Since 35% of the cost of gas is due to the fallen dollar, shouldn't Congress forbid Bush to borrow more?

Question

You are both wrong. I'm sick of this antiquated parroting of "supply and demand" by those who do not keep up market ecologies.

Oil demand is flat and actually less than demand. There are millions of barrels stored and unsold right now.

The price of oil is driven by speculative manipulation (by futures traders) and dollar depreciation on one hand and on the other by war and instability.

Oil producing nations no longer control the price of oil - Wall street does. If you do not know about the deregulation in the oil futures market.(JUST like Enron).... Please do not answer! The Federal Government under GWB most certainly has power over the Fed to print money and issue T-bills. (borrowing $$$)

Answer 1

The premise of your question is not correct. The biggest reason for the rise in the cost of gas is simple economics and the law of supply and demand.

The economies of India and China are growing and they are using more oil yet the production of oil has not gone up. The simple law of supply and demand states that when demand goes up and the supply doesn't the price will go up.

The second flaw in your question is that the president doesn't controll spending Congress does and right now it is controlled by the Democrat party.

Answer 2

The high cost of gas is caused by speculation in the oil futures market, a function of supply and demand ( more people want a finite resource- oil), and mandatory additives like ethanol which isn't cheap to make.

Bush doesn't borrow anything, Congress does and to be fair Republicans and  Democrats alike have blown up the budget with nonsense stuff. Democrats might have a majority but they couldn't pass a rule about a bathroom break without Republican support. However when they controlled Congress last time they spent like drunken sailors on shore leave and so did Republicans when they were in control.

My state has Republican super-majorities in both houses and can't get spending under control.

Answer 3

Bush has no power to borrow,  only the Democratic controlled Congress can do that.

No more taliberal hate and lies please

Answer 4

Well, Congress are the ones doing all the spending.  The purse is their responsibility.  So President Bush's name shouldn't even be brought up in this question.