Wednesday, February 15, 2012

Obama's Ticking Time Issue

Sometimes it is very hard to see, even when you are as brilliant as our President is, the unintended consequences of one’s actions.  Unfortunately for Obama, the fruit of his decisions will show itself right at election time.  You see, all along, our president has done everything in his power to diminish our capacity for domestic energy production.  First, the moratorium in the gulf and now the xl pipeline from Canada.  The best time to start drilling is yesterday, but for Obama it is never. Since oil is a commodity, its price is very prone to subjective to changes such as a crisis with Iran in the Gulf.   Oil prices would dip just upon the announcement of opening up new fields, but that is unlikely.  Now, I’m not laying the price of gas at Obama’s feet alone.  This has been a problem passed down from one generation to another as the political will to expand oil and refining has been absent.  However, Obama is unique in that he has only worked to make things worse.  But where does the ticking time issue come into play.  So for Obama to get re-elected, he needs a couple of things to happen.  He needs a recovering economy and he needs the electorate to feel confident about its recovery and nothing makes a recovering economy struggle more than the price of energy.  When an economy is recovering, even the most modest of recoveries, the demand for energy increases as production and consumption rise.   Even though the price of gas has almost doubled since Obama has taken office, the spikes we are likely to see this summer are not ones even the media can insulate him from.  So what we end up with is a president that is trying to say way to go economy, but that recovery makes gas more expensive, and when gas is more expensive, prices go up and discretionary income is diminished, which then makes people able to spend less money on the recovery and more money on energy related costs alone, which will then throw us back into a greater recession.  It is kind of like in Empire Strikes back when Luke tries to get his x-wing out of the swamp.    Despite his efforts, his craft sank further into the muck.  I think it is time to get Luke out of the way and let master Yoda have a crack at the economy.  Do I think Obama saw this coming during an election year, nope, but I have never thought him to be brilliant.  Now I will wait and see if the Republicans duck and hide when the time issue erupts or if they seize the crisis in true Obama fashion to try and restore sanity.  I honestly have no hope they will.

1 comment:

Kansas Bob said...

Suspect you are correct on this one.

If only the country had embraced ethanol years ago?!