OIL PRICES=CONTINUED

Sgt Fluffy said...

What about all this oil we are supposed to be looting from Iraq? Where has it gone? Who is getting it? Also, the oil prices are fluctuations in the market....supply and demand. What would be worse....Governmet controlled price caps to destroy the market or free market economy. Somewhere down the line someone will bring in cheaper goods to undercut the ones that are overcharging.

As for the oil we are supposed to be looting from Iraq, they can't keep their oil production online long enough to produce oil to loot. Besides, their oil is supposed to be paying for our liberation of their country from Sadam's control.

As for oil prices being part of the ebb and flow of the markets, that only works when there is competition for those goods from other markets. Yes we import our oil from other countries but it still flows through the same large oil companies that want to line their pockets at our expense. Those who control the flow control the price.

I'll give you another example of price control. The Debeers corperation is famous for their diamonds. They are solely responsible for all the diamonds sold in the US. It's be said long ago that if all the diamonds that Debeers owns were released to the markets at one time, the price for a diamond would be a quarter. BUT, since they only release a few hundred a year, they control the price. And where else can you go for diamonds?

So, its not always about supply and demand, after all, nothing happened to the supply after hurricane Katrina, but in some places gas prices reached $6 a gallon.