Tuesday, April 17, 2012

The Price Of Oil: The Crybaby President vs. The Evil Oil Speculators

Today we were treated to ANOTHER episode of "The Crybaby President".  As you well know by now, The Crybaby President ALWAYS finds somebody, something, or some-make-believe to blame for the absolute failure of his administration.

Today, The Crybaby President is blaming the evil Oil Speculators for ruining his economic recovery.  Ignoring the fact that there has been no economic recovery, The Crybaby President fails to see the simplicity of his failure as an economic Renaissance Man.

If only The Crybaby President could see that it is HIS economic policies that have driven the price of Oil up, and NOT the evil Oil Speculators.

Let us begin at the beginning --  The Crybaby President crying:

Pres. Obama Discusses Oil Market Manipulation
Washington, DC
Tuesday, April 17, 2012

President Obama announced a new plan to strengthen federal oversight of oil markets.

The $52 million proposal, which requires congressional passage to take effect, would help federal law enforcement officials detect illegal speculation in the oil markets, which some say plays a role in rising gas prices.

Attorney General Eric Holder and Treasury Secretary Timothy Geithner joined the president for this announcement in the White House Rose Garden.

ZeroHedge sums up The Crybaby President's demonizing of the Oil Speculators succinctly:

After Obama's "fairness doctrine" was roundly rejected by the Senate last night as the doomed from the beginning Buffett Rule was voted down, Obama needs to find some more evil villains for society to demonize, and whom to blame for the failure of central planning, or rather its success in pushing gas prices to all time highs. Today - it is that mysterious, amorphous blob of vile, conspiratorial henchmen known as "oil speculators." Forget that these "speculators" are merely conduits for the Fed to conduct its open market operations, forget that the same free liquidity that drives stocks up relentlessly in nominal terms (what? no demonization of evil stock pumping speculators?), even as it produces ever increasing inflation in all those items not tracked by the Fed, forget that Obama's speech is about to be replica of Jimmy Carter's Crisis of Confidence platitude in 1979. Finally forget that the biggest speculator is none other than the White House with its periodic release of SPR release rumors any time WTI approaches $110. Forget all that, and merely focus on the hypnotic, undulating intonation of the engrossing, populist sermon: that is all that is demanded of you. Everything else is to be ignored. And now since the time of "fairness" is over, it is time to do a shot every time "speculator" is uttered. And get ready for many, many CL margin hikes.

The Crybaby President should be EMBARRASSED for even suggesting that the evil Oil Speculators are the lone wolf behind the rise in Oil prices.  As the liberal mainstream media would tell it, rising gasoline prices are a "sign" of strong economic growth:

Chicago Tribune: 'Pricey Gas Seen as Good, in a Way'
By Mike Bates | March 24, 2012 | 19:22

Today on the Chicago Tribune's front page, above the fold, is the headline "Pricey gas seen as good, in a way." The story also appears on the Los Angeles Times's Web site with the title "Gas prices' jump attests to upbeat economy." Yes, happy days are here again and much of the mainstream media are feeling glad all over, hoping the purported much-improved economy will enhance President Barack Obama's re-election bid. The article notes:

The U.S. recovery has solidified through the fall and so far this year, as shown by strong job reports and last week's news of 1.1% increase in retail sales in February.

The job reports aren't really that strong when you consider the recession ended almost three years ago, as determined by National Bureau of Economic Research, and this is the most sluggish recovery in post-WWII history. As to the increase in February's retail sales, the Associated Press reported:

One factor driving the retail sales increase was a 3.3% rise in gasoline sales last month. It was the biggest increase in nearly a year and reflected a surge in gas prices.

So let's see how this works: Higher gas prices are a significant factor in increased retail sales, which in turn are a reflection of a stronger economy, which in turn is a reason gas prices are higher. Yep, definitely a win-win situation. And ain't Obama doing just one heck of a job?

In recent weeks we've seen press items contending the president can do little, if anything, about higher gas prices. Also we've seen the stories suggesting that, placed in "proper" perspective, gas prices aren't really all that high. Now we're instructed that sky-high prices are just more evidence that the economy is rebounding.

