McCain's reason for high gas prices: blame OPEC

[sabra]

http://weblogs.baltimoresun.com/news/politics/blog/2008/05/mccains_simplistic_reason_for.html#more

If you want to show that you have a subtle understanding of the world economy, when asked why gas prices are high you might want to offer an answer that mentions world oil demand, the declining dollar etc.

But those weren't among the reasons Sen. John McCain, the all-but-official Republican presidential lnominee, offered during his interview with Bill O'Reilly on Fox News Channel last night. It's the fault of the oil "cartel," meaning the Organization of Petroleum Exporting Countries, or OPEC, he said.

"I think it's because of one fundamental problem. It's because you have a cartel that controls virtually all of the world's oil supply. And they, obviously, can set the price of oil to the highest level that can sustain it," McCain told O'Reilly.

Many problems with that answer. One, OPEC is responsible for about 40 percent of the world's oil exports, not "virtually all" the world's supply, as McCain said.

Also, as indicated earlier, economists place much of the blame for high oil prices on factors other than OPEC. There's demand in rapidly developing countries like China and India, for instance.

...

Then O'Reilly blasted the oil industry, which made the TV show host sound like a veritable socialist as he accused the oil companies of gouging consumers with impunity.

McCain refused to join in the oil company bashing.

[EmperorHasNoClothes]

1. Yeah. Hey, I know, let's INVADE!

:eyes:

[aint_no_life_nowhere]

8. Yes, that seems to be the solution McCain is suggesting

If OPEC is the problem, then the only way to solve that problem is to militarily coerce and destroy it and its member countries.

[BrklynLib at work]

2. Wasn't prez shit-for-brains supposed to have OPEC in his hip pocket???

Aftr all, he is on hand-holding terms with Saudi oil barons.

[spanone]

3. he's headed to saudi arabia next week for high-fives with the sheiks themselves

[Beausoleil]

6. More pre-spigot-opening jawboning?

That always works.

[SammyWinstonJack]

4. It's the other way around. They control pRez puppet. Well them and cheney, that is.

[shain from kane]

5. Gee, John, OPEC been around for a long time. What were your earlier proposals in the Senate?

[seasat]

7. Egg-spurts, they don't need no stinkin' egg-spurts!

That's why he also thought a 3 month gas tax holiday was a good idea. The fact is that Saudi Arabia is pumping nearly as much as they can handle because they are making money hand over fist. The fact is that Saudi Arabia is one of the few places where oil can still be cheaply removed. They've greatly increased their output over the past decade. Sure, they could rapidly pump themselves dry with a massive drilling program but they are in the business of making money for themselves and preserving their dictatorship (Ooops, I mean monarchy). The Saudi's approach is similar to that of McSame's corporate backers. I imagine that after he loses in the election, he'll go over to Saudi Arabia and walk hand in hand with their king just like Shrubbie.

Repugs find it easier to come up with simplistic phoney boogey man to blame for the problems in our country instead of real solutions. It's all "terrierist's" fault that we have to go war. It's the poor's fault that they're poor. It's the environmentalist whackos fault that we don't have enough industry. It's China's fault that we have a terrible trade imbalance. No. The reality is that it's our fault and we are the ones who need to address the problems instead of blaming others through sound bite slogans. This is one of many reasons that I could never be a Repug.

[heidler1]

9. McCain and Hillary want to enable the addiction we're stuck with regarding oil.

The only long term fix is to quickly discourage all habits that misuse oil for personal pleasure. The biggest issue is how to do it so the poor and middle class get a fair share of the dwindling supply of oil for their needs and desires. This could be worker out with progressive credit cards issued by the government, effectively like the gas stamps used in WW2.