On Thursday, it was announced that president Obama’s administration, along with Europeans, decided to immediately release oil from the strategic oil reserves into the market.
I’m shocked, because an increase in oil supply reduces the price of oil!
Wouldn’t you think that a radical liberal like Obama wouldn’t want lower oil prices?
After all, the higher the price of oil, the more likely it is that people will embrace alternative, relatively cheaper, environmentally friendly energy solutions!
Don’t liberals usually want that? (Note: I want alternative energy too, but I don’t necessarily want to get there by having oil prices skyrocket!)
Regarding another aspect of his energy policy, didn’t Obama say that “electricity rates will necessarily skyrocket” under his cap and trade system? Didn’t he say that industry would have to retrofit and pass the costs on to consumers?
Yes, he did:
Again, I’m shocked by the oil release!
Almost every time that Obama’s administration has made a significant policy decision, I immediately notice that 1) The policy is either not the optimal policy choice for America or 2) The policy is actually destructive to America.
In contrast, when it comes to the oil release, I don’t notice any glaring, destructive aspects!
In fact, I believe the oil release might actually benefit most Americans, because there is reason to believe that the release will reduce the effect of corruption that is very likely artificially inflating the price of oil!
Aside from criminal Wall Street traders who manipulate prices, there are also speculators trying to profit by buying and selling oil in a non-manipulative manner.
These speculators are also an area of concern, because they trade oil contracts yet don’t actually take possession of the oil, as an oil company would. As a result, one could easily argue that the price of oil, even absent criminal, manipulative trading, doesn’t represent a fair price based on the supply and demand of oil itself!
As MSNBC reports:
“Chasing speculators out of the market could have a substantial and rapid impact on prices.
‘Over 60 to 70 percent of the oil market is speculative,’ said Gulf Oil chief executive Joseph Petrowski. ‘When the market starts to perceive for one reason or another that either supply is getting more ample or there’s going to be less demand or the economy is weaker, you flush out the speculative interest. So prices grind up and then we bang down.'”
Even if the price of oil wasn’t artificially high, one could argue that it would still be fair to lower oil prices and redistribute some money from oil companies and oil exporting countries to the American middle and lower classes.
Why? As a remedy to the theft of the middle class that’s been occurring. (In this case, the redistribution should be temporary and of an amount that is only enough to reverse the theft and, perhaps, inclusive of an additional amount as a penalty).
The article did not make it clear as to who actually had the authority to release the oil. Regardless, I would think that Obama very likely influenced the decision or made the decision himself!
Assuming that to be the case, why did Obama make a decision that would appear to benefit Americans? Doesn’t he normally make decisions that harm Americans? Yes, he does!
Perhaps he wants to improve the economy temporarily, feeling he must in order to increase his chance of winning re-election in 2012? That way, if he wins, he could revert to his usual ways and spend an extra four years harming America!
One positive act by Obama is certainly not enough to overcome his many destructive policies. It’s certainly not enough to make me believe that he wishes to help America.
However, it’s important for me to call things as I see it: Obama has done something positive!