atlantabiolab
New member
buddy28 said:My father made a pretty good point several years ago suggesting OPEC cuts production when the US and its allies endorse or enforce policy detrimental to Muslim Arabs and Palestinians. They're just getting us back.
We invade Iraq so they crank up oil prices.
Of course there’s a lot more to it. But the principle idea is that OPEC's production quotas are often arrived at using more than just "official" demand/supply forecast analysis. They're paying us back for the unwanted influence the US is projecting, and planning to project in the region.
The real question is, why isn't Bush doing something about it? Bush should be leaning on key member OPEC states to crank up production. Not only would this give a big push to the faltering economic recovery, but boost his reelection chances in the process. IMO, Bushs inaction represents more of a perpetual gratuity care of John Q. Public to his backers in big oil, than a earnest inability to do anything about it.
Bush could do inact certain measures that would assist with this problem, such as reduce or eliminate certain Federal taxes which constitute a significant percent of the cost of gas. State officials are also complicit with regulations which ensure higher than needed prices:
http://www.cato.org/pubs/regulation/regv23n3/brannon.pdf