Originally published September 23 2005
Commentary: Government really responsible for gas-price gouging laid at the feet of oil companies
by Mike Adams, the Health Ranger, NaturalNews Editor
A "Letter of the Week" submission to World Net Daily, by Robert J. Frasconi, suggests that the oil companies should not be blamed for rising gas prices since they are not getting the lion's share of profits, and Frasconi does some math to show how most of the cash is lining government pockets.
Many voices are crying about high gasoline prices and price gouging by oil companies, but I think that most people remain wholly unaware of the hidden and, by far, largest amount of price gouging going on right under their noses.
Recently, Alan Greenspan, chairman of the Federal Reserve Board, spoke at a Fed-sponsored confab in Wyoming.
As he will retire soon, it was the last time he would address this group as Fed chairman.
Using the inflation calculator for the CPI at the Bureau of Labor Statistics, one finds that what $1.00 bought in 1987 now takes $1.72 in 2005.
In other words, through the mechanism of inflation, Greenspan so debased our currency that dollar holders suffered a 72 percent loss of purchasing power during his term as Fed chairman, a mere 18 years.
To demonstrate further the perniciousness of Fed policy, I decided to go back to the inception of the Federal Reserve System in 1913.
This means that for every dollar of revenue, 10 cents in net income flows to the bottom line.
With retail gas at $3.00, Exxon-Mobil makes 30 cents per gallon.
Here in Pennsylvania, federal and state taxes on gasoline come to approximately 45 cents per gallon.
To see his tax, we will have to do some math.
Subtract 45 cents in government taxes, and we're left with an ex-taxes, nominal 2005 price of $2.55.
Now we must take into consideration Gas-Gouging Greenspan's effect.
Keep in mind that Exxon-Mobil employs 105,000 people worldwide and must explore for, produce, transport, refine and market its product.
Government has to do none of these things -- its take is assured no matter whether oil prices rise or fall.
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