Barack Obama’s understanding of how our economy works could fit on the inside flap of a cheap bar room match book cover. Yes, I am painfully aware that this statement may be way too generous in my estimation of the President’s qualifications here. What worries me more is the fact that he does not seem at all interested in associating himself with economic advisers that have any more of an understanding than he does. What he is good at unfortunately, is fixing blame, deflection, fabrication, straw man arguments, ad hominem attacks, non sequiturs, and just generally the worst elements of being a politician as exists in the world today.
Today’s scapegoat dujour is the vile creature known as the speculator. Never mind my gentle snow flakes that Barack Obama actually campaigned on a platform of causing gas prices to increase to levels generally associated with Europe, around $7 to $8 per gallon. It seems as though many Americans were not familiar with that particular campaign pledge, as it was completely ignored by the main stream media. Never mind that without gas prices hitting that level, the moronic green economy agenda will remain a joke to most Americans with at least two functioning grey matter cells in their heads. Without those subtle price signals to force Americans to consider horse drawn wagons a viable alternative form of transportation, it seems as though oil, gas, coal, and propane will remain the consensus number one choice for fulfilling our energy needs.
Having the gas prices spike as promised, due to the market manipulation so expertly inflicted by the EPA, Department of Energy, Department of Transportation, and the Obama White House itself may not have been the best thing electorally for a President with not one single positive accomplishment to his credit, just when his reelection bid is starting to heat up. He has already tried to blame big oil executives, Wall Street, the Jews, we the actual people, and almost everyone else in the world. Earlier this week, he returned to a previous theme, and turned his attention to the Chicago Board Options Exchange and the Chicago Mercantile Exchange. Commodities Speculators are this week’s bogey men.
In case nobody has ever explained it to you, speculators play an important role in how commodities arrive in our market place. Every time you go to the grocery store, and you are able to purchase your groceries, pretty much what ever you are willing to buy for the prices set, thank a speculator. These important members of the supply chain insure that the supply of what ever you wish to purchase is seldom if ever interrupted. Yes it is true that they are capable of making a lot of money doing that, but it is also true that they are capable of losing a lot of money. At the same time, think of life for just one moment without them. The price we pay for their services insures that we do not face shortages in what ever commodity we are buying at any given moment in time.
During the days of the former Soviet Union, the Soviet Citizens would purchase toilet paper by the closet full when ever it would be available at the local stores. The reason for such seemingly bizarre behavior of course was that as a commodity, the supply was far from certain. While the price was fixed, and extremely cheap, it was seldom available to the consumer. As a result, when it did arrive, people bought all they could fit into their government provided homes, and hoped it would last long enough to see them to the next time that particular commodity made its way to the market place. During the 1970’s, our political geniuses decided to interfere with the energy markets, to keep we little people from paying too much at the pump. The result of course was a shortage that saw all of America being able to purchase gasoline only on days designated by the last digit on a vehicle’s licence plate. Even on those days, we often had to wait in lines that stretched for miles.
It might seem counter intuitive, but the cure for high commodities prices is an unfettered market and, wait for it, high commodities prices. As gas prices go up, people will drive less, and producers will make more of what they are being paid so well to make in the first place. By vilifying that segment of the market, which by the way stands between us, and a massive oil shortage, Barack Obama and his staff are accomplishing nothing but making things worse. Making things worse is what he intends to do by the way, he just doesn’t want you to understand that. Before jumping on the band wagon which would seek to single out any class of American as someone to hate, think for just one moment about the consequences that you may be advocating for. When you go to your store, you not only can purchase toilet paper each and every time you go, and in a quantity that is sane, but you have a variety of choices available to you. Several dozen brands with all sorts of differences in price and quality, differences in the sizes of packages. It’s not only toilet paper, but orange juice, meat, coffee, and yes, even gasoline. Rounding up the speculators and chasing them from our shores will put an end to all of that. If there is one thing I know about my fellow American citizens, it is that we like having our lives with a certain amount of convenience. Most of the time, when we realize that convenience is reason for the extra we pay, we are more than willing to pay that price. Just think of speculators as people who provide the convenience of your gasoline always being available, when ever you actually need to purchase your gas.
Tags: Oil Speculators