The truth is the mainstream media, having helped sell the American electorate on an unvetted empty suit in 2008, are heavily invested in making him appear a success. We can expect much more of the same through November.

Obama: Rising Gas Prices Means The Economy Is Strengthening [video]

At a press event on the payroll tax cut yesterday, President Obama mentioned how extending the proposal would help Americans pay for gas as the price increases. 

Obama attributed the growing price of oil to a strengthening economy which in turn means demand for oil increases.

"And when gas prices are on the rise again because as the economy strengthens, global demand for oil increases. And if we start seeing significant increases in gas prices, losing that $40 could not come at a worse time," Obama said.

Has there ever been an economic claim by ANY US President that was frosted with more bullshit than The Crybaby President's claim that rising gas prices are attributable to a strengthening economy?  If the economy is strengthening, why do we even need the hokey payroll tax cut to pay for rising gas prices?

Has The Crybaby President even considered, or been told by his brilliant energy staffers that the price of Oil is rising because of his banking-bail-out economic policies?  Debasing the US Dollar by doubling the total US Government debt in three years is hardly a recipe for lower Oil prices...but then that doubling of the nation's debt is not The Crybaby President's fault now is it?  No, it is somebody, something, or some-make-believe that has caused that debt to double...NOT The Crybaby President's brilliant economic policies!

In February 2009, the price of Oil was only $38 a barrel.  At that same time, the US Dollar index was at 89.  Today, April 2012, the US Dollar index is hovering around 79, down over 11%.  Today, April 2012, the price of Oil is hovering around $105 a barrel, up over 175%:

click image to enlarge

How come The Crybaby President never mentions the crumbling currency of our nation as a cause for the rise in Oil prices?  The answer to that is simple...he would have to tell the truth!

Could The Crybaby Presidents attack on the evil Oil Speculators simply be a political ploy to address his fall in the polls due to rising gasoline prices?

Obama's Approval Dips on Gas Prices and Economy

Obama's Approval Rating Plummets As Gas Prices Rise

By The Daily Ticker | Daily Ticker

By Bernice Napach

President Obama today raised the ante on his efforts to limit the rise in oil prices. The president, joined by Treasury Secretary Tim Geithner and Attorney General Eric Holder, called on Congress to adopt tougher rules on speculators in the oil market.

"We can't afford a situation where some speculators can reap millions while millions of American families get the short end of the stick," President Obama said.

The president's $52 million proposal would stiffen penalties for firms found to manipulate markets and raise the amount of money traders would have to put up to back their positions. It would also beef up the enforcement staff of the Commodity Futures Trading Commission and increase spending on technology to oversee and monitor energy markets.

The Daily Ticker's Henry Blodget says the proposal is "embarrassing" because speculators have little to do with the rising price of oil and gasoline. Prices are moving higher, Henry says, because "three billion new capitalists" in India and China are consuming oil and gasoline. It's the balance between supply and demand that determines whether oil prices rise or fall, not speculators, Henry argues.

The International Energy Agency and the U.S. Energy Department both reported last week that global oil supplies are loosening even with Western sanctions on Iranian oil. Saudi Arabia and other producers are increasing output which has helped to put some downward pressure on oil prices. Oil is trading higher on Tuesday afternoon.

Has The Crybaby President and his staff of brilliant economic spin meisters ever considered for a moment that global Oil supplies are sought by other nations besides the great and all powerful USA?  Has the consideration that supply is insufficient to meet "global demand" and the supply shortfall has created a premium for the fuel that makes the world go round?

Published on Apr 17, 2012 by

Fox News‎ 

Seriously, when will The Crybaby President STOP blaming somebody, something, or some-make-believe for all of his failures as the leader of the United States of America?

Always pointing fingers, NEVER LOOKING IN THE MIRROR.

Time for change?  You bet!!!

Got Gold You Can Hold?

Got Silver You Can Squeeze?

It's NOT Too Late To Accumulate!!!

1 comment:

  1. Great post. As usual, it is always the rich guy's fault... Wait a minute - Isn't Barry-O rich? Hmmmm.