Do That Voodoo That You Do So Well
March 23rd, 2012 - 7:47 am
In 2006, 73% of Democrats thought President Bush could “do something” about high gas prices, but today only 33% say the same thing about President Obama.
They’re probably right.
Obama is doing something, unfortunately its always the wrong thing.
I still think he could waive summer blends & do what Bush did, threaten to open us up. When Bush did that, the price fell. It was such a coincidence when that happened, wasn’t it? What would happen if they raised interest rates a little?
Part of the reason the nominal price is high IS due to Fed money-printing. But, the Fed is still more worried about a deflationary-death spiral and the prices of many assets (such as houses) may be at further risk if rates were raised. Also, the economies of the EU and China are not looking all that healthy. What would happen if rates were raised? There is reason to believe the prices of gas would go down, along with everything else. And while market-clearing is very painful in the short term but perhaps economically salubrious in the long, the benefits would not be recognized until after Obama loses the election.
Obama *could* do something, but *won’t*.