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View Diary: Katrina, Politics and Iraq (173 comments)

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  •  The USA's Energy Price Levee has Breached (none)

    With the Gulf oil pumping and refining capacity off-line, US Prices will continue to rise until they reach equilibrium with world price levels.

    In political terms, this is the most toxic aspect of the slowly unfolding catastrophe. Outside NYC, pump price has gone up thirty cents a gallon in one week, and more and more stations say "no regular, only super." Super starts at 3.09.

    For Democrats, there is a real political danger here. There will be a natural tendency (because it resonates with people who have to fill the gas tanks of their cars and the oil tanks for their furnaces) to connect the suffering in New Orleans with everyone else's suffering at the fuel pump.

    But the truth is that NEITHER party can do much about energy prices given tight supplies and rising global demand, so an unrealizable expectation will be created.

    But saying nothing leaves the problem in Bush's hands. And his approval rating levee had already breached before this. So it is best to work the other issues, watch the water continue to rise around him, and maintain an armed guard to prevent his boys from any more looting in this period of chaos.

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