High Gas Prices?

Will Collier explains why. You should read the whole thing. Don't be surprised when the light bulb goes on in your head. It really is this simple.

It must have looked so simple from Barack Obama’s rarely visited Senate office, or Steven Chu’s comfortable digs at Berkeley: if only we stopped taking advantage of all those nasty fossil fuels, everything would be better. Three years ago, when then-Senator Obama was dismissing high energy prices as just another good reason for more government handouts, and Chu was insisting that Americans ought to pay European prices for gasoline, all they heard in return was applause from their core constituencies — academics and the media.

Unfortunately for now-President Obama, the reality of $4-$5-a-gallon gasoline is a much tougher sell to the general public. He’s put himself to work spinning the line that “speculators” are at fault for high prices, but the actual explaination is far more prosaic. Limited supply plus growing demand equals higher prices. That’s a formula so simple, even a community organizer should be able to understand it.

The only speculators operating here are Obama & Bernanke.