Obama suggests windfall tax in response to gas prices

[Urchin]

I think I see your point, I am still not sure I agree with it though. 

The biggest problem I see is that there doesn't seem to be a "too high" price for oil.  Speculators are buying it from other speculators, so when it comes time for the refineries to buy it the price has already been inflated.  It could be more or less inflated depending on how many times it has been 'flipped', but it is still inflated. 

One other thing... if oil demand has been falling for 2 years now, why is the price of oil skyrocketing?

[SteveBailey]

I think I see your point, I am still not sure I agree with it though. 


One other thing... if oil demand has been falling for 2 years now, why is the price of oil skyrocketing?

It's the next easy money scam now that they laid waste to the housing market and it is correcting.

[Nashwan]

One other thing... if oil demand has been falling for 2 years now, why is the price of oil skyrocketing?

It's falling in the developed world, which has economic growth rates of around 2.5%. It's rising fast in parts of the developing world, like China, which has growth rates around 10%. It's also rising fast in the major oil exporters, like Saudi Arabia, who are rolling in money at the moment because of the high oil prices. Saudi Arabia increased their oil consumption by 7.2% in 2007, China, the second largest consumer of oil, increased by 4.1%, India by 6.7%. Last year, world oil production fell by 0.2%.

You have more money chasing less oil. The price has to rise to reduce demand.

[Getback]

I heard a clip from McCain today and he is of the same mindset as Obama. Here's one for you though. McCain said we should tax any industry that has windfall profits (uh who decides what windfall profits are). So basically they want to control your wages, your health, your very lives and punish anyone who succeeds. Republicans and Democrats. It's, putting it lightly, annoying.  Socialism and Marxism are taking a strong grip in America.

It's pretty scary stuff.