If you don’t believe OPEC and Big Oil are in bed setting gas prices, maybe now it’s time to wake up and smell the roses.

Once again we see the fact that OPEC and Big Oil are responsible for price fixing and price gouging. The amazing thing is some analysts are actually trying to blame us, the consumer for what’s going on. I just heard a CNN news story trying to explain why OPEC has decided to cut oil production. The so-called expert said — “No one educated the consumers when it came to conservation. Consumers were told to cut back which would effect gas prices. But, since consumers cut back, OPEC now has to cut back on oil production.”

Say what!? Do these people really think we the consumer are that stupid?

Give me a break. First off, the so-called expert is, in the words of Bill O’Reilly, a pinhead! Where do they dig these guys up from? I have a feeling he could very well be in the pocket of OPEC and Big Oil. To say it’s the consumers fault is stupid, and insulting. Secondly, CNN should be embarrassed for even airing the guys comments. Come on CNN, you should be better than that. Why would you suggest the consumer is stupid? Are you suggesting your listeners are stupid and will actually buy that trash?

Read on …

Flying the friendly skies has been costing more and more for quite some time. Of course if you fly the friendly skies a lot, you also know the skies aren’t always friendly. There are long lines at check in, long lines at security, and long lines while boarding! Then, there’s the fact that for a long time airlines have stopped offering any kind of food or drink on flights. They say it’s all a matter of cutting costs and making it more affordable to fly. Have you checked the price of an airline ticket lately? It’s hardly affordable. Of course since few airlines offer food during flights anymore, there’s always some guy sitting nearby who decided buying some kind of hot, spicy and smelly food from the terminal would be a good idea for the flight. Give me a break!

Now, making matters even worse, many airlines say they’re trying to off-set the high price of fuel, but charging extra, for what should be part of the flight. That’s right, it all started as a way for airlines to supposedly make up for lost dollars because of high gas prices. But, now this is really getting out of hand and it’s time for airline passengers to say “enough is enough.” Many airline carriers now charge for checked luggage, and in some cases they’re even charging for soft drinks, coffee and even that little bag of three peanuts.

But JetBlue has gone even further in the cash-grabbing-ways of airlines by no longer offering free pillows and blankets. That’s right folks, if you fly JetBlue and want to take a nap on a pillow, it will no cost you!

Read on …

In New York State political news, the Independence Party of Monroe County asked for the resignation of Rafael Colon from his chairman’s post. He agreed to the request, and has resigned. The Executive Committee of the County party asked for the resignation of Colon and his wife after reports surfaced that Jack Davis, the Democratic Congressional candidate for the 26th District, paid Blanca Colon $5,000 in consulting fees. On the surface one might say, “So what.” But, here’s the catch, According to Davis’ campaign manager, the goal of the payments had nothing to do with consulting. Instead, he readily admits that the Democratic candidate made the $5,000 payment with the sole goal of building relationships with Independence Party members.

In other words, mulit-millionaire Democratic candidate Jack Davis from the Rochester, New York area, readily admits he’s looking to buy votes.

Read on …

The Democrats want us to think they’re looking out for us when it comes to gas prices, but their actions certainly tell a different story. It’s been said that actions always speak louder than words. In this case, their actions are speaking loud and clear. The Democrats, whether it’s at the State level or the Federal level, really don’t care that we’re being gouged at the gas pumps.

In New York State, the state with the highest gas taxes of any state, the Democrats consistently vote down any kind of tax break on gas. Time and time again whenever it comes to either the Senate floor or the Assembly floor, New Yorkers can thank the Democrats for the high gas taxes because they vote down any measure to lessen the tax choke hold.

On the Federal level, once again we can thank the Democrats for consistently voting down a decrease in gas taxes. They also vote down any kind of expansion when it comes to drilling in the United States. Once again, we discover the Democrats really don’t care about the high gas prices. Now, in an even more interesting turn of events, we can thank the Democrats for telling Iraq to slow down on western oil contracts. That’s right folks, the very party that likes to scream the War on Terror is really a War About Oil has told the Iraqi government they need to slow down on oil production. The screaming left, that love to say President Bush lied and people died for oil instead of terror, are throwing up roadblocks which would increase oil production in Iraq. Of course an increase of oil production, would bring gas prices down simply because there would be more oil on the market. But no, the very politicians who love to scream that it’s all about oil, are telling Iraq not to supply oil.

