In His Own Words: President Obama Wants Higher Energy Prices
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Higher gas prices mean higher prices for food and every other basic necessity that has to transported.
Is this what Obama wanted in order to create his “green” Utopia? Working families having to choose between filling the tank or putting food on the table? Going on unemployment because the commute to work costs more than they make? Haven’t struggling American families suffered enough?
Apparently not enough for Obama. He takes no responsibility at all, blaming anything and everything except his own policies: blocking the Keystone XL pipeline, reducing leases to drill on federal lands, holding up over half of all deep water drilling permits, effectively shutting down the Gulf, strangling EPA regulations, blocking offshore drilling in Alaska, leaving us at the mercy of psychotic Middle East regimes like Iran…and the list goes on.
However, the Washington Examiner reports, the Narcissist-in-Chief refuses to admit that his policies are to blame:
President Obama does not “accept responsibility” for high gas prices, his spokesman indicated today, arguing that Obama has done everything he could to bring down the price of oil and blaming the high gas prices on oil price increases caused by global factors.
He’s also claiming that there’s “no magic wand” or “magic beans” to bring gas prices back down, as if our energy policies were completely out of his control and his critics were actually demanding “magic” as the solution.
I don’t know whether to be insulted that he thinks the American people are stupid enough to fall for this excuse, or aghast that a sitting president could be clueless enough to believe it himself.
…if the American people think Obama hasn’t done everything possible to buffer oil shocks, there’s reason: He hasn’t.
The administration on Tuesday blamed last month’s shelving of the Keystone XL pipeline on “political” acts by Republicans in Congress. In fact, Obama ditched Keystone — which would have brought Canadian crude oil to Gulf Coast refineries — to keep his greenie base happy.
And the pipeline is but one of many Team Obama decisions that have left America’s oil supply more vulnerable to the vagaries of world events.
* Under Obama, the American Petroleum Institute notes, leases on federal lands in the West are down 44 percent, while permits and new well drilling are both down 39 percent, compared to 2007.
* In the wake of the BP oil spill, Obama shut down most Gulf of Mexico drilling; there’s been a 57 percent drop in monthly deepwater permits over the last three years, according to the Greater New Orleans’ Gulf Permit Index.
* The EPA continues to block drilling off the coast of Alaska — where an estimated 27 billion barrels are waiting to be tapped.
And that’s not even the complete list.
Ben Shapiro warns at Big Government that this could send an already weak economy into a double-dip recession:
With the news today that gas prices have hit $6 per gallon in some areas of Florida – and a brief drive around the Los Angeles area will show you gas prices nearing the $5 range regularly – Americans may need to begin considering what they will do if the economy takes another nose dive.
This isn’t alarmism. Oil price rises of this magnitude have repeatedly done severe damage to the American economy, most recently during the summer of 2008. Economist James Hamilton of the University of California, San Diego, elucidates:
Big oil price increases that were associated with events such as the 1973-74 embargo by the Organisation of Arab Petroleum Exporting Countries, the Iranian Revolution in 1978, the Iran-Iraq War in 1980, and the First Persian Gulf War in 1990 were each followed by a global economic recession. The price of oil doubled between June 2007 and June 2008, a bigger price increase than in any of those four earlier episodes.
Hamilton’s economic models suggest that we could have predicted the GDP for 2008 by looking at oil prices almost exclusively. His statistical model was so strong that he actually admitted he didn’t believe it himself.
The logic here is simple. When oil prices rise, Americans don’t have enough money left over to pay for other items. Raises in oil prices cause inflation in food prices and secondary industries. That, in turn, sucks even more disposable income out of the economy. Eventually, people don’t have the money to buy new houses or pay their mortgages – especially people who took out mortgages too large and were living paycheck to paycheck. Boom.
Tyler Durden at ZeroHedge warns that “$200 Oil Is Coming As Central Banks Go CTRL+P Happy“:
We have been saying it for weeks, and today even the WSJ jumped on the bandwagon: the sole reason why crude prices are surging (RIP European profit margins: with EUR Brent at a record, we can only assume the ECB will pull a 2011 and hike rates in 3-4 months even as it pumps trillions in PIIGS, banks bailout liquidity) is because global liquidity has risen by $2 trillion in a few short months, on the most epic shadow liquidity tsunami launched in history in lieu of QE3 (discussed extensively here in our words, but here are JPM‘s). Luckily, the market is finally waking up to this, and just as world central banks were preparing to offset deflation, they will instead have to deal with spiking inflation, because the market may have a short memory, it can remember what happened just about this time in 2011. And the problem is that when it comes to the inflation trade, the market, unlike in most other instances, can be fast – blazing fast, at anticipating what the central planning collective’s next step will be, after all there is only one. And if Bank of America is correct, that next step could well lead to the same unprecedented economic catastrophe that we saw back in 2008, only worse: $200 oil. Note - this is completely independent of what happens in Iran, and is 100% dependent on what happens in the 3rd subbasement of the Marriner Eccles building. Throw in an Iran war and all bets are off. Needless to say, an epic deflationary shock will need to follow immediately, just as in 2008, which means that, in keeping with the tradition of being 6-9 months ahead of the market, our question today is – which bank will be 2012′s sacrificial Lehman to set off the latest and greatest deflationary collapse and send crude plunging to $30 just after it hits $200.
Is Obama solely responsible for central banks all over the world pumping the markets with monopoly money and keeping interest rates artificially low? No. But he IS responsible doing everything he can to obstruct energy development here at home, and for the disastrous Keynesian monetary policies being implemented by Bernanke and Co.
Hyperinflation is on its way thanks to government meddling in the free market, and it’s the poor and middle classes who will feel the most pain when it hits.