July 13, 2008
$12 a gallon of gasoline: the real scare
By admin
Written by Michael Vass
**This post can also be found at Crude Oil Futures Blog **
Here we go, the polispeak is in full force. Senator Obama has suddenly realized that Iran affects the price of oil. In fact he has been advised, recently one would assume, of the following:
Now let’s ignore the fact that both the Democrats and Republicans share equally in the lack of alternative energy sources for America in the past 40 years. Neither side can point a finger as ultimately both sides failed the American people on this issue, multiple times.
Rather I want to focus on a scenario.
Senator Obama has made it clear time and again that he wants to speak with Iran. Let’s say he is President (which is not all bad) and he does speak with Iran. Say the meeting goes ok, or so we are lead to believe. They promise not to create any (more) nuclear weapons. And then they go out and “shut down the Straight of Hormus”.
What does President Obama do? Speak with them more? What argument or negotiation can he make that is better than the, at least, $300 a barrel price of oil in the mere first minutes of the blockade? What would be better than the probable $500 a barrel price that would come easily in the first day?
Considering that Senator Obama has repeatedly stated that a strong offense, ie military, is not the means he would use first – and/or possibly ever – what recourse does he have?
Well Democrats have said that higher oil and gasoline prices are good. Because they will force America off of oil. That we need to use alternative energy. So the thought of $12 a gallon for gasoline must be thrilling to them.
Of course if this is true then you have to wonder if President Obama would say anything to Iran. Or if he could say anything that he felt was better than having higher oil prices.
At the same time remember this. If oil suddenly went to $300, heating oil 3x overnight. Gasoline goes to $12 and people will horde it in a manner that would make the 1970 look like a vacation. Millions would not be able to heat or cool their homes. Tens of thousands of businesses would close overnight. Unemployment would rocket past the levels last seen during the President Carter Administration. The cost of every good in America, or sold overseas, would be so high that a gallon of milk would cost like buying printer ink cartridges today.
So while Senator Obama is trying to use Iran as a scare, and a source of blame only on Republicans, remember the facts.
Democrats are as much to blame as anyone. Democrats want oil prices higher. Obama wants to talk to Iran. Obama does not like to use the military (even in the case of a 9/11 type of incident).
Diplomacy while businesses shut down, cost of everything skyrockets, and people freeze. That’s a really great plan. And every American will he stateside to experience every second of it.
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July 28th, 2008 at 10:45 pm
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