Yesterday, President Obama issued a statement which included a warning to those evil oil companies about price gouging the public (that would be you and me). It all sounds so nice, warm and fuzzy that government agents will look out for our interest in this matter but I recall the reactionary government response to something similar in the 1970s under wanna-be-dictator Richard Nixon.
Nixon showed similar concern for us then when prices were rising due to the inflation that was created by his Treasury Department with the help of the so-called Federal Reserve Bank. The central bank is neither federal, it has no reserves and is not a bank. It controls the “money” supply. Today since our “money” is backed by nothing it is considered a fiat currency. All such currency eventually reaches its real value. ZERO!
Inflation of the currency is a topic you should understand. If you don’t click the link for an easy to understand lesson on economics: http://mises.org/daily/908.
Nixon imposed un-Constitutional “wage and price controls” on nearly everything resulting in shortages of those things since no one was going to produce a product and offer it at a loss.
Should the current President do something similar to protect us will we see a similar result? Perhaps so! I don’t think I want to go through that (or worse) (rationing as a result of shortages?) again.
Governments need to leave the markets alone. Their meddling only causes other problems which they are either too stupid to foresee or wish to occur as a result (you decide) and we pay for all of those unintended consequences ultimately with a loss of more of our liberty.
I would rather have protection from government like our Founders intended when they drafted a Constitutional Republic and included a Bill of Rights.
No Mr. President, I don’t think I want your help!
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