Iraq wants to award no-bid deals to Western oil companies to help improve and increase oil production. But, the Democrats want nothing to do with that. At a recent news conference, Democratic Senators Charles Schumer, John Kerry and Clair McCaskill are all telling Iraq to slow down. Don’t do it! A few weeks ago it was announced that U.S. workers were planning to go into Iraq and help Iraq revamp the old oil production facilities, which would of course increase the oil supply. Updated facilities means more oil production. It’s simple economics folks, as supply goes up, price goes down. But no, thanks to the above mentioned Democratic Senators, that may not happen. These Democrats who say they’re looking out for us at the gas pumps even went as far as to call on Secretary of State Condoleezza Rice to intervene in Iraqi oil. However, once again we discover some Democrats have no clue when it comes to the constitution as a State Department spokesman said the U.S. is not at liberty to interfere in matters of the Iraqis arranging contracts with outside sources.

So, the next time you hear that the price for a barrel of oil has hit yet another record high, you can thank the likes of Schumer, Kerry and McCaskill. The next time you hear that gas prices have hit yet another record high, you can say thanks to those Democratic leaders. The next time you have to decide whether you’ll buy a gallon of gas, or a gallon of milk, you can send a great big thank you note to Schumer, Kerry and McCaskill. While you’re at it, maybe you can ask them for a few extra bucks so you can buy both a gallon of gas and a gallon of milk.

Hey even better, the next time you head to the voting booth to pull that lever electing a Senator to office, maybe you should think twice and ask how much that vote will cost you in your gas tank.

Just my two cents,
Dr. Rus

So, just who’s in bed with whom here? Big Oil, that would be the “BO,” are probably sending a lot of thank you notes to the GOP today. Or maybe they’re just writing great big campaign donation checks to Capital Hill Republicans. Why you ask? Thanks to the GOP, the BO will continue their price gouging ways, sticking it to the consumer at the gas pumps.

The Senate voted 51-43 to impose a windfall profit tax on the nation’s five leading oil companies in order to ease some of the pain consumers are feeling at the pump. The outcome of the energy bill was far less than the 60 votes necessary to overcome a promised GOP filibuster. As a result, the legislation is effectively dead. If the measure had passed, it would have taxed the “unreasonable profits” big oil companies are now raking in on the backs of the consumer at the pump. It would have also allowed the federal government to clamp down on oil market speculation, which is one reason for the soaring prices of crude oil. In other words, it would have started to clamp down on the obvious price gouging at the pumps now going on by big oil.

But alas, nothing will change. The big oil companies continue to laugh all the way to the bank in the midst of their monopoly. They will continue receiving billions of dollars in tax breaks from the government, and they will continue to pad their bank accounts. The government had an opportunity to start addressing the big oil monopoly, but instead, they did nothing.

I guess in the end we need to thank the “Good old Boys” in the “Grand Old Party” for once again forgetting about the little guy. Instead, they’re sticking up for the big guy who in turn give millions of dollars to their fund raising campaigns on a yearly basis.

Just my two cents,
Dr. Rus

New York State lawmakers approved the rise in the maximum penalty for price gouging from $10,000 to $25,000. That’s in addition to restitution for aggrieved consumers. Has the price gouging penalty ever been used before you ask? Yes it has. The New York State Attorney General’s Office sued three gas stations in 2006 for increased prices of 25 to 72 percent immediately after Hurricane Katrina.

Imagine that, a penalty for price gouging. This New York State news came just ahead of the weekend news which said gas prices hit yet another high, breaking the $4 dollar a gallon nationwide average. Today economist Mark Zandi of Moodys-Economy-dot-com says there’s no end in sight to the price hikes. Zandi says, “We’ve gone from $3 dollars a gallon at the beginning of the year to now $4 dollars a gallon nationwide. If oil prices stay where they are, we’ll be at $4.50 a gallon by July 4th.” Meanwhile energy analyst Peter Beutel at Cameron Hanover says, “If this continues, it’s very possible that we’ll seen even $5 dollar a gallon gas before the summer is out.”

When will this madness stop? At some point the bubble has to burst here and gas prices will start to drop. Or will they? I always find it amazing that even when the cost for a barrel of oil goes down, gas prices seem to stay the same, or they keep going up. If that’s not price gouging I don’t know what is.

