This graph says it all.
Is our president really responsible for the
increase in oil production in America?
Tuesday, March 13, 2012
The only thing that can bring down the price of oil is universal peace on earth and a contraction of the national debt. Does anyone think either of these two things will see the light of day any time soon?
You see, the price of oil is set on the world stage. It is too big for the US government to manipulate. There are two things that this administration can’t do – raise the price of homes in the US and reduce the price of oil.
The home mortgage meltdown that caused the Great Recession led the Fed to inject record amounts of money into the economy. With home prices falling, the massive increase in money supply has not lead to overall inflation, yet. But, the inflation that really counts – the things we all have to buy – is going up.
We have to buy food, clothing, health insurance, medicine, schooling, gas, stamps, air travel. All of these are going up. Computers and big screen TV’s are not going up. Big deal.
So, this administration was able to prime the pump and get the stock market to increase in value. Happy days are here again right?
Wrong. For every dollar that is printed (or electronically created) all the existing dollars are worth less. Worth less means it takes more to buy something – when that something is oil – we pay more at the pump and the average guy suffers.
The average guy suffers. He does not like to suffer and he will get off his butt and try to do something about it. That something will be vote – vote for whomever is not currently in charge.
Hugo Chavez knows this relationship of oil/gas price and political survival. That’s why he just makes the price of gas artificially low. Low gas price = happy people = reelection.
The question is, will this president try to do something drastic about the price at the pump. Well, how about the release of the oil in the SPR. That would be an attempt at a cheap fix and no president would consider putting our energy security ahead of his political ambitions – would he?