Posted on 03/01/2011 3:15:30 AM PST by 2ndDivisionVet
Media reports blame rising gasoline prices on Mideast turmoil, but industry analysts say the real reasons are closer to home -- at the White House and the Federal Reserve.
President Barack Obama's moratorium on drilling and his anti-oil policies continue to rattle energy markets and fuel ongoing price hikes at the pump. And no one -- least of all Obama -- is surprised.
On the campaign trail in 2008, then-candidate Obama called for cap-and-tax policies under which energy prices would "necessarily skyrocket." Studies have since questioned the environmental and economic value of such policies.
Undaunted, the Obama administration canceled hundreds of gas- and oil-drilling leases in Western states. Obama then slapped a series of bans on offshore drilling.
Two federal courts have struck down portions of these moratoriums, but, as with the ongoing implementation of Obamacare (declared unconstitutional by a U.S. district judge), the administration flouts the courts and continues to choke off domestic oil production.
American Solutions, a conservative Washington, D.C., think tank chaired by former House Speaker Newt Gingrich, says Obama's actions have "ultimately led drillers to relocate their rigs (and hundreds or even thousands of good-paying jobs) to other parts of the world, and the long-term impact on domestic production will no doubt be devastating for consumers."
By contrast, the University of Alaska at Anchorage estimates that drilling for oil and gas off Alaska's coast could create more than 50,000 new jobs per year, in addition to producing more than 10 billion barrels of oil and 15 trillion cubic feet of natural gas.
There are another 86 billion barrels of oil in America's Outer Continental Shelf, yet the Obama administration has banned most production there. Not a single new drilling permit has been issued in the United States since last October.
Still, Obama's Interior Secretary Ken Salazar said the government feels "no pressure to hurry its permitting process.”
Ironically, administration policies that drive higher gas prices are helping the very industry that Obama tries to demonize. While rising petroleum costs threaten to tank the U.S. economy, Exxon Mobil's fourth-quarter profits soared 53 percent.
Then there's the Federal Reserve, whose "reflation" policies are driving down the value of the dollar.
In an analysis of recent oil prices, the Wall Street Journal noted, "It's important to keep in mind that oil was already trading in the $85 to $90 a barrel range before the recent irruption in the Arab world. The run-up to that price territory began in earnest last year after the Federal Reserve embarked on its QE2 strategy of further monetary easing."
"QE2" is "quantitative easing, which, in effect, pumps more money into the economy. But in doing so, the Fed devalues the greenback and triggers speculation on things like oil.
The Fed claims that rising oil prices are simply a reflection of higher demand. But, the Journal found that demand is "not enough to explain what has been a nearly across-the-board spike in prices for dollar-traded commodities."
"The Fed will use the Libya turmoil as another alibi, but there's no doubt that oil prices include a substantial [Fed Chairman] Ben Bernanke premium."
Obama's Treasury Secretary Timothy Geithner seems nonchalant. "The world's got a lot of experience in managing the tensions that could come with short-term impact on commodity prices," Geithner told reporters last week. He added, "It's not rocket science."
But since the U.S. consumes about 7.5 billion barrels of oil a year, every $10 a barrel increase costs the U.S. economy about $75 billion. And, notes the Journal, "Since over half of that oil is imported, the benefit flows to foreign producers."
Industry analysts argue that the Fed's monetary policy and the Obama administration's energy policy are the two biggest factors in the rising price of gasoline.
Obama maintains that his "green" polices that impose higher fees and charges on the petroleum industry will "break our dependence on oil."
Energy economists say such a strategy is ultimately counterproductive.
"If the president is truly serious about raising revenue, then he should eliminate all energy-related tax preferences and let all sources compete," said Robert Bryce, a senior fellow at the conservative Manhattan Institute.
You get it; too few do.
“Rising Gas Prices: All Signs Point to Obama”
Frankly, I don’t believe he cares one whit about this.
After all, he and his are getting rides in the gub’mint limos!
I think he cares.
I think he approves.
He’s said as much before.
High gas/energy prices achieves several leftist goals.
“Will we survive as a Nation... I think not... we may survive in one form or another... but this union is broken and the pieces cannot be put back together. Half of America welcomes communism and sharia. I pray that I am wrong and I pray for GOD to actively help save our once Great Nation.”
Like “1856 all over again”, wouldn’t you say?
