.

[FUTURE_OF_GM]

Oil is high because of Wall St speculators, not because OPEC isn't pumping enough dead dinosaurs out of the ground.

Maybe we should sue white guys in expensive suits. Nah, let's privatize Social Security instead and give then control over that too. There's no way that could go wrong.

I agree 100%

Currently, there isn't a supply issue.

Is Congress this out of touch with reality?!?!? I mean, I know they're dumb, but c'mon...

OPEC has our balls on the cutting board, whether we like it or not, it is NOT in our best interest to piss them off. What? Does america think we actually matter as customers? Yeah right! OPEC would be just as at home selling more oil to China and India anyways, especially given their rate of growth relative to ours.

[FUTURE_OF_GM]

Yeah... US Congress is trying to label the Alberta Tar Sands up about 300 Miles north of here, you know, where you Americans get like 35%+ of your oil from, as a 'dirty process' crude oil source and block bringing as much of it into your country...

Why the f*ck would they do something like that?!?!?

High prices are finishing off our economy and our dumb assed leaders are trying to tighten the supply even more?!?!

The self destruction in this country has hit an all time high.

All for the sake of some bull$h! environmental "game"

Edited May 22, 2008 by FUTURE_OF_GM

[vonVeezelsnider]

Why the f*ck would they do something like that?!?!

I know!

It's not just the US Government, the UN is trying to pull similar $h! on us as well.

Every time Premier Ed Stelmach or Deputy Premier Stevens, or the Minister for Sustainable Resource Development, Ted Morton, goes down to DC (which is actually quite often- we have our own ambassador in Washington as well), they're always met with clueless American environmental protesters donning Polar Bear suits who drank the Kool-Aid and now believe that the oil from up here is dirty because it has to be separated from sand, but what they don't know are the stringent environmental surveillance policies, where we keep the oil companies on a way tighter leash than Venezuela or even the US- or the fact that once we're done in an area the oil companies have to help return the land to a state similar to before drilling.

Edited May 22, 2008 by vonVeezelsnider

[vonVeezelsnider]

By 2015, we'll be giving you 3 Million Barrels a Day... And We're the Only Non-OPEC Supplier who can increase production

We produce 1/10th of a percent of the world's greenhouse gasses...

http://www.canadianembassy.org/recordings/..._RonStevens.mp3

If you right click and save as, you can download the MP3 and see for yourselves.

[FUTURE_OF_GM]

Well, the UN doesn't surprise me. It's always been a big waste of time.

[loki]

It's not just the US Government, the UN is trying to pull similar $h! on us as well.

Well, the UN doesn't surprise me. It's always been a big waste of time.

don't piss of our future global government. certain pres candidate( s ) think they need to pass things that the UN wants done... like a .7% tax for "global poverty"

[IfICouldWouldYou?]

More stupidity from our elected officials. The last time I checked, non-OPEC oil was counting for nearly half the world's dead dinosaurs. The North Sea, Russia, Canada and others are pumping out more and more - they have nothing to do with OPEC. I agree with the WallStreet suits remark, though: let's sue those bastards. They are the ones running up the price of oil. Speculators, pure and simple.

[FAPTurbo]

Still waiting for that internet money? How's that working out for you guys?

Pretty horrible; we've run out of Maple Syrup, and all four ressidents of Saskatchewan have died of malnourishment. I also got into a big argument yesterday with my buddy about how he's not my friend.

[AAS]

Pretty horrible; we've run out of Maple Syrup, and all four ressidents of Saskatchewan have died of malnourishment. I also got into a big argument yesterday with my buddy about how he's not my friend.

Ouch. So, did your friend tell you he's not your pal?

[Blake Noble]

Well, the UN doesn't surprise me. It's always been a big waste of time.

I have never understood why the UN thinks it is essentially the world government. When Woodrow Wilson envisioned his "League of Nations" from his Fourteen Points speech, he never thought that it should be a world government, just as a way for all countries and societies to discuss key global issues and seek peaceful agreements on how the issues should be resolved to prevent war.

The UN has too much power.

[loki]

The UN has too much power.

power - ability to do things with or without authority.

Authority - ability to do things that have been written down, expressly for that purpose.

[FUTURE_OF_GM]

I have never understood why the UN thinks it is essentially the world government. When Woodrow Wilson envisioned his "League of Nations" from his Fourteen Points speech, he never thought that it should be a world government, just as a way for all countries and societies to discuss key global issues and seek peaceful agreements on how the issues should be resolved to prevent war.

The UN has too much power.

Because man has a natural need for power.

Extremist Christians believe that we will all be united under one global government and that the anti-christ will control the world that way. I'm beginning to see that take shape.

[CARBIZ]

The world is getting too crowded. We are going to have to learn to make nice with each other, or we are going to blow up our sandbox. One of the reasons I laugh at Sci-fi movies (like Independence Day) that show sentient beings from other realms as blood thirsty, aggressive monsters hell-bent on destruction is because I realize all civilizations are going to have to get passed this phase we are in at this point in history, or that civilization will simply wipe itself out and the clock will start ticking all over again.

Maybe there is no intelligent life in the Universe, if the strife we are witnessing over the past 75 years is any indication of the jockeying for position and power that we are seeing now.

What a nasty trick Evolution has played: start our race in one sandbox, then disperse peoples across expansive spaces, sprinkle in distance and time, then throw them back together again thousands of years later now that they are all 'different' and then (for the ultimate cosmic laugh) give them dangerous toys.

I am beginning to think we are too stupid to occupy this planet. Perhaps a good asteroid is what is needed here. Let Nature roll the dice again and see if something better comes up in another few million years.

[Blake Noble]

I am beginning to think we are too stupid to occupy this planet. Perhaps a good asteroid is what is needed here. Let Nature roll the dice again and see if something better comes up in another few million years.

"Some say a comet will fall from the sky,

Followed by meteor showers and tidal waves,

Followed by faultlines that cannot sit still,

Followed by millions of dumbfounded dip$h!s.

Some say the end is near.

Some say we'll see armageddon soon.

I certainly hope we will 'cause

I sure could use a vacation from this

Silly $h!, stupid $h!..."

:AH-HA_wink: