Not surprisingly, Paul Krugman continues the partisan line that anyone who thinks that Obama's policies have anything to do with the pain at the pump is being paranoid. This is quite rich, especially given that Democrats en masse are claiming that it all is the work of those dastardly speculators.
And even though Krugman the economist should know that blaming speculators is like blaming wind for a tornado, we see that he keeps silent, which makes me wonder if he really believes this nonsense -- or if he is being cynically quiet. Either way, it seems that he is endorsing paranoia, or at least paranoia that is partisan in nature. (Gee, what happens when oil prices fall? Does that mean that speculators are taking a day off?)
Of course, what is a Krugman column that does not make excuses for Obama? During the campaign, Obama said that policies he wanted to put into place would cause energy policies to "skyrocket." Krugman says that the term was "unfortunate," although I doubt he would be so gracious to a Republican or to someone like Ron Paul.
Then there is the matter of Obama's energy secretary, Steven Chu. This is the same Steven Chu who before taking office declared:
“Somehow we have to figure out how to boost the price of gasoline to the levels in Europe”Chu conveniently claims he does not believe that now, although I doubt he is telling the truth. Like so many other Progressives, Chu believes that Americans should be forced into a lifestyle that people like Chu, Krugman, and Obama have no plans of adopting for themselves.
Then there is the small issue of the dollar and the fact that oil prices worldwide are denominated in that currency. The Ben Bernanke Fed is showering the world with dollars (although Krugman believes not enough dollars), so we should not be surprised that when the Fed deliberately engages in inflationary policies, that energy prices -- and other commodity prices, for that matter -- are going to go up.
Not surprisingly, Krugman calls all of this "paranoid." When people take Obama and his administration at their word that they want to force Americans out of fossil fuels (which Obama has vilified), and then the results create real economic pain, then suddenly we are supposed to believe that whatever Obama and his minions have said is irrelevant.
Once again, we see Paul Krugman abandoning economics for partisan rhetoric. No, we should not be surprised. Remember his claim that because Grover Norquist had once said that we should reduce government to a size where it can be "drowned in a bathtub," therefore all Republicans are wanting to do the same? Yes, the Bush administration was trying to reduce government. And I have a bridge in Brooklyn to sell to Krugman.