Saturday, June 14, 2008

THE IGNORANCE BEHIND RISING OIL PRICES!








Sometime ago I wrote to explain the whole business of rising crude oil prices and rising gasoline prices in the United States but it appears that the many Americans are refusing to listen to the facts and insist on blaming the wrong people. It now appears the Democrats have picked up on this lunacy and are using it to their own advantage.

Just this week, Democrats in Congress tried to pass a bill taxing oil company profits because they are just too high. They know that oil companies are not causing the price of crude to go through the roof, that is our market system that is based on supply and demand. Oil traders bid up the price of a barrel of crude based on what they can sell it for and since there is a huge demand but not enough supply, the prices keep going up – get it?

The Saudis are not setting the price of a barrel of crude; the market is! In fact, just recently, the Saudis called the price of oil ridiculous, unrealistic and dangerous. They are going so far as to try to increase production so that oil prices can come down.

Let’s see if you get it – the Saudis who pump the oil and make the money on each barrel sold want to lower the prices – they want to make LESS money. You would never here of an American ever suggest that someone make less if they can make more.

Saudi Arabia knows the dangers of worldwide economic turmoil; it leads to bad things. Some economies can go into a depression and then no one will need oil because business would be at a standstill – read about the Great Depression why don’t you!

They also know that great economic instability can lead to conflict; even armed conflict and some may decide to take the oil instead of paying for it.

My friends and relatives chose to believe that the Arabs are just greedy and are jacking the price of oil up to make the most they can before the oil runs out – wrong in fact even though not in theory.

These same people have chosen to blame the oil companies for jacking up the price of gasoline which only reflect the price of crude oil from which gasoline is made - bozos!

They want the oil companies punished for outrageous profits not realizing how much it costs to find oil and pump it from out of the ground. Just one of those Gulf of Mexico oil platforms (city) costs billions.

We still don’t want to know that we could be finding and pumping more oil in the United States IF Congress would allow more exploration. It is the damn Democrats that are responsible for that and look how fast they want to blame the greedy capitalists for our woes – twits!

Americans need to learn some basic economic facts especially supply and demand; the more supply, the lower the prices. It is also high time we started learning to live with less oil use before it is too late. We have reached the “peak” of oil production which means that oil production is on the way down because we are depleting the resource – fact!

James Hoffa, the president of the Teamsters had a big opinion page in the newspaper yesterday denouncing the greedy oil companies, etc, in pure Communist fashion – flaming the ignorant passion of many Americans because they can – people like that just piss me off to no end!

This leads me to again examine how much damage Democrats can do to this country and weigh it against the damage Republicans already have done to this country. More to follow…









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