But here’s another amazing piece of information to keep in mind. While I do realize gas station price gouging can be a problem and that’s why New York State enacted the price gouging penalties. But, reality is this, gas stations make very little profit when it comes to selling gas. Who’s making the money? We know who and we’ve pointed at them many times before. It’s the big oil executives. They are the ones who are aggrieving consumers these days. But, time and time again, nothing happens to the monopoly known as big oil. Instead they keep spinning their web of lies and for whatever reason, politicians keep believing that they’re telling the truth.

Here’s an idea, maybe New York State, and any other State with similar laws about gas price gouging, should all file lawsuits against the monopoly known as big oil. Maybe then both the federal government, and big oil, will figure out that consumers are sick and tired of being held hostage by their big money making machine.

Just my two cents,
Dr. Rus

The Senate is asking that very question - Is there an Enron type scandal going on in big oil? - Some of us have been asking that question for ages. Some of us have figured out that’s pretty much what is going on. Big oil is nothing more than a monopoly and it’s pretty obvious they do a lot of price fixing, which goes hand in hand with price gouging.

The sad thing is, if the government holds true to form, the Senate will bow down at the altar the big oil executive excuses. That means nothing will change, nothing will happen and we the consumer will continue to be price gouged at the pump while the oil execs continue to pad their already inflated bank accounts every day. I find it amazing how the oil execs manipulate their excuses every time it’s pointed out that they’re making record profits while the consumer suffers. I don’t know about you, but I’m to the point where I don’t believe a word they say. It’s time to break up the monopoly, and it’s time, if it is like Enron, to send a few of these oil execs to jail.

Just my two cents,
Dr. Rus

Oil execs are back on Capital Hill responding to questions about high gas prices. It’s kind of amazing to sit and watch all of this going on. Many politicians recieve huge donations from oil execs so I’m sure they’re feeling rather uncomfortable about grilling the holders of the gas nozzle. On the other hand, other politicians are listening to what the people who voted them into office are saying they’re doing their best to bring the oil prices down. But, reality is, it’s like watching a fancy two-step dancing during a tug of war.

One of the key questions whenever the subject of high gas prices comes up has to do with profits. In the midst of the consumer paying higher and higher prices at the pump, oil execs continue to rake in record profits. They’ve never been able to answer the question of why. If anything they skate around any kind of real answer. Reality is this, gas prices keep going up, oil execs keep getting richer. The bottom line is, OPEC and the oil business is a monopoly. As long as they continue to hold the purse strings, and have no government regulation, they will continue to hold the consumer, and the government, hostage. They know the government has no teeth when it comes to making them stop their gas gouging ways, so why should they care. If a gas station owner starts price gouging at the pump, he faces fines and possible prison time. But when the oil execs price gouge, nothing is done.

What came out of Capital Hill yesterday about made me fall off my chair in disbelief when I heard it. Once again when pressed about the fact that gas prices keep going up while the execs make record profits they responded in a different way. This time around they said they’re not making record profits. As a matter of fact, one exec said, “we only make a few cents per gallon of gas.” Excuse me!? If that’s the case, why are you still lining your pockets with gold? The exec then said there’s an oil shortage. Come on, give me a break! An oil shortage has brought us to this point? I don’t think so. Once again this just proves that the oil executives simply don’t care about what’s going on. They’re price gouging and they know nothing will be done. When pressed into a corner, they then fear-monger about oil shortages, which no one else is talking about, to make excuses for why they are laughing all the way to the bank.

Or….

Could it be some politicians have gotten the ears of the execs who want drilling here in the States? If they start saying there’s a shortage and more drilling needs to be done, it could be pushing an agenda of drilling here.

Now, before you think I’m against drilling here, I want to say I am not against it. I’ve always wondered why we’re paying other countries for oil when it’s right here in our backyard. But, this whole scenario does make me wonder if there’s an underlying agenda for both the politician and the oil exec here.

Just something to make you say….Hmmmmmmm…

Just my two cents,
Dr. Rus

It is no secret that gas prices keep going up, and up, and up, and up. Of course many government officials are trying to figure out how to bring the gas prices down and I’ve already addressed that issue in earlier blogs. Today I want to applaud some lawmakers, and also point out some flawed thinking of others.

