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Nov. 3, 2005 - Rush Limbaugh Program
36:04
November 3, 2005, Thursday, Hour #2
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Hey, folks, I don't know if you know this or not, but Scooter Libby pleaded not guilty.
Somebody sent me a no letter today.
Scooter pleaded not guilty.
I went, no.
You mean he didn't walk in there and confess?
It's big news on the cable networks.
Scooter Libby pleads not guilty, and we get six hours of analysis of what that means.
Greetings, my friends.
Welcome back.
Great to have you.
Rush Limbaugh.
Lots still to do.
I want to talk about these two pieces that I've got today suggesting the CIA and Joe Wilson need to be investigated.
Oil prices I have come out and attempted to not defend, but to explain it explain that that there may not be as much gouging going on when it comes to uh gasoline prices people think.
And surely there's some.
I mean, I I'm not an idiot.
I I'm not naive, but but the idea that there's some grand conspiracy that sets gas prices on a daily basis based on what the oil companies think they can get away with uh simply doesn't hold up.
I got a great piece here by Alan Murray that will that will buttress points uh that I tried to make here uh in my opening monologue.
But we before we get to all that, and we've got your phone calls.
Uh we got the Rosa Parks funeral.
And we know one thing had happened, and I've I've got hold of a piece of tape here, something else that happened during the funeral yesterday that uh I don't nobody watched the whole thing.
I mean, it was seven hours, uh, and I don't know that anybody listened the whole thing, so you may not have heard this.
I hadn't either, but before we get to that, Bill Clinton, just if you're just joining us.
Seems I've heard this before.
Has Clinton not told this story before?
It's I I it's hard to remember.
Uh but anyway here's Bill Clinton uh during his eulogy for Rosa Parks yesterday in New Fallujah.
I remember as if it were yesterday, that fateful day, 50 years ago.
I was a nine-year-old Southern white boy who rode a segregated bus every single day of my life.
I sat in the front, black folks sat in the back.
When Rosa showed us that black folks didn't have to sit in the back anymore, two of my friends and I, who strongly approved of what she had done, decided we didn't have to sit in the front anymore.
Oh, what a guy, what a guy, what a guy.
Let me quickly go to Dave and Orlando, because Dave's got the perfect take on this.
Dave, welcome to the EIB network.
Oh, he just keeps giving, doesn't he?
What's he saying?
What's he saying there?
He is not saying that uh that he's behind Rosa Parks, who, by the by all that she is a great woman and she deserves all the respect our country can give her.
He is saying I'm at least as good and I'm probably better.
No, I'm definitely better.
You just have to look closer.
That's exactly right.
That's an excellent point.
Uh Dave and Orlando nails it.
With this story, Bill Clinton's pathology is clear.
He goes to the story where Rosa Parks goes to the funeral where the whole story is Rosa Parks.
I mean, yesterday the story's Rosa Parks, as it should have been, but Clinton has to make himself the story.
He has to basically say, I did the same thing.
She did.
I was only nine.
I was only nine years old.
But my friends and I, when we saw what she did, we immediately decided we're gonna sit in the back of the bus.
So he's he's he's he's telling these people, hey, Rosa had nothing on me.
I'm just as moral, I'm just as good as Rosa.
I was only nine.
Here's what else happened at that funeral yesterday.
Dearly beloved, we are gathered here today to remember Sister Rosa Pops.
I'm Sydney Sheehan, and I want everyone to listen to what I have to say.
No, no, not uh uh send it.
Send that I've been waiting all week for the.
I'm handcuffing myself to Rosa Park's casket until Hilary tells the truth.
We we we don't have that much time.
Tell the truth, Senator Clinton about the law in Iraq.
Send it your 15 minutes ago.
Tell the truth.
Cindy.
Tell the tr As I say, having more fun than a human being should be allowed to have Rush Limbaugh, the excellence in broadcasting network.
We are at 800 282882, and the email address is rush at EIBNet.com.
Some of the other things coming up on the program today.
Joe Biden says there are too many elitists in the Democratic Party.
They are responsible for uh the whole party being looked at as unpatriotic and out of touch with America.
And this headline in the Washington Post today, Texans gear up to decide on gay marriage.
