Why do so many Republicans claim that every market scam is a supply issue?

They said that the "California Energy Crisis" was a supply issue when it was just simple deregulation at the state level coupled with the federal government halting all oversight of electronic exchange commodity markets and derrivatives, and Enron was busy driving up the price by speculating on futures to drive up their profits. They said we needed to drill in ANWR and build plants, but how would that stop speculators?

In 2005 when natural gas prices doubled in less than a year, they said it was a supply issue, but it was one trader named Brian Hunter who ran the energy desk and who was placing spread trades through a hedge fund named Amaranth Advisors, and still they said we need to build more plants and drill ANWR.

They are saying it again even as the CEOs of the Big 5 oil companies claim oil should be nearer to 55 dollars a barrel but speculation is driving up the prices.

Why would they do this over and over and over?
Proof about what?

Proof that Enron traders are sitting in jail cells? Proof that Brian Hunter has been fined 30 million dollars for his role and that Amaranth has been fined 300 million for its role (and it is now bankrupt)?

Proof that they have never been right once? Not once?

Proof that the CEOs of the major oil companies are on the record under oath in Senate hearings saying that the price is out of line with demand? Proof that the Senate has concluded speculation is causing the price spike?
Note that after Enron collapsed, the California Energy crisis was over and prices went back to normal. Same thing happened after Amaranth was prosecuted and collapsed into a 6 billion dollar hole they dug speculating on gas futures.
The "Enron Loophole" was closed on May 14 by Congress. The CFTC now has authority to go after speculators on NYMEX. Unfortunately, the previous Congress opened another loophole through foreign exchanges like ICE, and the Congress has so far given the Justice Department the authority to sue speculators on foreign markets, and soon they should bring legislation forward closing that loophole too, I hope.

Something startted being done back in 2006, but it’s an uphill battle against ignorance about how commodity markets work.

9 Responses to “Why do so many Republicans claim that every market scam is a supply issue?”

  1. brown9488@att.net Says:

    Another question might be…since every candidate we have is already a Senate member, why are they not using that advantage to launch an investigation of our oil supply lines, including speculators and every entity involved.

    It seems as though this would be the fast track to the White House, as they would gain favor with nearly EVERYONE who has to pay for gasoline.

    But…all three are pursuing other objectives and giving the profiteers a free pass.

    Does big oil own our government?

  2. Tony H Says:

    If you have proof of anti trust let us know.. Really dont hold back.

  3. Ezz17 Says:

    Cause they took ECON 101 in college?

  4. Questions U R Afraid 2 Ask Says:

    I don’t get it Greg,

    Democrats are in control of congress….where is there leadership to crack down on this conspiracy?

    I’m a Democrat btw…and have been looking for Democratic Leadership…

    Is that so hard to ask…

    Do you have solutions…..?

    I don’t ask Republicans….because the Democratic Party is supposed to be the Party of Solutions…

    Where Are They?

    I’m A Democrat….who will demand and expect more from the Party that claims it the Party with Solutions….

    It be nice for a change….Greg.
    Lead me Greg…

    A Party should not invest its time in blaming others….


  5. ReelBrothers Says:

    I guess for the same reason the Dems blame everything on corporate greed.
    Fact is they are ALL rich elite blowhards in Congress and could care less what the people want.


    i stopped reading the question a few sentences in. then i stared blankly at the screen for 20 to 30 seconds. then i wrote this stupid answer. :

  7. The Golden Buffalo Says:

    somebodies got the hots for anwr. Who stands to get the money and drill rights would be good to know. Haliburton I presume.

  8. scredawg Says:

    Economics 101: Supply and demand…

  9. SPACE CASE Says:

    Republicans make these claims because like John McCain, they have little understanding of economics.