Posted on 04/23/2011 4:49:46 AM PDT by Scanian
Gasoline has exceeded or approached $5.00 per gallon in some parts of the United States long before the normal peak travel season has begun. Already the politicians, headline writers, and some cable and talk show pundits are pointing to the usual suspects. But they have avoided or are unaware of where the fault actually lies.
One of the foundational tenets of economics is what is known as the law of supply and demand. Normally whenever a product or commodity is in short supply the cost to acquire it increases; on the other hand, if there is a glut on the market the price decreases. However, over the past three years, thanks to the profligate fiscal policy of the Obama administration and the Democrats in Congress combined with the money creating monetary policy of the Federal Reserve, this law has been turned on its head.
There are two commodities deeply affected: the first is oil, which is a basic modern day necessity; and the second is gold, which has always been a safe haven against economic downturns that reflect this upside down world.
The fluctuations in the price of oil have been primarily demand-driven, and to a lesser degree impacted by world conditions which is reflected in supply. Since 2003 world oil production has maintained the following relationship with global oil consumption.
(Excerpt) Read more at americanthinker.com ...
How badly are the usual summer vacation spots gonna be hit by this?
Holder case closed
Obama and his administration are set on destroying the last vestiges of the Republic of the United States. That has been the plan of the handlers of the POTUS since before Roosevelt and they are within eyesight of the goal. As President, Obama is right up there as Jimmy Carter, but as the agent of our demise, he is doing a spectacular job!
The author of the piece makes a point that you rarely see made in the MSM. The borrowing practices of the US government and the monetary policy of the Federal Reserve are driving the US$ down and commodity prices up. It is as simple as that.
Moreover, Hussein's obvious energy policy helps tighten supply and drive prices up even further. Will gas go to $5 and $6? Why not? It is unstated government policy to drive up the price of ALL energy, especially so called "fossil fuels".
The solution is as simple as the cause: DRILL, DRILL, DRILL. Build coal to oil plants. Build nuclear plants. The US has the technology, it only lacks the political will.
The US economy will decline as long as Hussein is in the White House. Count on it.
Barry Hussein Soetoro
“How badly are the usual summer vacation spots gonna be hit by this?”
If Obama has his way, badly. One dimension of freedom in America has been the ability of its people to travel freely. High gasoline prices will limit mobility forcing people to stay at home and be captives of television and the brainwashing generated by Hollywood and the mainstream media.
Like I said.
Don’t worry. Obama and Holder are going to crack down on greedy speculators. That’ll bring the price right down.
/sarc
Please read the article, especially the last few paragraphs. Then take note of my tag.
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