Uh Gay marriage advocates are running a phone bank operation in Texas, telling people that they call, hey, if if if if gays are not allowed to marry, this new law is not going to allow anybody to marry.
Men will not be able to marry women if this new law is got all kinds of people all shook up.
So we'll tell you about that.
Here's the Alan Murray piece, and he's bouncing off, and you've heard this, a bunch of people in the news out there suggesting that the uh oil companies arbitrarily set the price of gasoline, uh primarily, but oil as well, uh as high as they think they can get away with it every day, based on nothing other than greed.
The oil companies are greedily setting that price as high as they can every day based on what they think they can get away with.
Murray says that it is unsurprising news that big oil companies had big profits.
ExxonMobil's recent profit margin was up to nearly 9% of sales.
But suppose that Exxon tried to cut that to a nickel out of every dollar instead of nine cents of every dollar by offering to sell crude oil for three dollars a barrel less than the going price on the Chicago Mercantile Exchange.
Refiners around the world would instantly commit to buying the cheaper oil.
Every drop of it by the next day, the world price accrued would be the same as before.
If they tried to lower the price, if they tried to only take uh five cents on every dollar's profit instead of nine, by selling oil three bucks cheaper at the mercantile exchange, it would last for one day.
Suppose the big five oil companies got together, and suppose they agreed to cut retail gasoline prices at their company-owned stations by twenty cents a gallon.
What would happen?
Motorists would soon drain those stations dry, leaving the much larger number of independent gas stations in a position to charge even more.
Meanwhile, independent station owners would file a complaint with the antitrust division of the Department of Justice, accusing the majors of collusive predatory pricing to drive them out of business.
Some of you might say, well, okay, if the if the big five company owned gas stations all lowered their price by twenty cents a gallon, why wouldn't there be a gas war?
Why wouldn't the others just lower the because they'd be selling below what they paid for it and they would lose money.
They couldn't do it.
So the price would be charged, the lawsuit would be charged, hey, they're trying to run us out of business.
If the prices of crude oil and gasoline really rise and fall at the whim of U.S. petroleum companies, why would oil and gas prices ever fall?
Why would they ever go down?
Texas crude oil fell to twelve dollars in February of 1999.
Twelve dollars in February 1999, just six years ago.
Was that because oil companies suddenly became less greedy?
I can imagine some of your reaction, yes, Russia's not setting us up.
They're just making us think that we're that they're not the bad guys that they are.
Yeah, they lower prices now and then they respond to public pressure, Rush.
You know what if they could keep the price up, they would.
Well, there's nothing stopping them from keeping the price up, folks.
Not that if they really wanted to do it, uh but even then they wouldn't be able to, that's the whole point.
Let me let me let me continue.
USA Today had a recent headline, average U.S. gasoline price tumbles to $2.48 a gallon, noting that gas prices had dropped by at least 55 cents.
The price of crude oil dropped 9.8% in October.
The Dow Jones stock index for oil and gas companies fell 9.2% on the futures market, natural gas prices fell 18% in a single week.
So all these people who think that there's a mass conspiracy have to come up with a new theory.
And so the new theory is that while prices rose because of some inexplicable hurricane of greed, they subsequently fell because the oil companies have been scared into lowering the price of oil.
And then they come out and say something like, well, you know, the worldwide demand for oil is the same today as it was eight weeks ago, but oil prices are declining, so what gives?
It has to be that the oil companies are afraid.
That's what gives.
The oil companies are responding to all the anger of millions of Americans and they're buying less fuel.
Meaning consumers are buying less fuel because they're mad.
We're not going to pay your gouge prices.
Oh, really?
Is it work that way?
If millions of Americans are buying less fuel, how could worldwide demand be the same today as it was eight weeks ago?
So for every theory that is spun to support this conspiracy out there, you can nuke it.
So if you say, well, look, there's no reason the price should be fluctuating because worldwide demand has not changed in eight weeks.
But then you also say Americans are so teed off they're buying less to send the oil companies a message, and that's why the oil companies are lowering the price because they're afraid.
Well then how can you say that there hasn't been any change in worldwide consumption if your theory is that people are buying less because they're mad at the gas companies, the oil companies.
