Paulson is wrong on oil – it is the failed Bush administration policies on free trade that caused the oil price to soar
Kartik Punaskar
Jun. 1, 2008

U.S. Treasury Secretary Henry Paulson says there is ``no quick fix'''' to high oil prices because it is an issue of supply and demand.

``I don''t see a lot of short-term answers'''' on high oil prices, he told reporters on Sunday during a visit to the tiny Gulf nation of Qatar. There is ``no quick fix.''''

He is wrong on oil price. People like him in the Wall Street and the Bush Administration are responsible for the spike in oil price.

Let us start with outsourcing. When Bush Administration’s trade representatives visit India or china they blast these countries on buying more from US and making sure currency manipulation is stopped. But nothing happens. India and China just do not get it. People in India and China have the notion that in US and Europe money is freely available. They can afford to lose jobs and keep buying Indian and Chinese products at an inflated price.

Bush Administration and people like Paulson controlling the Wall Street never understood that transferring money to the Indian and Chinese Government controlled banks can create artificial inflated buying power. Both India and China have used the export revenue (outsourcing) and the foreign direct investment into subsidizing the oil price.

Chinese and Indian Government owned and run oil companies are losing in excess of $400 billion every year to subsidize oil and gas for native Indians and Chinese. Where is this money coming from?

You guessed it right – right from US consumers and businesses in the name of outsourcing.

India did not have price hike in gasoline in the last eighteen months when gas price soared from $2 to $4 in US. Indians are busy buying $2000 car and achieving American dream consuming fuel at a subsidized price.

Who really pays for this kind of subsidy? The American common people are paying for it. Who is responsible for such lack of common sense? Mr. Paulson and his beloved Bush Administration is not only responsible but they actually still defend the biggest blunder they made in the name of free trade. They never understood ‘you cannot have free trade unless labor costs are normalized through removal of artificial currency manipulation of these countries.’

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