Gas prices shouldn’t be high, but are: What gives?

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10 most expensive gas prices may 2014

We’re all tired of the impossibly high prices at the pump, but what can we do about them? During the debates, President Obama said that gas prices were cheap when he took office because the economy was at a standstill and now they’re going up because of his “robust” economic recovery.

Sorry, but I call Bullshit on that.

If that were true, during the Reagan years, gas would have tripled or quadrupled in price because the GDP grew on average 4.1% per year. Under Obama GDP is “growing” on average, 1% a year. So if 1% GDP growth increases gas prices by over 100%, from $1.78 when he took office to $3.67 per gallon now, under Reagan gas prices should have skyrocketed, yet they didn’t.

And gasoline prices are steadily on the rise.

gas pump

Is it demand? Oil production?

Rumors about the demise of U.S. gasoline demand have been greatly exaggerated.

Until late 2013, most energy observers forecast the world’s most reliably gas-guzzling market to consume less fuel this year. What was once thought to be a structural decline in demand, however, has proven more durable than expected.

As the summer driving season nears, retail gas remains stubbornly lodged near $4 per gallon. According to the Energy Information Administration, gas prices rose for 12 straight weeks through late April, and were 20 cents a gallon higher than the same point last year.

So what gives?oil well opec

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“The world’s not swimming in crude or gasoline yet,” said Francisco Blanch, commodities strategist at Bank of America-Merrill Lynch, in an interview. “Despite all the crude and gasoline production in the U.S., international markets are not tagging along.”

International developments matter, analysts say, because gas prices are linked to internationally priced Brent crude. Turmoil in Ukraine and spotty supply from the perennially unstable Middle East has conspired to keep oil above $100 per barrel.

I see! It’s the rest of the world, if they’d just get their act together…

BofA-Merroil wellsill points out that domestic oil and gas production has driven gasoline imports to near zero, while the U.S. is churning out nearly 10 million barrels a day. Despite all this, there has been little relief at the pump due largely to factors outside America’s control.

The International Energy Agency said in its most recent report that OPEC will need to increase its own production this year to sate rising demand. Meanwhile, the energy watchdog said non-OPEC production is also falling short of expectations.

‘Shale boom may not be helping’

“In the U.S. and Canada, yes, there is a big shale revolution going on…but the rest of the world is not producing enough to feed itself,” said BofA’s Blanch. “That’s why oil prices abroad are elevated and why gasoline, which is pegged to oil prices, are so high.”

But never fear, the Feds are throwing us a bone.

The EIA expects crude oil prices to fall this year, which should keep a lid on gas prices. Still, the agency expects average gas prices to rise by 3 cents during the June—August period compared with the same quarter last year.

If I were you, I wouldn’t hold my breath…

Read more here.

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Informed Voter: When Trust Collides with Reality

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When Barack Obama was elected in 2008 people threw their support behind hope and change.  They placed their trust in Obama to usher in a new age of bipartisanship and unity.  After all he was the man said who said we were all Americans no matter whether we came from blue or red states.  People were inspired by his words and believed he would reduce the debt, save the economy, end the wars, and change the way business was conducted in Washington.  They chanted “yes we can” and embarked on a quest to get the man who would be America’s savior elected.

Not only was Obama elected but the people gave him a super majority in congress to achieve his goal of the fundamental transformation of America.  Four years later we now know what the President’s vision of fundamental transformation is; massive debt, diminished America standing in the world, the takeover of the healthcare system, loss of our triple “A” credit rating, high unemployment, high energy and gas prices, the massive printing of money, and a nation that is more divided than united.  This is the transformational reality we’re living in each day.  And this reality flies in the face of the hope and change Obama promised to bring to Washington and America.

People feel this reality when they try to stretch a dollar that no longer has the value it did four years ago.  They feel this diminished purchasing power in the increased price of food, goods, and gas.  They trusted the President and his party to change the tone in Washington.  They trusted the President to make things better and the reality is things are far worse for the middle class.  Those we placed our trust in can’t even agree on passing a budget and a budget is the first step you must take to get your spending under control.  It creates parameters an organization must stay within when they conduct business.  When reality is in conflict with the trust we’ve bestowed upon our elected officials, Americans are in conflict with themselves.

