Obama's 2% Lie


#1

Obama's 2% Lie

Gas prices shot up 18 cents on average nationwide over the past two weeks, according to the latest Lundberg survey.
That puts the average cost of regular gas at $3.69 a gallon. Of course, many of you around the country are already paying over $4.
President Obama, members of his administration, Democrats in Congress, and his allies on the left all make the same case: we can't "drill our way" out of this problem.
They say we use a quarter of the world's oil, but only have 2% of the world's oil reserves. So, do the math. They say it's impossible, but here's how he gets to that mythical 2%.
For simplicity, we'll call it Obama's big oil lie because that's what it is.

Read more: foxbusiness.com/on-air/wi...#ixzz1olXZKBtQ


#2

It is a matter of public record that Obama’s regime wants the price of gasoline in the US to equal that in Europe. They justify that with the excuse that it will make us use less gasoline and utilize other resources.
PISH TISH AND FIDDLESTICKS!!!
I think the real reason is he and his people want more tax money. Bear in mind that Federal gasoline taxes are based on a percentage of the retail price.
As for “gasahol”, within a year of the “gasahol” subsidy being passed under Clinton, the price of bread doubled, along with every other thing based on grain because grain was being diverted from the food chain to make alcohol for automobiles.
If any politician was serious about returning the price of oil and grain to reasonable levels, they would outlaw the trading of futures in these commodities on the stock markets of the world.
The original economic reasons for the futures market no longer exist due to modern scientic production and delivery methods and contemporary legislation. The reason for the high prices is largely due to speculators who are able to manipulate the market and who also control the politicians with their huge campaign contributions.


#3

[quote="George_Stegmeir, post:2, topic:276763"]
If any politician was serious about returning the price of oil and grain to reasonable levels, they would outlaw the trading of futures in these commodities on the stock markets of the world.

[/quote]

Good point. Paper oil (and highly leveraged at that, creating false demand) distorts the marketplace.


#4

Shameful.


#5

[quote="George_Stegmeir, post:2, topic:276763"]

I think the real reason is he and his people want more tax money. Bear in mind that Federal gasoline taxes are based on a percentage of the retail price.
As for "gasahol", within a year of the "gasahol" subsidy being passed under Clinton, the price of bread doubled, along with every other thing based on grain because grain was being diverted from the food chain to make alcohol for automobiles.

[/quote]

Excellent point. I wonder how many remember that prior to the runup in oil prices immediately prior to the crash of 2008, a runup in prices of food commodities led to worldwide food riots. Excess speculation in these commodities was responsible.

I would not go so far as to outlaw commodities futures trading. Futures contracts between direct buyers and sellers of these commodities are an essential aid to price stability. I would advocate strictly enforced limits on who is allowed to trade in these markets.

Commodities such as food and fuel are essential to daily living. As such, governments ought to make sure that prices do not rise to levels that threaten societal well-being. When speculators enrich themselves at the expense of ordinary people, something is wrong and the injustice should be rectified.


#6

"Technically recoverable" doesn't mean "economically recoverable." Sure, if you compare every possible source of gasoline in the US to the global crude oil only, you'll get a number larger than 2%. However, just because the reserves are local doesn't mean you can exploit them cheaply enough to lower gas prices.


#7

[quote="TheTrueCentrist, post:6, topic:276763"]
"Technically recoverable" doesn't mean "economically recoverable." Sure, if you compare every possible source of gasoline in the US to the global crude oil only, you'll get a number larger than 2%. However, just because the reserves are local doesn't mean you can exploit them cheaply enough to lower gas prices.

[/quote]

Kinda like the oil sands in Canada. If the price of oil goes too far below 100 USD a gallon, they can't really make money from the oil since its so expensive to extract.


#8

[quote="Listerine_Phone, post:7, topic:276763"]
Kinda like the oil sands in Canada. If the price of oil goes too far below 100 USD a gallon, they can't really make money from the oil since its so expensive to extract.

[/quote]

The volatility in oil prices and futures makes it difficult to do long-term planning by oil companies and refineries, domestic and foreign. Plays havoc with the airline industry as well as they hedge with oil futures. As do Goldman Sachs, Bank of America, etc.


#9

You might as well as get used to high gas prices. From here the price will increase over the next two years to about 6-$8 per gallon. The world reached peak oil ten years ago and the fact is that we only have a 3.5% surplus in world oil reserves. Why do you think the government is pushing hybird cars, electric cars, natural gas trucks, buses and public transportation now. They also have raised the mileage requirement for all cars to above 50 miles per gallon over the next 13 years.
The days of cheap gasoline are officially over.
:eek:


#10

Now if Bernanke can do the same with house prices. :slight_smile:


#11

Opinion article


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