Please, No More Dog and Pony Shows!

In its weekly report the EIA has indicated that crude oil and gasoline stocks remained at the level they were the week before. Shockingly the price of crude on the NYMEX has begun to rise and is currently back over $100 p/bbl. ** Since this posting oil dropped back under $100 p/bbl **

The International Energy Agency indicated in a report today that rising energy prices are affecting the global recovery from the Great Recession and that oil exporting nations should increase production to offset the recent price surge. In summary the IEA points out that high oil prices help neither producer or consumer nations and that a move to ease the financial burden by increased oil production should be undertaken sooner rather than later.

One thing for sure will continue to happen here in the United States,  politicians will continue to posture and make idle threats while middle-class America and the poor around the world bear the brunt of the increased cost and decreased discretionary income vital to an global economic recovery.

What has shocked me is the lack of leadership on all levels from our government in addressing the problem.

The President has been all but lame on the issue convening a Justice Department investigation that was nothing more than lip service to the U.S. public. If the Justice Department didn't throw bankers in jail after the Mortgage-Credit crisis what are they going to do to Big Oil and bankers now? (Maybe a good talking to is in order) It should be added that if President Obama would empower the CFTC to do their job the rise in the price of oil caused by speculation would already be under control and he could save taxpayer dollars for this impotent investigation.

Congress' efforts to threaten oil giants all but blew up in their face last week with Big Oil execs firing back about how they need tax subsidies to be competitive and profitable. Logic dictates that any reduction in subsidies or increase in taxation will only be passed along to the consumer without some form of price control. The last time there were price controls on oil was when Richard Nixon was in office and I doubt that President Obama or Congress will step up to that plate again.

So where is the real leadership from our Government and not the Dog and Pony Show that Congress alluded to last week? 

• Where are the increases in MPG requirements for car manufacturers beyond what we currently have? Now is the time to push them through while public support is there. 
• Why are we not funding conversion to liquid propane powered vehicles or another alternative fuel source beyond oil?
• Where are moves to regulate oil trades and reduce or eliminate speculation beyond those that actually utilize oil i.e. airlines, trucking companies, farmers etc. etc.? 
• Where are the threats of price ceilings and further regulation of the oil companies themselves? 
• Where are the permits for drilling on the OCS? Just because BP and co. didn't follow regulations and accepted guidelines doesn't mean others won't?

 Increased energy costs will continue to hamper and slow an economy with 9.4% unemployment. Many of the issues that Democrats and Republicans are currently fighting over are moot without an decrease in the numbers of unemployed. The high level of unemployment is the greatest economic and social threat the nation currently faces and high energy costs will only perpetuate the problem. It is time for Democrats and Republicans to step up and start doing something real and effective about a problem that has dire consequences for the U.S. and the world.