Five months into 2008, and we learn:

• It's okay to believe in aliens.
• Scientists got the okay to mix animal and human embryos.
• The House wants to sue OPEC... this'll end well.

Yep, the House wants to sue OPEC for "limiting oil supplies and working together to set crude prices."

The bill, if passed, would subject OPEC oil producers, including Saudi Arabia and Venezuela to the same antitrust laws that U.S. companies follow. Can you imagine the Chavez reaction?

The idea passed 324-84, which means a presidential veto is overridden. "This bill guarantees that oil prices will reflect supply and demand economic rules, instead of wildly speculative and perhaps illegal activities," said Democratic Rep. Steve Kagen of Wisconsin, who sponsored the legislation.

Fortunately, the White House opposes it, saying that "targeting OPEC investment in the United States as a source for damage awards "would likely spur retaliatory action against American interests in those countries and lead to a reduction in oil available to U.S. refiners."

The bill would still be subject to Senate approval.

Here's an idea. If you want to reduce dependence on OPEC, hire engineers and companies that can find domestic oil. Instead, Congress wants to attack OPEC, which can reduce supply and drive prices higher, with an army of attorneys.

Yep, that's a great idea.

I'd love to hear what you think, too. Please leave comments below. Now if you'll excuse me, running with my scissors just became a good idea, too.

I guess if a judgement is entered against OPEC, the USA
will have the excuse it needs
to send in the US sheriff (ie US
Marines) to foreclose on their
oil wells!
In the past,the USA did it with
out a judgement, but in our liti-
gous time, we need to give an ex=
cuse.

The US House of Representatives does not seem to be aware that price-fixing in the Sherman act is a per se offense. No defense resting on the claims that the prices fixed are reasonable, or on evidence that price competition in an industry is excessive and ruinous, will succeed.

The opposite of the per-se-approach is the rule of reason which says that only combinations and contracts unreasonably restraining trade are subject to actions under the antitrust laws and that size and possession of monopoly power are not illegal.

The bill authorizing a lawsuit against OPEC for price-fixing would in part amend the Sherman act.
It provides in part that the cartel would be prohibited when such action, combination, or collective action has a direct, substantial, and REASONABLY FORESEEABLE EFFECT [emphasis mine] […] in the United States.

This is the rule of reason for oil-price-fixing.

The rule of reason, replacing the “per se”-approach, in oil-price-fixing cases, is the first step towards the complete repeal of the immoral antitrust laws.

As Alan Greenspan said more than 45 years ago:
The world of antitrust is reminiscent of Alice’s Wonderland: everything seemingly is, yet apparently isn’t, simultaneously. It is a world in which competition is lauded as the basic axiom and guiding principle, yet “too much” competition is condemned as “cutthroat.” It is a world in which actions designed to limit competition are branded as criminal when taken by businessmen, yet praised as “enlightened” when initiated by the government. It is a world in which the law is so vague that businessmen have no way of knowing whether specific actions will be declared illegal until they hear the judge’s verdict — after the fact.

More here:
In Defense of OPEC
May 22nd, 2008 by Ivo Cerckel
http://bphouse.com/blaze/
honest_money/2008/05/22/
in-defense-of-opec/

OPEC is not the problem.The American public is the problem.
Why should any country sell non renewable natural resources for less than the maximum they can command?
America's response to the 1973 oil embargo was the strategic petroleum reserve and ethanol. They then proceeded to buy huge SUVs throughout the 1990s, and constructed thousands of Mcmansions that are also energy wasters.
The public has been asleep for three decades. Now that they see what their wastefulness has produced, they blame others.They should look in the mirror, and they will see the real enemy, themselves.

What a perfectly preposterous idea! I would think that would only make matters worse.

I love the idea the the US is sueing OPEC.
I am a Canadian form Alberta who drills directional wells for all the big players in the oil sands. As an investor heavily weighted in oil, this is the dumbest thing to date; and theres been lots form our retarded brother from the south; that i ever heard of, this is going to drivre demand for Canadian Oil stocks through the roof and the multiples on these oil sand stocks are going to soar. LOVE it $$$$$$$, make me rich, $300 oil here we come, oh ya, the reason for high oil price is supply, US and Canadain Governments would rather tax the crap out of the Companies and take land away thus chasing investment away, so why would they drill more on our contenent to increase reserves when they can just pocket the profits and buy back there shares. If reserves are not increasing and demand is increasing what do you think will happen. The high price of oil is speculated on FUTURE demand and dwindling reserves, makes sense to me. 500$ oil here we come, how soon for GM and Ford to get there crap together, everyone blames big oil, no one blames Car manufatoruers for inefficient engines thart we have been using since 1901.

Steve Kagen of Wisconsin is pimping for re-election.
After this House vote I have lost all faith in the U.S. Gov. It's enough to make me want to move to the mountains in Montana.

This demonstrates that everything that these pinheads in congress do only serves to demonstrate how
disconnected they are from reality and Truth. Had to be a bunch of lawyers who always come up with the solution of initiating a lawsuit to overcome an obstacle. And how their constituents suck it all up. We have to look like the bufoons that we are. We could try to hide it once in a while.
"The wisdom of man is foolishness with God" is proven to the max.

By deliberately debasing the US dollar through printing money to fund excessive government spending, the dollar denominated commodity of oil is already hitting record high after record high.

The US judiciary is exactly that, a 'US' government body whose laws have little or no impact on other functioning of OPEC nations. All that can result is lowered supply to the US followed by a cut back in supply and diversion to fast growing markets in Asia. Is the American leadership cocky and foolish enough to believe that they can dissolve what is arguably the most powerful cartel in the world through a piece of legislation which most members of Congress will probably not even read before signing? Are they forgetting the level of influence they wield through the investments of sovereign wealth funds in the United States?