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Showing posts with label opec. Show all posts
Showing posts with label opec. Show all posts

Monday, January 23, 2012

Obama hopes for economic collapse

For some reason it seems to me that Obama is hoping for another economic collapse. I'll try to keep it simple enough so that democrats can even comprehend this. If I'm wrong no big deal, but if I'm right, God help us all because the housing bust won't be anything compared to this.
First, he has declined to approve the Keystone Pipeline due to his slavery to the environmentalist and his desire to keep them happy, and their money. This decision, is going to have a two fold impact. One, it will allow the job creation associated with it's construction to go by the wayside for at least another year. Two, the lack of new energy production will allow oil prices to continue to rise.
The next decision he has made that will contribute to our demise is the refusal to confront Iran and the trouble stirring in the middle east. The unstable atmosphere in the region has caused a direct effect of oil price increases and in turn, a hike in gas prices in the past month. This is just the start of things to come.
The future for oil prices is looking bleak for the United States and the American public. The economy will start to slow again when Gas prices start to inch up toward $4.00 dollars a gallon again. People that live in rural areas and do not have alternate transportation means will simply sit home and save money to put into the gas tank. We have already seen this once before, right before the housing bust, gas hit $4.00 dollars a gallon and the economic push we needed stopped. People seem to think that the housing bubble started this crises, they have blinder on, the increase of gas prices started it all. When people couldn't meet their budgeted obligations due to the increase of transportation cost, it became a domino effect. They needed money for fuel, stopped any extra spending on unneeded consumer goods, this in turn slowed down the manufacturing sector, which started laying off people, then they couldn't pay their house note and it got worse from there.
Obama seems to be hoping for the same thing to happen all over again. With his refusal to do anything to make us energy independent from OPEC and middle east interest, it will only be a matter of time before gas prices will slow the economic engine of the US once again.
If the predictions of the experts are right, gas will hit nearly $5.00dollars a gallon by mid summer, just in time for the presidential political game to heat up. Gas prices when Obama took office was just below $2.00dollars a gallon and continued to rise since he has been in. The economic recovery started slowly when prices got lower, and we are just now seeing the result. We will see the economic slow down start again by summer, it will be directly related to gas prices and commercial property my see the next bust. When people have to stay home and quit shopping because they need the money for gas, business's will close and inflation will hit all sectors due to transportation cost.
We have to seek energy independence in order to save our economy. Obama will never let it happen, so vote for change you can live on, believe it.

Monday, April 12, 2010

Can OPEC kill the economy?

If you think the housing bust was about bad loans, yes, a lot of the loans were made to low lifes that knew they could never pay the loan. But, the housing bust corresponded with what, the last rise in the prices at the pump. Most people live on a budget, when the budget is busted, it forces people to makes cut somewhere.
When gas prices hit $4.00 a gallon, not only did effect how much it cost to fill up a car, it did much more. Fuel cost increased the cost of shipping everything. Food went up, airline tickets went up and business's started to suffer. Restaurants and other establishments begin to layoff workers due to the business turn down.
When peoples disposable income began to disappear, their budgets began to get out of whack. Part of the  money they had allocated to help pay the bills started going in their tanks and to pay for the increase in grocery prices.
The economy seems to be slowly recovering now. Jobs are not readily available yet, but small business is seeing some growth, along with housing sales picking up. The American public is still vulnerable to rising gas prices, with a lot of blue collar workers dependent on independent travel to and from jobs, small increase hurt.
If OPEC decides to cut production to increase prices, who will stop them. Oil prices are on the rise again and will probably continue through the summer. This will coincide with summer travel plans with millions of Americans headed on vacation. With every price increase at the pump, they will have to cut something somewhere. One less night at the hotel, one less meal they eat out, multiply this by the amount of travelers and isn't hard to see where this is headed.
If we head into another economic turn down with the unemployment rate already at 9plus percent, around 20percent in the construction field, what happens then. Do we blame this on the financial institutes again? When prices at the pump go up the congress is quick to blame the gas companies and fail to mention the role of our foreign dependence on oil. Do we have a recourse against OPEC creating self imposed shortages, such as cutting production? Price at the pump depends on the price of a barrel of oil.

So, are we headed for another economic slow down, prices at the pump are up now over a dollar a gallon from last year, which is keeping the recovery in the slow mode. If we want to get the economy pumping again, slow down the cost at the pump.