This article is about what Obama is going to do about the gas prices. Obama will ask Congress to implement a plan that entails strengthening federal supervision of oil markets and increasing penalties for market manipulation. This is mainly because the republicans have been hammering him on his energy policies, because the political cost of high gas prices is on the president. Obama plans to turn the tables on Republicans by taking aim at Wall Street's role in the oil price chain. Republicans are also trying to place limits on the financial regulation legislation Congress passed in 2010 over Republican objections. Though the House Republican budget, which calls for sharp reductions in government programs, does not specify reduction in spending by the trading commission, the administration officials said that if the cuts were applied the commission would lose more than five times what it spends on regulating energy markets.
I think that the fact that the government is allowing offshore drilling will decrease prices because the supply curve would shift a bit to the right, but this is only for a little bit. I have no idea what exactly "market manipulation" is because the article did not discuss it. This is probably another example of how vague the media is when reporting important situations like this. We just discussed today in class about peak oil, so that is why the increased supply is only temporary. I do believe in the Peak Oil theory and I do believe that we will see the end of oil pretty soon. I also find it surprising and pretty amazing how every time we have been near a Malthusian catastrophe and we have invented new technologies to get out of it. I wonder what new technologies would be invented to get out of this one. But regardless of policies and what the politicians say, they will only be prolonging the oil shortage effect and they better be thinking of implementing alternate energy in our society such as solar.
http://www.cbsnews.com/8301-250_162-57415066/obama-seeks-to-confront-oil-market-manipulation/
I think that the fact that the government is allowing offshore drilling will decrease prices because the supply curve would shift a bit to the right, but this is only for a little bit. I have no idea what exactly "market manipulation" is because the article did not discuss it. This is probably another example of how vague the media is when reporting important situations like this. We just discussed today in class about peak oil, so that is why the increased supply is only temporary. I do believe in the Peak Oil theory and I do believe that we will see the end of oil pretty soon. I also find it surprising and pretty amazing how every time we have been near a Malthusian catastrophe and we have invented new technologies to get out of it. I wonder what new technologies would be invented to get out of this one. But regardless of policies and what the politicians say, they will only be prolonging the oil shortage effect and they better be thinking of implementing alternate energy in our society such as solar.
http://www.cbsnews.com/8301-250_162-57415066/obama-seeks-to-confront-oil-market-manipulation/
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