Well, then you gotta spin your way out of that.
Say, well, worldwide demand.
We're talking worldwide demand.
Worldwide demand has to be uh entirely irrelevant unless domestic prices of oil and gasoline are set by supply and demand in worldwide markets rather than by corporate caprice.
I mean, worldwide demand, we're talking about U.S. oil companies gouging U.S. uh consumers, and yet, well, that that that that demand, the equal demand over eight weeks was worldwide.
Well, what's it got to do with what's happening in the United States?
Yet there are people who continue to say the truth is the American oil companies set the domestic price of fuel based upon what they think they can get away with.
Well, if domestic oil and fuel prices are set by domestic oil companies, why even mention world demand?
What does world demand have to do with anything?
If what does any demand have to do with it if the price is being set by the greedy oil companies just because they can get away with it, they think?
What is what does supply and demand have to do with anything then?
Why even talk about demand being less, people using less because they're mad?
What does all that have to do with it anyway, if the oil companies are by fiat establishing whatever price they think they can get.
And by the way, if if if only American oil companies are fixing prices up or down, depending on their mood, then why are those prices identical both here and abroad at British petroleum and Royal Dutch Shell?
Well, bet's part of conspiracy rush as to keep everybody from finding out what they're actually doing.
Of course they get on the phone with their buddies over there and make sure the prices are the same so nobody can accuse them of doing what they're doing.
The fact is that nobody could possibly know whether or not worldwide demand for oil is the same today as it was eight weeks ago.
The International Energy Agency estimates that world demand by the month and its latest was for September.
Uh and they've said that the Chinese apparent demand is again revised down.
Uh it the idea that with so many market forces that are at work here, the idea that those are irrelevant only when it comes to oil.
Only when it comes to the oil companies have found a way to beat supply and demand.
Boy, we got to find out how they did it because these guys have just figured out how to beat capitalism.
They can beat supply and demand.
It doesn't matter what demand is, doesn't matter what supply is, they can raise prices, lower prices without regard to anything other than their own greed and their own attempts at manipulation.
As I mentioned to you in the last hour, if you sell your house for much more than you paid for it, you will receive a windfall profit.
When you take that windfall from selling your home and you go shopping for a new one, though, you're gonna discover prices of replacement homes have gone up too, which may explain why the Senate has not yet contemplated imposing an extra windfall profits tax on windfall homeowners.
They're all they are contemplating this on the oil companies, windfall profits tax on oil companies.
Let them try it when you sell your house and see how you like it.
I'm just telling you, think about it that way.
You see how you like it.
You've owned your house for ten years, you bought it for dirt back then, you're gonna sell it for gold today, and they're gonna call you a windfall profit, but you still gotta go take whatever you get on this house and buy a new one at today's prices.
You're not gonna be that much ahead of the game unless you agree to lower your standard of living and buy a smaller house in a different neighborhood, but yet you're still gonna pay the windfall homeowners tax if these guys ever get hold of that idea.
So I think folks, it's then there's a thing called inventory profit, which I'm I'm running way long here in this in this segment, but it's a great piece.
I'll link to it on the um uh uh website.
It's a town hall.com too if you want to uh try to dig it up yourself.
I gotta go quick timeout back, though, as quick as we can.
Let's go back to the 1980s, folks.
A little question for you.
In the 1980s, you know the difference between a Texas oil man and a pigeon.
In the 1980s, a difference between a Texas oil man and a pigeon was that a pigeon could still put a deposit down on a Mercedes.
A Texas oil man could not.
And I must I must correct myself.
I must, I must take something back.
I I said that there was gouging by the oil companies uh now and then on gasoline.
I said everybody, you have to assume that there's gonna be that.
There was gouging in practically every commodity and product that we buy, but I'm gonna take it back.
I don't think there is gouging by the oil companies uh when it comes to gasoline.
I have the latest statistics here from the American Petroleum Institute.
Right here, my formerly nicotine stained fingers.
Latest figures August of 2005.
Nationwide average tax on gasoline, 45.9 cents per gallon.
Combination of federal and state taxes, 40, let's just round it up, 46 cents a gallon.