No one likes to feel duped or taken advantage of and that’s exactly what has happened.  You’re not alone because politicians have been making empty promises to the voters since the Roman Republic.  People want to believe the lie because the truth can be a hard pill to swallow.  We want the unicorn/rainbow version of the truth because it’s easier to relinquish our responsibilities and turn them over to a single point of contact so we can blame someone else when it all comes apart.  This is why we continue to reelect senators and representatives who sell us this sunshine version of the truth.  It makes us feel better about us and removes any responsibility we have as citizens.  This must change.

We must stop placing all our trust in politicians who will say and do anything to hold on to power.  We must empower ourselves and take the time to research the issues.  We must stop listening to the talking points and the media and become informed on the issues that matter to all of us.  When you are informed, campaign ads become less effective because it’s harder to pull the wool over the eyes of an informed voter.  Calling Mitt Romney a liar just doesn’t get it done because you already have the facts behind his tax plan.  And this is a place I would think most voters would like to be because an informed voter is indeed dangerous to the status quo.  We have the power to change this reality we live in and change it we will.  The more Americans who step up and take responsibility for their vote, the better America will be.  And that’s a goal worth achieving

Liberty forever, freedom for all!

Original Post:  The Sentry Journal

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Obama Succeeds! Gas Prices Have Almost Doubled Since Taking Office!

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You read the title correctly folks.  For the second week in a row, I have had to admit that the Obama administration has achieved one of it’s stated objectives-to cause gas priced to rise.  Kindly consult the graphic below, courtesy of Redstate…

Now, some critics may rain on this hollow praise by saying that our high and mighty POTUS really doesn’t want to hurt people with higher fuel prices.  After all, not only does it make it more expensive to get to work (if Obama hasn’t killed their job), it raises the price of everything.  Well, let’s take a look at recent history…

Oh my, how the narrative changes!

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Democratic Policies Fight Auto Industry Rebound?

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The domestic auto industry is on the rebound, leading to more jobs, greater protection of union jobs, rising salaries, and a better international balance of trade. But Democrats don’t like the auto industry rebound and over the coming months are going to continue their attempts to punish this large and important segment of our economy.

The logic for this is quite clear- the auto industry rebound is being led by booming sales of SUV’s and trucks and the rebound would have been stronger if it wasn’t for the absurdly poor sales of ‘green cars’. And yet Democrats in Congress and in the Presidency are continuing their attack on SUV’s and trucks by pushing for higher CAFE standards and pushing for cap-and-tax, all the while promoting and subsidizing and pushing for ‘green cars’.

Democrats are trying to hurt the profitable sectors of the auto companies, are trying to make people who work on SUV’s and trucks to lose their jobs, and are trying to damage the salaries of everyone in these auto companies by attacking the most profitable operations of these companies. At the same time, they are trying to make auto companies build cars, at a massive net loss for everyone concerned, that people don’t want, in a way that would make the communist Soviet Union proud, with the result being auto companies that are less profitable, provide less jobs, protect less union jobs, and provide lower salaries to all concerned.

SUV’s and trucks are the future- they are safer, more powerful, have more utility, and look better, while ‘green cars’ that run on kitchen oil or batteries are the past- they are deadly, lack power, have little utility, and generally are uglier. SUV’s and trucks are profitable and make money, ‘green cars’ don’t. And yet, it is the Democrats who are pushing auto companies to build less SUV’s and trucks (that are profitable) and build more ‘green cars’ (which are not profitable) with their regulations, taxes, and public relations stunts.

This is why auto union workers are ignorant for supporting the Democratic party- the very initiatives that are the most important to the modern day Democratic party are the very initiatives that will lead to a loss of jobs and salaries for union workers. It is rather the GOP that is best for auto workers- it is the GOP that looks to the jobs and livelihood of the auto workers and says ‘I want you to build more of the stuff that sales better and less of the stuff that sales poorly and thereby make more money and have more jobs’. It is the GOP that is fighting a determined and dirty Democratic attempt to destroy the profits of the auto companies.

The numbers are clear- when the US economy did poorly, many lost their jobs, our income plummeted, and our nation lost ground on everything, it was ‘green cars’ that everyone talked about and focused on and that the government promoted. Now that the economy is rebounding (in spite of Obama and the Democrats efforts), now that jobs are being created, now that incomes are rising again a bit, it is SUV’s and trucks that are selling again.

The lesson to me is quite clear- promote SUV’s and trucks and stop promoting ‘green cars’, and jobs, income, and the United States will be better.

Original Post: A Conservative Teacher

Note: A Conservative Teacher now has comments.

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