With oil at $135 a barrel - up 463% since January 2001, Washington wrings its hands and says there's nothing it can do to lower the price. I think that's nonsense. There are two things that Washington can do today to get the price down: raise interest rates and close the swaps loophole.

What is the role of speculators in the price of oil and other commodities and what should be done to get those prices down? Some argue that oil prices are set by supply and demand. But if that were true, oil would drop because global demand is forecast to grow 1.2 million bbl/day -- and demand in the U.S. is down 300,000 barrels a day -- while global supply is expected to rise 2 million bbl/day.

Perhaps sixty percent of trading volume in oil is due to speculators -- these traders bet on a declining dollar and a rising price of oil. Raising interest rates would help lower the value of the dollar which has lost 70% of its value relative to the Euro since January 2001. Our Fed Funds rate fell from 5.25% to 2% since last August whereas in Europe, their rate is 4% and expected to rise. This difference makes Euros a more attractive currency for investors. So if the U.S. raises interest rates, people will start to buy dollars instead.

I just can't believe it. It's just too funny. Cramer is back-pedaling on Google. I have such mixed emotions about this. I love many things about James Cramer; he gets people interested in investing, he brings up important subjects for discussion, he is entertaining, he is experienced and I feel confident he supports the small investor. All that said, he has really stuck his foot in his mouth this time....or should I say again? This is just hysterically funny, or maybe I'm still laughing at Pam Anderson (Pamela Anderson is a headline - not news - but SIRIus) on Sirius Satellite Radio, another recent Cramer pick --- hmmm? . If I don't stop laughing I'm going to fall off my soap box. Anyway, while there is much to praise about Cramer, over the last six months I think his stock guidance has been full of it. I probably should have just reissued The Cramer "Show" can cost you big!

Yesterday Jon Ogg reported about Cramer's three replacements for Google pointing out that Cramer is becoming tepid about Google (NASDAQ: GOOG) and recommending other technology stocks, as if owning some tech stocks is an imperative of some kind. Why you can't trade into some energy or utility or financial stocks instead is beyond me. In fairness to Cramer he does want his followers (listeners? disciples?) to maintain a diversified portfolio and that would include some technology stocks. Although I think aerospace and medical device companies should qualify, they do not in his view.