The average profit per gallon of tax gasoline by the oil companies is a dime.
The oil companies are making ten cents per gallon of gasoline sold profit.
State and federal governments 46 cents a gallon.
When you talk about gouging, and when you talk about lowering the price and punishing the oil companies, as is always the case of a highly regulated industry, I suggest that you never forget your conservative roots and focus on the real problem, and that's government.
And when your friendly government politicians start talking to you about, well, we need a new tax on oil.
Uh look at all old profits out there.
Well, obscene profit us.
They're just thinking you're mad and they want to get on your good side, thinking they think they want you to think they they hear you.
They are feeling your pain.
So you get mad at the oil companies and they come along.
That's right, oil company gouge you, we're going to raise taxes on oil companies.
Forty-six cents a gallon average nationwide, state and federal taxes.
You notice how very rarely do they ever discuss solving high gasoline prices by reducing their take?
Federal and state governments.
Like in never.
Here's Wayne in Mount Shasta, California.
Hi, Wayne, I'm glad you called.
Hello, Rush Ditto.
Thanks uh for taking my call.
You bet, sir.
And uh I agree with you most of the time.
At this time, maybe I'm just ignorant of the situation.
It seems to me that uh demand could be uh defined as need.
And if the oil companies, if it's costing them the same for a barrel of oil, the same to refine a barrel of oil, ship it to their suppliers and all that to their retailers, and a vacation comes up, their costs are still the same, but gas prices always go up during holidays and vacations because the demand or need goes up.
So it seems that it is an idea of not uh it's a it boils down to instead of calling it greed, let's call it profit.
How much profit can we make off of this situation?
Well, actually, that's not what happens.
What happens is that every spring the gas price goes up, and then the media worries, oh no, how will this impact the summer vacation and driving season?
And suspiciously, the prices always start to fall every May.
You can make book on it.
They start to fall every May going into the summer, and gasoline prices compared to earlier in the year.
You need to answer that.
I'll wait.
No, go ahead.
I'll get somebody else to answer.
All right.
Uh the the the the always end up going down, leading into these big driving seasons.
It's it's a miracle.
You know, it but it uh it it I I make this prediction every year.
I'm always right, but there's always a fit of panic.
Now there's a reason why you think that that the prices go up during vacation.
And by the way, when you start when you start talking about need versus demand, you're getting into a very hairy area here.
We need water too.
And we actually need water more than we need gasoline.
You can live without gasoline.
You can't live without water.
Have you checked the gallon price you're paying for water lately?
You're listening to Rush Limbaugh on the excellence in podcasting network.
Hey, look at this.
Listen to this lead here.
Who is this?
This is uh this is CBS Market Watch with rising oil prices and record oil company profits serving as a backdrop.
The Senate moved one step closer on Thursday to allow companies to drill for oil and gas in Anwar.
All right, now, Snerdley, you've been on my case all day thinking all of a sudden I've lost it.
I'm totally reliable all 17 years of my career.
This past three weeks I have been brilliant on all the political stuff, but now all of a sudden today I've lost it.
People are wondering what's wrong with me because I don't see the truth about big oil gouging.
Now here we have we have oil prices coming down, we've got gasoline prices coming down.
We know that we are too dependent on foreign oil, and yet here is the media.
I just ripped the paper.
This makes me so damn mad.
Here is the media with rising oil prices and record oil company profits.
Saving is a backdrop.
That is BS.
It is not a backdrop.
It is our dependence on foreign oil that is a backdrop for why we need to drill an an war.
It is the fact that we're becoming less and less dependent on ourselves.
We have a problem, and the two hurricanes illustrated the problem.
It turned out not to be as bad as it was forecast to be or could have been, but you never know the next time.
There's no reason why we should not have our own domestic supply of oil.
And here's the media trying to kill it.
And by using this silly notion that the big oil, they just can't get enough.
They're so tasty and greedy.
Why prices are already going up?
Gas prices already going up, and they still want more.
It's just it's it's folks, it is a pack of 100% BS.
Just I really I had three pieces of paper here.
You people watching in the ditto cam see this.
I'm about to reprint these notes that I made to myself in just a second, because I ripped them to shreds.
