corrente

Dick Cheney, speaking in Arkansas, tries a new up-is-down theory that it's the DEMOCRAT'S fault us poor peons are getting screwed--er, we mean "cheneyed" of course--at the gas pump. Juan Cole, in his usual elegant and economical way, slices, dices, minces and purees this absurdity. Go read the whole thing for the pure enjoyment of it. A quick summary:

I don't often find Dick Cheney amusing, but I fell off my sofa belly-laughing over this one.

Cheney, being an oil man, knows exactly why petroleum prices are high.

1) The Iraq War and the US mishandling of the aftermath have had a significant upward impact on petroleum prices.

a) The uncertainties of the Iraq situation (and remember that the US is rattling sabres at Iran periodically, too) are adding at least $10 a barrel to the price in speculation and anxiety. If an American is paying $1.85 at the pump, it would be $1.39 without Cheney.

b) The continued sabotage of Iraqi oil pipelines and facilities have most often limited Iraqi exports to a million barrels a day, when before the war Iraq was exporting 2.5 million. The loss of Iraqi production is not a big factor in price (say 2%), but it comes on top of the uncertainty and speculation.

That puts the Cheney Premium on US gasoline prices at 27 percent!

2) The consolidation of the energy market in a few corporate hands has pushed up prices, and threatens to become worse. We already know that Enron, led by Bush's dear friend and patron, Ken Lay, ripped off California consumers deliberately.

3) Instead of taking steps to increase US energy efficiency in the wake of 9/11, the Bush administration has encouraged consumption. High consumption contributes to high prices....

4) There are other causes for the high prices right now, including decisions of the OPEC cartel (Cheney's friends), a strike in Nigeria, and the Russian government's dispute with Yukos Petroleum over $3 billion in unpaid back taxes. These crises are temporary and will pass, and the price will fall again. To my knowledge, the US Democratic Party is not involved in any of these crises.