Moonage Political Webdream

This folks, is nuts:

“We’re going to go right at OPEC,” Clinton said, on a last-minute campaign swing ahead of Tuesday’s Indiana and North Carolina primary clashes against her Democratic rival Barack Obama.

“They can no longer be a cartel, a monopoly that get together once every couple of months in some conference room in some plush place in the world,” Clinton said, sparking cheers in a crowded fire station.

“They decide how much oil they’re going to produce and what price they’re going to put it at,” Clinton said.

“That’s not a market. That’s a monopoly,” Clinton said, in her latest condemnation of the Organization of Petroleum Exporting Countries, as her campaign takes on an increasingly populist tone amid rising gasoline prices.

OPEC, which produces 40 percent of the world’s oil, comprises Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, Qatar, the United Arab Emirates and Venezuela.

Clinton has said she would amend US anti-trust law to allow the United States to confront OPEC, and also promised to tackle the group through the World Trade Organization (WTO), if she is elected president.

How exactly is she going to “go after” OPEC?  Even if she does prove they are a monopoly ( which, by definition, they are not ), who in the world order of things cares?  China’s been dumping stuff on the world markets for years.  The WTO slaps their wrists and they just do it some more.  The WTO is basically useless as a regularoty or policy enforcement force.  It is most useless when dealing with something bigger and richer than it is.  Namely, OPEC.  They don’t have to be a member of WTO, even though most are.  So, what’s she going to do about it?

The one very obvious thing she can do about it drill for more domestic oil, lessening our dependence on foreign lands almost immediately.  However, she has repeatedly and very enthusiastically voted against any domestic development of petroleum in almost any way.  So, scaring OPEC into lowering their prices via increased domestic competition is off the table.  And, they know it.

Once again, I need to state the absolute simplest rule of business economics.  Nothing gets any simpler that this:

IN ORDER TO DRIVE DOWN PRICE, YOU HAVE TO INCREASE SUPPLY.

Period.

The fact Hillary is unwilling to adhere to the simplest business concept is the only reason needed to totally dismiss any economic ideas she might have as far as I am concerned.  It’s obvious she’s pandering for votes.  But, when the pandering is this bad, I would only hope the people being pandered to aren’t that stupid and call her bluff.

I am however, quite often wrong when assuming people think about what the candidates are actually saying.

H/T Poliblog.

Technorati Tags: anwr, demand, hillary clinton, monopoly, opec, supply, wto

Tags: anwr, demand, hillary clinton, monopoly, opec, supply, wto

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