red states rule
05-09-2011, 03:53 AM
The issues Obama faces with the US economy are all of his own doing. Yet the administration and the remaining supports of Obama would rather you think it is someone elses fault
snip
The gas crisis is something that, in its impact on the daily life of voters, should have a serious effect on Obama's chances in 2012. So you'd expect some effort at a solution on his part. But look as long and hard as you like -- that is something you will not find.
What you will find is an insistence from Obama and all concerned that there's nothing to be done, that oil prices are a product of forces beyond the control of even the messiah, that "we can't drill our way out of the problem." This is nonsense. Faced with the same predicament in 2008, George W. Bush brought oil prices down simply by announcing that new drilling areas would be opened up. Prices dropped, an outcome that Obama would have us believe is impossible.
The problem lies in Obama's lack of understanding of how markets work. Obama -- and the economics wizards with whom he surrounds himself -- advocates a kind of knucklehead positivism, contending that commodities cannot have any effect on the market unless they're right there on the spot, that the price won't change a nickel unless a few million barrels are dropped off where you can look at them, touch them, and pop one open to see that yes, there's really oil inside. Then and only then will the markets respond.
This is precisely the opposite of how futures markets actually work. A futures transaction is simply a bet that prices will be maintained or rise within a given period. If anything occurs to push the price down, then you'd better have the cash to cover your bet, or flocks of big bad pinstriped lawyers will come get you. No oil is actually on hand at any time during the process.
George W's announcement was a strong hint that the price would not hold. Last week's drop was similar, but due to basic economic principles: the price of gas went up, people stopped driving so much, and by gosh by golly, the price went down. Isn't it something the way that works?
In truth, the administration has been doing as much as it can to bolster prices, through the actions of Ken Salazar at Interior. Recent discoveries have demonstrated that the U.S. possesses more in the way of hydrocarbons than Saudi Arabia. Yet Salazar, presumably with Obama's blessing, has been working overtime to prevent access to these new finds, first in the Gulf, then in Alaska, and lately in the Midwest. So here we have both sins of omission -- refusal to take action to lower prices -- and commission -- deliberately embargoing new sources of supply. How does that sound as a campaign issue?
http://www.americanthinker.com/2011/05/obamas_worst_enemy.html
snip
The gas crisis is something that, in its impact on the daily life of voters, should have a serious effect on Obama's chances in 2012. So you'd expect some effort at a solution on his part. But look as long and hard as you like -- that is something you will not find.
What you will find is an insistence from Obama and all concerned that there's nothing to be done, that oil prices are a product of forces beyond the control of even the messiah, that "we can't drill our way out of the problem." This is nonsense. Faced with the same predicament in 2008, George W. Bush brought oil prices down simply by announcing that new drilling areas would be opened up. Prices dropped, an outcome that Obama would have us believe is impossible.
The problem lies in Obama's lack of understanding of how markets work. Obama -- and the economics wizards with whom he surrounds himself -- advocates a kind of knucklehead positivism, contending that commodities cannot have any effect on the market unless they're right there on the spot, that the price won't change a nickel unless a few million barrels are dropped off where you can look at them, touch them, and pop one open to see that yes, there's really oil inside. Then and only then will the markets respond.
This is precisely the opposite of how futures markets actually work. A futures transaction is simply a bet that prices will be maintained or rise within a given period. If anything occurs to push the price down, then you'd better have the cash to cover your bet, or flocks of big bad pinstriped lawyers will come get you. No oil is actually on hand at any time during the process.
George W's announcement was a strong hint that the price would not hold. Last week's drop was similar, but due to basic economic principles: the price of gas went up, people stopped driving so much, and by gosh by golly, the price went down. Isn't it something the way that works?
In truth, the administration has been doing as much as it can to bolster prices, through the actions of Ken Salazar at Interior. Recent discoveries have demonstrated that the U.S. possesses more in the way of hydrocarbons than Saudi Arabia. Yet Salazar, presumably with Obama's blessing, has been working overtime to prevent access to these new finds, first in the Gulf, then in Alaska, and lately in the Midwest. So here we have both sins of omission -- refusal to take action to lower prices -- and commission -- deliberately embargoing new sources of supply. How does that sound as a campaign issue?
http://www.americanthinker.com/2011/05/obamas_worst_enemy.html