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Posted on 02/25/2011 5:07:11 PM PST by Kaslin
Energy Policy: While we sit on abundant oil and natural gas reserves, prices at both the wellhead and the pump are rising on fears of spreading Mideast turmoil and short domestic supply. But then, maybe that's the plan.
The silver lining for this administration in the gathering storm over the Middle East may be what it's doing and may yet do to energy prices. The average price for gasoline jumped nearly 12 cents a gallon last week to $3.287, according to AAA. But at the White House, that's not necessarily bad news.
Oil has surged to 2 1/2-year highs as the chaos in Libya chokes that nation's exports. Yet among the "full range of options" the Obama administration is considering as the Libyan crisis festers, and the lit match of discontent gets perilously close to Saudi oilfields, ordering the full resumption of domestic oil and gas production is not one of them. Why?
Energy Secretary Steven Chu has said that "any disruption in the Middle East means a partial disruption in the oil we import. It's a world market, and (a disruption can) have real harm on the price." And so, we would think, would the orchestrated and carefully planned disruption of domestic supply by this administration.
(Excerpt) Read more at investors.com ...
OK.
———We owe it to places like China who will not find the intentional devaluation of their dollars a “friendly” move.-——
That seems like a reasonable thought.
But....... they used the $$ to grow their country. Even though there might be some loss, there were historically overwhelming gains.
All things, that is all political and sociatal and business gains considered, it might not have been a bad deal for China.
>>All things, that is all political and sociatal and business gains considered, it might not have been a bad deal for China.<<
Yeah, but if all that was just a bubble for china, their position after it pops is worse than before it was created.
Uh, yes.
———if all that was just a bubble for china, their position after it pops is worse——
There are risks to be evaluated and accepted and rejected and...... then there is the euphoric ride. The cost of the ride is inconsequential to the thrill
Wouldn’t doubt. That he doesn’t care what the price of gas is ... after all he doesn’t pay for it!
I agree with you, but what's scary to me is that my adult nephew thinks Obama's great.
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Not quite true. While China does own something on the order of $800 billion of our debt, they've actually started whittling it down (as our debt has skyrocketed). Similar for other foreigners, as they have little extra money to invest in anything lately. Notably, the largest single owner of US Treasury debt is the Federal Reserve, with something like 37% more than the Chinese. Banks own the Fed, but the federal government (i.e. us, our kids and grandkids) has been bailing them out like crazy for the better part of the last 3 years...so guess who owns that debt - you, me and everyone else. Oh, and a lot is held by US-based insurance companies and pension funds - again, US.
The Fed (us) owns so much because they're already monetizing the debt - that's what QE2 was all about. Inflation caused by monetization of the debt seems like an easy way out, but it is really an unlegislated tax on every single saver. Unlike a severe recession or depression, which is very painful but leaves a lot of people and businesses with the funds to buy assets cheaply and make lots of money when the economy recovers, inflation destroys all accumulated wealth (except certain commodities). If you like inflation, take a gander at what it did to Weimar Germany or Zimbabwe - they're economies were utterly destroyed, leading to despotic rulers. Sometimes, I think that this is exactly the plan - it is all about power. $8 gas or anything close to it will destroy the economy, as it is impossible for people or businesses to adjust quickly enough to survive economically. People who are laid off because their companies aren't making sales (since their customers are spending so much more on gas) don't pay taxes, don't buy much from other businesses and actually suck up (now non-existent) government money for food stamps, unemployment, etc. They also don't make mortgage or rent payments, nor do out-of-business companies, leading to further pressure on the (already bankrupt) banking system. In short, an economic meltdown, of which we got a small glimps 2 1/2 years ago. It'll be worse this time, both because of higher gas prices and because all of society is loaded down with even more debt than we had then.
I wonder how much food our petroleum-dependent farm industry will produce if gas (and, presumably, diesel) more than double from here. I wonder how the trucking companies will be able to afford to ship it across the country, and how the stores will pay to keep all of the lights and refrigeration units on. See what I mean about it being worse than last time, about it being a meltdown.
If food production gets creamed by high input costs like this, you'll have food riots here - and then I wouldn't give $0.02 for the life of any politician who has ever voiced an opinion or voted to shut down oil, natural gas, coal and nuclear production. I'm not advocating such, mind you, but when people are completely pissed off because they can't feed themselves, those in power usually suffer (just ask Louis XVI and Czar Nicolas II - oh, wait, you can't - they were executed by some of those pissed off people.
The question is, “what is his end game?” Anybody??
United Socialists of America.
I can only conclude that Obongo Bozo has declared War on the United States of America.
He must not be allowed to prevail.
We the People are obliged to do everything we legally can to ensure that he fails.
Is it 2012 yet?
i'll say it again, for people making $8 or less, means in many cases it will cost them two hours pay every day to get to work and back... how long can that go on???
Last night (9 PM) regular gas at Kroger’s was $3.28, tonight at (6PM) same station, $3.45
Most of your post speaks to why I bought an entire finger of a plateau in central KY two weeks before Urkel was elected. it’s only ~13 acres, but it’s 80’ above the valley, has a natural well and we could be completely self sufficient there.
And I invest in junk silver.
By the way, do I think the corruption is all one sided? Not hardly, there are scads of political snakes in both parties....greed.....follow the money. BUT, we've never had a firm ideologist in the white house before either...I sure hope none of you are falling for “ oh, he's moving more to the middle”....don't listen to what is said, rather,watch what is being done.
If inflation soars, people on fixed incomes will be further squeezed. We still have to pay rising taxes to support the teachers and municipal workers.Still no COLA raise for SS recipients and federal retirees even tho govt knows there is inflation because this is justification for Post Office raising rates, a 1.7 inflation rate. Govt Postal Regulatory Agency just improved raise due to inflation. But govt says there is no inflation to deny SS recipients. Liars, thieves.
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