Let the fun begin. Below is a chart showing that gasoline on a national basis is now within 25 cents of the highest price ever in the history of gas prices. Obama is shitting his Hanes. Prices are now $1 per gallon higher than they were a year ago. This is a 35% increase in one year. But don’t worry, The Federal Reserve says you aren’t experiencing any inflation. What you don’t hear the MSM saying is that prices are actually $2 per gallon higher than they were two years ago. That is a 107% increase in two years. This means that the average household in the US has experienced a $1,000 per year increase in their costs in the last year and a $2,000 increase over two years. Half the households in this country have income less than $48,000. We know this increase barely registers on the troglodites from Wall Street filling their stretch Hummers, but to the working middle class, this hurts bad. Obama knows it and sees his visions of a 2nd term slipping away unless he does something. Maybe if we give everyone a Chevy Volt, through a new government program funded by your taxes, we can beat these high prices.
The clueless, corrupt, contemptable Washington elite are acting their parts for the big show. We will now get to witness the great Washington Kabuki Dance. Here is what you are seeing and will see in the coming weeks and months:
- Obama has already called for investigations, prosecution, and tar and feathering of the dreaded oil speculators who have caused this unconscionable rise in gas prices.
- Obama blames Big Oil and their dreaded profits for all the woes of the American driver.
- Obama declares that all the billions in subsidies be stripped away from these evil doers. In the meantime, subsidies for ethanol, solar, agriculture, studying the mating habits of brown breasted warblers, and the migration patterns of the spotted owl are just fine.
- Democrats in Congress will declare a national emergency because vacation season is approaching and the millions of clueless Americans that have leased 15 mpg super SUVs will be in danger of not making it to Yosemite this year. The STRATEGIC OIL RESERVE must be tapped to save the American driver.
- Democrats will call for Congressional Hearings so they can posture and yell at the CEOs of the Big Oil companies along with the dreaded speculators.
- Obama will declare that electric cars and green energy are the solution. No need to pull out the Hirsch Report from 2005 to see that this was all predictable. No need to assess that the Dept of Energy was created in 1979 to reduce our dependence on foreign oil and we are twice as dependent today. No need to assess the impact of not building a new nuclear power plant or oil refinery since 1979. This would be a real inconvenient truth.
- Republicans will blame the entire increase in prices on Obama’s ban on new drilling in the Gulf of Mexico.
- Republicans will tell Americans that if we could just drill off the east coast, west coast and in Alaska, all would be well. We would be self sufficient and could tell the Arabs to fuck off. No need to point out that American production peaked in 1970 and will relentlessly decline no matter what new drilling occurs.
- There will be stories on the MSM about Americans coming to their senses and buying fuel efficent vehicles just like in 2008. Of course actual vehicle sales figures will show that 70% of sales are still SUVs, Pickups, and big luxury cars. Never underestimate the stupidity and cluelessness of Americans.
The Kabuki theatre will play out before our very eyes. The truth will not be bothered with. Countries in the Middle East are paid for their oil with USD. The more Bennie prints, the less valuable they become. Therefore, the oil producers require more USD just to stay even. The USD has fallen 16% versus a basket of world currencies since June of 2010. You can conclude that at least half of the rise in gas prices is directly related to Ben Bernanke’s printing press.
The US foreign policy of backing despots and dictators in the Middle East is now biting us in the ass. World oil supply and world oil demand have been very closely aligned. The revolutions in the Middle East have taken 2 to 3 million barrels per day out of production. Amazingly, supply and demand were no longer aligned and the result is prices go up. I guess Obama skipped his Econ 101 class at Yale.
Lastly, peak oil is real. No one in the MSM even discusses this issue. The Saudis have been lying for decades about their reserves. Demand from China and India is rising exponentially. Supply topped in 2005. Even though US demand has been flat, it doesn’t matter. Prices may occasionally collapse when the world goes into recession, but the long-term trend will be higher. No one can change that fact. President Hopey McChange is about to get more change than he bargained for.
The Obama administration created a working group to explore whether oil and gasoline prices are being driven higher by illegal manipulation, the Justice Department said.
The working group, which includes representatives of federal agencies and state attorneys general, will check for fraud, collusion or misrepresentation at the retail and wholesale level, the department said in a statement today. The group also will examine investor practices and the role of speculators and index traders in oil futures markets.
“Rapidly rising gasoline prices are pinching the pockets of consumers across the country,” Attorney General Eric Holder said in the statement. “We will be vigilant in monitoring the oil and gas markets for any wrongdoing so that consumers can be confident they are not paying higher prices as a result of illegal activity.”
With a presidential election 19 months away, President Barack Obama faces increasing political pressure over rising gasoline prices. Crude oil futures have increased 22 percent and gasoline surged 34 percent this year as Middle East unrest reduced supply and the global economic rebound bolstered fuel demand. Both futures contracts touched the highest levels this month since the records reached in 2008.
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