Obama’s big oil lie
Obama made the claim recently that there is nothing he can do that would immediately bring the price of oil back down from its current elevated levels. He is either so arrogant that he thinks he can openly lie to the public, or so ignorant that he truly is clueless when it comes to economics and how free markets work. Feel free to decide for yourself which option you think is the more accurate.
For those of you that truly don’t understand economics, please allow me to explain. For those of you on the Left I’ll type slowly so try to keep up. OPEC (particularly the Middle Eastern members) relies on oil for their entire economies. After all, what else do they have to barter with other than sand, of which we already have plenty? They know we now have enough proven oil reserves that we really don’t need them anymore, but they can’t afford to lose us as a customer. Therefore, the best thing they can do is discourage us from making the front end investment to start producing our own oil in mass quantities.
Bush proved the last time that oil prices spiked that the best way to bring the price down quickly is through the mere threat of producing our own. OPEC knows that once we get the ball rolling there won’t be any stopping us, and once we are up their own economies are doomed. Therefore, they need to react on the front end as soon as they sense that we are serious by opening up their taps and flooding the market. This will force the price down to a point where it no longer makes economic sense for us to even start the process. It’s not the production of our own oil that will bring the price down quickly. It’s the long term threat of that production that forces OPEC to take immediate action and bring it down for us.