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Friday, February 24, 2012

Watch Me Prove President Obama Is Clueless About How Markets Work

This Is The Part That Sets Up President Obama's Arrogance And Lack Of Understanding

Yesterday, President Obama condescended to those who disagree with him over our non-existent reality-based energy policy by saying the GOP had a three-point plan to lower prices at the pump, "Step 1: drill, step 2: drill, step 3: drill." You need to understand that this was a direct play to his Sarah Palin-hating base who shudder at her "drill, baby, drill" battle cry. Making fun of common-sense solutions to real-world problems is an accepted part of the politics of the Left.It is pure political demagoguery. After stirring up his base's utter hatred for anything they neither understand nor agree with, the President continued by saying, “Anyone who tells you we can drill our way out of this problem doesn’t know what they’re talking about -- or isn’t telling you the truth.” His solution is to invest what little money we don't have on energy sources that don't exist and that we won't be prepared to exploit for twenty years or more.

Arrogance on full display. Ignorance in full bloom.

This Is Candidate Obama in 2008 Blaming High Gas Prices On Everyone, Even Democrats:

This Is The Part Where President Obama Manipulates The Markets To Fit His Political Ideology:

In 2008,Candidate Obama spoke about how prices are going to have to rise in order to save the planet from certain destruction from green house gases. His logic is that high prices will necessarily force the markets to turn to alternative energies. This is an example of government manipulation of the free-market against the will of the people. Candidate Obama obviously did not understand that the government cannot force its market will upon a free people, but you voted for him anyway, which causes me to be concerned about you.

This Is The Part Where President Obama Contradicts Himself Re: Brazilian Oil

In a March 19, 2011, White House press release,President Obama talked down to the citizens of Brazil while hoping no one in America was paying enough attention to understand how ignorant he is:
“We want to help you with the technology and support to develop these oil reserves safely. And when you’re ready to start selling, we want to be one of your best customers. At a time when we’ve been reminded how easily instability in other parts of the world can affect the price of oil, the United States could not be happier with the potential for a new, stable source of energy.” 
A couple of things pop into my head:
  1. He feels the US is capable of helping Brazil develop its off-shore oil fields safely at the same time he bans off-shore drilling in the US because it is unsafe?
  2. Nothing against Brazil, I'm sure it's a nice place, and the people are lovely, but he wants a stable source of oil so he goes to Brazil to get it instead of the US?
Incidentally, Brazil signed contracts to sell the bulk of it's new-found massive oil deposits to China. Probably because they offered good money without the condescension. But that's just a guess.

Here's The Part Where I Show How Obama's Base Is Okay With Expensive Gas

Before we continue putting the kibosh on Obama's perceived grasp of how markets work, consider this article at TreeHugger.com on one reason high gas prices are good. Can't argue with the logic there, can you?

Then there's this piece at Treehugger about why you should take the bus, because it's better for all of us: Buses and Trains the Best Deal. This line of reasoning is wonderful and all, except I live in New Jersey, the most densely populated state this side of Bangladesh and mass transit around my house is non-existent, so what about those poor rubes that live in all of those icky, rural red states?

This Is The Part Where I Infer That Obama Is Either Lying Or Clueless

President Obama claims the following reasons are the causative factors for the current spike in gas prices, but that's only half the story:
  1. Instability in the Middle East. Like the Middle East is any more unstable now than it was a year ago? If you think it is, you are simply not paying attention.
  2. Speculators who are buying futures and raising the price of oil. This is a nice ploy, but history shows this doesn't actually work like people think it does.
While they may play a minor role, those explanations don't tell the whole story. There are other factors to consider:

A major contributor to the rapid off-season increase in the price of gas is not being reported widely by anyone -- soon-to-be-released EPA regulations on oil refineries to reduce the amount of sulfur content in gasoline. Senators from both parties wrote a letter in January to EPA administrator Lisa Jackson asking her to slow the implementation of these regulations because of the financial damage they would do to consumers, but so far the EPA has not replied. Haven't heard about that anywhere else, have you?

Another factor is the Obama Administration's rejection of the Keystone XL pipeline for specious reasons that amount to an appeasement of their environmentalist base. This week, the monolithic media are falling all over themselves in an effort to separate the Keystone XL rejection from the rise in gas prices. You will be propagandized into believing the Keystone XL oil was only going to go to China anyway, and that it would be years before we saw any real results at the pump from the pipeline as a way of protecting President Obama for taking responsibility for any of this.

This Is The Part Where My Head Explodes From The Democrats Obfuscation And Demagoguery

Whenever they come out against any increase in production or supply from American sources, the Democrat line is always that any relief or improvement won't be felt for years, so what's the point? Meanwhile, they force the markets and the people supporting them to buy into non-existent energy sources that nobody wants and won't be available for years. Why the American people are not able to see through the stupidity of this argument is a mystery to me.

This Is The Point Of The Whole Piece

Even though there are many contributors to the global rise and fall of oil, there is one simple truth that cannot be denied:
In July 2008, President G.W. Bush lifted a ban on off-shore oil exploration that was stupidly put in place by his father, George H.W. Bush in 1990. The ban was a politically motivated knee-jerk reaction to the Exxon Valdez "disaster" that people claimed would destroy Alaska for five-hundred years. Sarah Palin is proof Alaska survived, and so did Prince William Sound. 

We should note that in July 2008, Iran was still being run by lunatics and day traders were still hedging their bets on oil futures.

At the time of the lifting of the ban, gas was $4.11 a gallon.

In December, 2008 gas was $1.45 a gallon.*


* - Don't even try the non-sensical argument that the crash of October 2008 caused demand to drop. It didn't drop enough to lower the retail price of gas almost $3.00 a gallon. The economy did not come to a standstill, it just slowed, in spite of how horrible the people in charge want you to think it was. 

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