I was so mad.
Who's next on this program?
Eric in Albany, you're next.
Welcome to the program.
Hi, Russ.
Thanks for taking my call.
I'm a longtime listener and uh converted former Democrat.
Thank you, sir.
Nice to have you on the program.
Don't blow it.
I'm willing to try not to.
I'm I'm calling because I I don't blame the U.S. uh oil companies at all.
I think the conspiracy lies with OPEC and the Arab uh countries that do the drilling overseas.
Um they are the ones who set the price, they are the ones who can lower it when they want to, uh, and also lower or raise uh output.
So I believe it's uh it's a hundred percent on their shoulders, not the U.S. oil companies.
Oil OPEC is clearly a factor because we are so dependent on foreign oil.
Not not to mention all the regulations on the oil companies in this country, where they can drill, where they can't drill, where they can ship where they can't, how many formulations of gasoline they have to refine.
Snerdly.
Snurdly today, well, what look at these profits.
What a profits of 50%.
I can't believe up 50%.
I said you're you're falling prey to I can't believe if it's a political story, Snerdley doesn't get fooled by it.
If it's an oil story, he's like every one of you.
He can get smoked.
Here's how this works: big profits, right?
Reports saying that some oil companies' profits are up 50%, some are up a hundred percent.
It doesn't mean that the big oil companies are getting 50 cents on the dollar.
It doesn't mean their profits 50 cents of the dollar.
It means that if they were earning 7.7 cents a dollar, and they've got a 50% or 60% increase in profit, now they're earning, say, 11 cents a dollar.
Not 50.
What people hear this this well, the profits uh 50% up 50.
It's not 50% of every dollar.
It's this is silly.
Price of price of gasoline's gone from, say, two bucks a gallon to 320 a gallon.
Then 7.7 cents per gallon means that it's earning 40 to 50% because the price has gone up without any change in the per dollar profit of seven cents on the dollar.
If the price goes up, the profit was is going to go up simply whether they have increased their profit margin or not.
The profit margins are going up, but not like these news accounts are making it appear uh that that they are.
But I know why this works, folks.
Before I understood this, I was in the same boat.
I'll never forget back I was I started driving in the mid-sixties when gasoline was 25 cents, 20 cents a gallon, there were gas wars.
And then here came the first shortage, the first contrived shortage, and the price shot up to fifty cents.
And I'm telling you, it was a huge that's that is a dramatic percentage increase on the budget that anybody has to spend driving around.
Particularly a kid like I was, and then I left home at twenty and I'm not making much money, I'm starting out, and I go to Pittsburgh, and then Nixon does it again.
Here come more price controls, and Jimmy Carter comes along, the price is up to a buck before I know it.
And I'm thinking, I I uh I I don't have the m I'm I'm eating Alpo.
I don't even have the money to buy a can open and open the Alpo, and that's what I'm eating.
And I'm sitting, these damned oil companies, and I listened to all these conspiracy theories.
Oh, yeah, those tankers rush, they're sitting right over the horizon.
We can't see them.
Four satellites, of course.
They're out there, they're waiting, they're just waiting.
There's no shortage.
This has all been trumped up big oil making it went through all of this.
And and I know how easy it is to get caught up in uh in all this.
But if you really want to get mad at who's really profiteering on a gallon of gasoline, I gotta tell you the average price of tr uh of the big oil companies, big five, is a dime even now.
That's their profit, a dime.
As of August 2005, that's when the prices were through the roof.
Average profits a dime on a gallon.
Federal and state taxes combined, 46 cents.
John in Palatine, Illinois, welcome.
Nice to have you on the program, sir.
Good afternoon, Rush.
Uh you know, I I've been listening to this discussion, you know, everywhere it's been happening, and you know, it seems to me that there's a fundamental lack of understanding of how the commodity markets play a role in the whole price setting aspect of this.
I mean, number one, you know, uh the suppliers and the producers who take it out of the ground around the world, they have some impact because, as we saw ten years ago, when they oversupply the market, prices drop.
And that hurt a lot of uh I would think more of the independent oil producers, especially in this country.
I know a guy I went to college with used to go out and uh get leases signed uh among people in southern Illinois and Southern Indiana.