The question of “separation” is not one of “if” any more. It’s rapidly becoming one of “when” and “how”.
How can there be a reconciliation with those who hate you, and everything for which you stand?
When matters of policy were settled at the state level,
WHERE THEY ARE SUPPOSED TO BE,
it didn’t matter so much whether Congress and the Presidency were controlled by the left or right,
and people didn’t tend to HATE the other side so much,
because the other side wasn’t attempting to use the gov’t to impose their worldview on everyone in the nation.
The right would gladly go back to such a system, and allow the leftists to implement their destructive policies in their own states,
but the left is a different animal. Their ideology REQUIRES that all submit to their vision and their policies.
read later
“The right would gladly go back to such a system, and allow the leftists to implement their destructive policies in their own states,
but the left is a different animal. Their ideology REQUIRES that all submit to their vision and their policies”
I was just thinking the same thing yesterday. You’ve stated the exact conclusion I arrived at, and described it better than I could have.
For conservatives, it boils down to “you can live any way you wish in your own states, just leave us alone and don’t try to impose your ways upon us.”
For liberals, “it’s our way or nothing. You will live and give to us.”
What -other- time in history did this happen?
To those who think a reconciliation is possible.... do you believe the left will EVER cede their demands? Do you expect them to EVER bargain in good faith?
Conservatives have a choice we must make. It’s a choice that can no longer be avoided or wished away, and the time for choosing will soon be upon us.
I, for one, see some kind of “separation” coming down the pike. Not advocating, just saying. It might be peaceful. It might be otherwise.
But at some point, a significant number of traditional-minded Americans are going to conclude that they don’t want to be a part of “the new American plantation” any more. And they’re going to decide the only option left for them is to leave.
And the left is going to say “no”.
What will happen then?
Get elected....check
Transform America.....check
Destroy the Republic.....loading
This man....this POS Marxist Progressive Elitist Evil Sociopath, and ALL of his cronies, are hell bent on destroying America and “The Western Way of Life”.
With help from the Muslims....the Socialists...the Anarchists......the Communists....and of course, Satan himself....will our country survive?
I pray to God for America. We need HIM now more than ever.
Undaunted, the Obama administration canceled hundreds of gas- and oil-drilling leases in Western states. Obama then slapped a series of bans on offshore drilling.
Two federal courts have struck down portions of these moratoriums, but, as with the ongoing implementation of Obamacare (declared unconstitutional by a U.S. district judge), the administration flouts the courts and continues to choke off domestic oil production.
Time for the states to take over the leases and guarantee the safety of the companies who decide to drill. Let Obama and the Feds pound sand.
That had better happen pretty quick, as the rate things are, there might not be a country to save....
Ask yourself; would you rather have 3 honorable generals step forward for a period of a year or two, or continue down the road coerced by an abusive central power?
I’ll take the generals....
“How would you feel if you knew you were the one who screwed up a an entire country?”
Obama’s and the left’s philosophy is: You can’t make an omelet without breaking a few eggs. They may have to break the entire carton to make the omelet they want to serve. In their book, that’s OK.
I was just thinking that this morning...what if they drilled anyway.
F the Fed....F the moratorium....F the regulations.
Shouldn’t it be up to the states to decide what happens IN the state?
If they started drilling, especially in Alaska, not only would we be self reliant, but we’d create jobs...stability, etc. And that isn’t even if we tapped into all of it.
Imagine if we tapped into every natural resource America has? F the Middle East...and F our government for trying to tie our hands.
JUST DO IT!!
So to protect the constitution we need to ignore the constitution?””
The Constitution is being ignored, mangled, and manipulated at every turn. When gov’t is abusive and follows this path it is the right, no, the duty, of people to rise up and remove the tyrants by force if necessary. Voting has put a marxist tyrant in office who is taking down the country. Time to wake and smell reality.
I will NEVER live under communism or sharia... so yes I agree. Texas will be first... they will have to round up and expel all illegals one day and the fed is killing their revenue sources.
LLS
ping
http://www.usgs.gov/newsroom/article.asp?ID=1911
Apparently, politicians in DC are hiding this info or totally clueless. Anyone know why?
In using a military takeover, you are throwing out the constitution yourself. No one who values the constitution should support this.
And using Free Republic to promote the overthrowing of the government is going to get you banned.
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