First, lets give a round of applause to lawmakers who are trying to bring the prices down. Many are suggesting a suspension of gas taxes on both the federal and state levels. In New York State, Senator Joe Robach is the latest to call for such a suspension. The Senator is calling on New York State Governor David Patterson to suspend the state gas tax from Memorial Day through Labor Day. Senator Robach said such a suspension would take 33 cents off the current price of gas. Then, you link that with the seven cents of sales tax that’s already capped, consumers would instantly see a 40 cent savings at the pump. The Senator went on to say, “It will be immediate relief as the average car with an 18 gallon gas tank would save $7.20 on each fill up.”

I say, bring it on! That extra 7 bucks will be better spent by me than by the government.

Now, lets address some flawed thinking here.

Some are concerned that cutting the government tax portion of gas sales will effect how the government balances their books. They fear cutting taxes will mean less money for the government, and then they won’t be able to make ends meet. First off, when was the last time the government made ends meet? If normal people balanced their household budgets like the government balances their budget, power would be cut off, cars taken back and homes foreclosed on. Isn’t it amazing how that’s already going on, but even though the government has no clue on how to balance their books, no one puts them out of their homes.

Secondly, the only way cutting the gas tax could effect expected government revenue to make a budget work, is if government leaders were already in bed with the oil companies when making a budget. (Of course that may not be too far off the mark.) Lets think this through for a moment. The government sets the budget on projected income. However, unless they were in on the recent record breaking gas price mark up, there’s no way they could have planned for an unexpected winfall of income from gas tax money. In other words, unless government officials worked the budget with a projected gas tax on a $4 dollar, (or more) gallon of gas, they’re not losing out and do not have to fear a cut of the tax, cutting into their expected income.

Is the government effecting the high gas prices we’re seeing right now? To a certain extent yes, but it has nothing to do with the thought of lost revenue to make their budgets work. For some time now the federal government has stockpiled oil for future shortages. As a result, as they buy up oil to put away for a rainy day, the price of oil continues to go up because suddenly there’s a stockpile that’s not on the market. Could it be this line of thinking needs to head back to the drawing board? Maybe.

Whatever the case may be, we the consumer, are feeling the pinch at the pumps each and every day. But now the pinch is not only felt at the pumps, now we’re feeling it at the grocery store and pretty much every other aspect of life we can think of. I’ve said it before, and I’ll say it again, it’s time to regulate the monopoly known as big oil companies and realize the only ones laughing all the way to the bank, are those lining their pockets at the top of the big oil companies. Could this be likened to an Enron scandal? Just a thought to make you say…”Hmmmmmm…”

Just my two cents,
Dr. Rus

A couple interesting news stories rise to the top of the pile for today I thought I would comment on here.

1) Senator Clinton Threatens to “Obliterate” Iran
In a recent interview on ABC’s Good Morning America Senator Hillary Clinton said she would do whatever is necessary as President to prevent Iran from threatening Israel with nuclear weapons. Leaving no doubt how she would react, the Presidential hopeful said - quote - “In the next 10 years, during which Iran might foolishly consider launching an attack on Israel, we would be able to totally obliterate them.”

Ouch! Obliterate is a pretty strong word don’t you think. This comes from one of the Democratic Senators who’s been all over President Bush for having U.S. troops in Iraq as we fight terrorism. Let’s not forget, the terrorists attacked New York City on 9-11. Isn’t New York State the very state the good Senator Clinton represents? Hmmmm, I guess she’s more concerned about Israel’s safety than the safety of her own people here in the United States.

2) Gas Prices High - Government Takes Aim At Automakers
It’s no secret that gas prices hit new record high prices pretty much everyday. Something needs to be done. Congress had a sit down with the rich oil company execs who are making money left right and center, but still say gas prices need to keep going up. I guess they want more money in their pockets.

So, what does the government decide to do in the midst of all of this? Instead of taking on the price gouging oil companies, they instead take aim at car manufacturers. That’s right. Instead of telling the oil execs to cut it out, the government has told car manufacturers they need to start producing cars that get 36 miles to the gallon and trucks that get 29 miles to the gallon by the year 2015. Now first off I want to say I’m not against more gas efficient vehicles. But, this seems a little silly as government officials say they demanding the car manufacturers to make the changes because of high gas prices.

What a minute. Here’s an idea, lets go after the people who are driving the cost of gas up, not the people who are making the cars.

Just my two cents,
Dr. Rus