And I just drove through there a couple weekends ago, and most of the wells that I could see from the road were not pumping.
And you would have thought that with the price having gone up that uh they would have tried to get those things going again.
But you know, the commodity markets, I I I didn't go and check them, but those things kind of led the storm.
They started going up in advance of the hurricane and they peaked out uh at the time when we were most uncertain.
I know there's that that you're right.
There's so many factors in this.
I even tried to mention that at the time.
When he says commodities market, he's from the futures market.
And the way I illustrated it, um in a I forget what this has to be the past three or four months.
If you if you looked at the at the uh U.S. budget report figures that come out quarterly, you find that the uh uh that the price of a barrel of oil at the time that the public news said the price was approaching sixty bucks a barrel was actually costing us thirty-nine or forty bucks.
That that's what if a barrel of oil uh today's market was bought, that's what it was $39 or $40 yet.
The futures market, which deals obviously with the future, was bidding the price up down the road to fifty or fifty-five approaching sixty dollars a barrel.
These are people gambling on it just like everybody else in the stock market does.
But it was that price that was being reported.
Of course, it has a psychological effect on everybody, but those people are gambling too.
If if if uh if if they're betting that the future price is gonna be sixty and it's not, you know, they take a hit.
If it's if it's sixty or higher, then they're okay.
But All of that has uh has an effect too.
Uh and that's you know, it's its relationship to the actual business the oil companies are in is somewhat uh murky too, but but they're not supposed to have anything to do with it, but you never know.
As as dastardly as big oil is, they probably are the futures market for all we know in a lot of people's minds.
Now it's why why doesn't somebody in Congress, and this is the simple thing to me.
Why doesn't somebody in Congress or in the media or the oil industry calculate all the taxes and regulatory costs at every step of exploration, production, and transportation for a gallon of gas.
Do that.
Find out what it costs to be in this business.
Find out what it costs and what what kind of obstacles you have to face just to stay in this business.
I mean, I it's one of the most if you ask me, the federal government practically runs big oil now as it is with all the regulations, requirements, demands, and restrictions that are placed on it.
But because it is one thing we can't deny, oil is the fuel of the engine of freedom.
Oil is the fuel, and of course, freedom rains, and people it is democracy rains, open markets rain, and fuel is one of these things.
It does get very it is it is a practical need.
It's not a it's not a life-sustaining need like water or food is, but it is a practical need.
Uh it's not something that people can just I'm gonna do with less.
The only way you can do that is go, you know, buy a smaller little car.
But most people are not gonna really affect the amount of driving they do.
They might say they will, but it's it's hard to do it because there's not a whole lot of joy riding going on out there.
Umly when you get a new car and you know, joyride around it a while, but after that, I mean you go where you have to go.
You do what you have to do, and sooner you can finish it the better.
So there's there's not really a whole lot people think they can do to uh to avoid all this.
And so it's it's sort of like the Democrats.
The Democrats owned the country for 40 years.
It was theirs by birthright and by entitlement.
Then they lost it.
And there has to be some conspiracy to explain that in their mind, because they're nothing happened.
They didn't change.
They're still the great people they've always been, great liberal socialists, but somehow the people are not voting for them.
But no, the people are voting for them, just Republicans are stealing those elections.
And they're tampering with the Democrats' vote, and they're coming up with all these oddball ballots like butterfly ballots in Palm Beach, and they're tampering with the voting machines in Ohio.
So people still are voting to Democrats.
People still want the Democrats to run the country, but those dastardly Republicans have found a way to steal every election that counts.
And so they live this fantasy.
And so when there are things out of your control you think out of your control that you cannot explain and they're and they're really hitting you hard, has to be some conspiracy here.
And then it's I g I I'll just say this.
I think if economics were more competently taught at young ages, junior high and high school, and did not remain this esoteric subject that only oddball-looking elitist pinheads on television can explain and understand.
Then there'd be a lot more understanding of this and a lot less controversy about it.
But economics is portrayed as this science that only super IQ, super smart, dull dry balls who sit around with green eye shades and do nothing but crunch numbers their whole lives can explain to you.
