thoughts on gas rebate checks

One thing struck me about the $100 gas rebate checks. It seems to be indistinguishable from a money laundering scheme. As Mark Felt said, follow the money:

  1. Money comes from tax payers (or China) to the Treasury.
  2. Money is sent back to tax payers to pay for gasoline from existing inventories.
  3. Money is exchanged for X gallons of gasoline at pump.
  4. Money is deposited into Exxon-Mobil back account.
  5. Money is used to pay for new gasoline inventory from existing oil supply at current market prices.

While everyone is focused on the exchanges in steps two and three, the really interesting parts are steps one and four.
While I haven’t been following every part of this story, I am amazed that the Media has ignored two key points: It will not lower gasoline prices, it will not increase gasoline supply. And since the money comes from the tax payers in the first place; it looks less like an energy policy and more like money laundering.