I bought my first car, a white 1976 Camaro in 1999. At that time the price of gas per gallon was 99 cents. I bought the car off my brother and boy did I have fun cruising around in an American built muscle car. There truly is nothing like a Chevy 350 small block engine with a four barrel carburetor. With gas about to surpass the $4 a gallon mark once again for the second time in the past five years, I think I can say those cruising days are long gone.
There is no doubt that working families are suffering now that gas prices are on the rise again. High gas prices at this very moment is impacting the price of goods and services we use everyday.
So what exactly is contributing to high gas prices?
Many economist say that gas prices are usually tied to a higher demand and the increase consumption in a growing global economy. Well the world economy has been in a recession for the past two and half years so why are they on the rise again?
What we have is a classic asset bubble similar to the housing bubble where the price is determined by "group think" than the actual market. Our economy is not expanding appreciably – to the extent there’s more spending, it’s because the credit policies – and group psychology – that got us into this mess are being doubled down on now.
Worldwide demand is up to some extent, but two things: first, a lot of this is anticipated demand – if everybody wishes hard enough together, we can make the worldwide debt crisis go away and go back to unbridled growth. Second, remember that global oil transactions are conducted in dollars. The rise in oil prices – and the Dow, for that matter – is far more a reflection of both wishful thinking and a debased dollar than it is healthy economic growth in the U.S.
After all, China’s been growing at 10 percent for what, thirty years now? That demand is already baked into the speculators’ cake. Besides, China’s got some of its own fiscal fires to put out right now.
In addition, with the moratorium President Obama put into place, domestic supply is projected to take a hit to the tune of 220,000 barrels a day.
It is the policy of this administration – and Big Government in general (for Big Government now dwarfs any reigning administration – but, serendipitously for Democrats, it always leans far left) – to cause energy prices to skyrocket here in America, even in the face of overall increased global demand.
The rise in fuel prices is NOT a sign of a healthy economy back on track – not here in the U.S. It is a red flag signaling that, in terms of recession, we’re at the beginning, not the end, of a protracted fall. And remember, President Obama himself said coal prices would “necessarily” skyrocket under his proposed policies – do you think his arbitrary moratorium is unrelated?
It is all part of the plan among liberals to have a controlled society that not only limits your and my ability to use energy the way we see fit, but to ratchet the U.S.’s power as a hegemon back to make way for the Utopian Global Community. That’s why Cap and Trade will be put into law by hook or by crook; if they can’t legislate it, they’ll regulate it into existence – all to limit U.S. growth. To cut American prosperity off at the knees.
Well, your prosperity and mine, that is. If one of the consequences of a Marxist economy is that those elite Big Thinkers who are self-appointed to “nudge” us into a higher plane of existence happens to be that they accrue vast wealth in the process (a la Al Gore), well, that’s just way the society crumbles, right?
China must look at us and laugh; they don’t have to entice us into the spider’s web. Chumps that we are, we’re walking right in, blinded by Utopian goggles.
So hang on to your hats everyone. Gas prices will keep rising and there is no end in sight. And don't expect President Obama along with the other clowns in Washington to do what is needed to create sound free market energy policy in this country. Just get ready for the tripple dip recession that is about to descend upon us.
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