And it isn't that, folks, if I can be made to understand this, I'm telling you anybody can, because I, when it comes to math and numbers, I'm I'm not one of these.
I'm like a girl.
Math class was hard.
The only difference is I never played with Barbie.
So I just asked the staff, because I sometimes do this.
This is this you think this making sense to people, because I'm really I am trying to explain this.
I'm not playing devil's advocate, and I'm not running a scam here, trying to, you know, this is not a uh a little rush satire here making you think of all of a sudden going over to the dark side for big oil, and then it'll at the end of the show say, folks, I was just joking.
Uh it's not it's not one of those things.
Uh I know as far as your perspective is like snurklies.
Everything was just fine.
I mean, the price was going up a little bit, uh incrementally enough to be absorbed, and the hurricanes came and All of a sudden.
We were told all these shortages and these distribution problems, my price skyrocketed, and then I find out what even all these shortages and distribution problems, oil company profits are skyrocketing too.
All I know is I'm paying more and they're making more, and I don't understand why.
There's got to be some.
Folks, you can try to understand this economically.
I'm going to give you two options.
Two options to deal with this.
Because you're not, you are not.
You're not doing justice to yourself if you simply accept the notion that big oil is engaged in a gouging conspiracy, that they can set the price of oil arbitrarily, whatever they want it to be, that you are hopeless, that you are powerless, and that they manipulate the price only to manipulate it downward only when the heat gets too hot.
When people are when people are close to figuring out the scam, that's when they all of a sudden lower the price.
Take the heat off themselves.
You're really making a mistake if you buy into that, because once you buy into that and oil, you've got to buy into it in practically every other product out there.
And you've got to ask Lynn Wyatt and Walmart doing it.
Why had Walmart doing it?
And why don't these other people that if big oil can do it, big water can do it, big ketchup could do it.
Um check the gallon price of catch it, by the way.
Gallon price of ketchup is like 14 bucks.
Now you don't buy it by the gallon.
But how much do you think it costs John Kerry's bunch to produce that gallon of ketchup?
And not nearly as much as it costs to produce a gallon of gasoline or a barrel of oil.
Now, if you don't want to go to the process of understanding it all, you can do what I did.
There's another way around this.
It's real simple.
Well, it's not it's it's simple concept.
You simply go get a job that pays you so much money that you don't care what the price of anything is.
So that whatever the price of anything is doesn't matter, doesn't affect you.
But if you can't do that, you better understand rather than living this misnomer, that the the at bottom, supply and demand determines the reactions of the commodities investors too.
I mean, these are these these futures markets are all traded internationally.
It's just like stock is.
So if China and India are using a lot more oil and gas, and if the U.S. is recovering less and less oil and gas due to taxes and regulations, prices are going to go up because they're gonna be less supply.
Here's what you have to understand, folks, and this uh like it, the dime profit per gallon average for the oil companies versus 46 cents of profit for government, and they don't even it's pure profit because the government has not invested one dime.
They just take 46 cents of the next time you talk about lowering the gas price.
Think about the government.
It is the policy of our government.
Listen to me on this.
It is the policy of our government to reduce domestic drilling and drive up the cost of energy.
When the liberals will not let us drill offshore, when the liberals will not let us drill in Texas and Louisiana, where they will not let us drill in an war, what are they saying?
We cannot increase our own supply.
We cannot invest in our own supply.
What does this do?
Our government's policy is driving up the cost of energy.
And all this political propaganda aside, forget it.
The government is responsible for this never increasing price of this product.
And when people get mad, ticked off because of gas lines or significant price increases, they look for scapegoats.
The government does.
So the government now starts talking about taxing oil.
Well, it's not gonna be a new thing.
They tax oil, they tax energy out the wazoo in this country.
All they're trying to do is make you think that they hear you, and that they understand your pain.
They're gonna get even with these big oil guys when they are responsible for the high cost of energy in this country in the first place.
It's like anything else we tell you about conservatism.
If you want to understand where the real problems lie, look to liberalism, environmentalists, and government to sol to solve these problems.
I gotta go on.
Be back after this.
All right, America's anchorman taking a brief break here at the time of the hour, but we will be back.
Lots more straight ahead.
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