Flibbertigibbet

Almost the Worst Idea in the World

There was a Braves game playing on my favorite AM radio station when I drove home from work today, so I wound up listening to the news on NPR. "News."

I hate how on these "news programs" they present opinion pieces as if they are facts. They don't warn you that what you're about to hear is some misguided fool's blathering at all.

Today, some nut job got on there and read a quick essay about how oil prices soared up in recent history (and have consequently started tumbling downward) and how presidents hold exclusive control of our country's strategic oil reserves.

The whole 'strategic oil reserve' controlled by the federal government is a bad idea in the first place. Without regard to who controls it or what is done with it, a reserve of any resource in the hands of the government is like giving ginsu knives to babies. It places considerable economic potential in the hands of a single politician.

What would happen if a sitting president recieved considerable contributions from oil companies and had an interest in driving prices up to return the favor to his campaign contributors? Right or wrong, what if? Bush? Cheney? Any thoughts?

Or, what if the opposite and he had incentive to open those reserves and drive oil prices down? Clinton did it and some speculate that it was to help Gore's campaign.

If you're invested in oil at all, this must feel something like the Sword of Damocles.

The commentor on NPR pointed out the considerable political pressure on sitting presidents to act one way or another with regard to these oil reserves. To solve the problem, the commentor proposed -- guess what!

To dissipate the strategic oil reserves in the market, end federal subsidies, and progressively return all markets including the petroleum industry to a free market system? Of course not. I was listening to NPR, remember?

He proposed that we create something like a Federal Oil Reserve board similar to the Federal Reserve that controls interest rates.

Even Alan Greenspan thinks the Federal Reserve is a bad idea, or at least he did at one time. No matter how well the FED does it someone is always hurt because interests rates are not controlled on the market. If they are even a smidge too high for a moment too long, then small lenders can't gain more clients. If they are even a fraction too low for a moment too long, then small lenders can't make money. The real losses are against larger lenders, though, who miss out on millions when a fraction of a point is spread out across all of their customers.

So, this guy thinks that an Oil Reserve Board to controll oil prices in the US is a good idea? Has he lost his mind? There is no possible way that THAT is a good idea. None.

And NPR treats is like news.