Oil: Obama is Wrong, Again, Unsurprisingly

2 links to get you up to speed:
Shanghailist
ABC Local

China has been having gasoline shortages and long lines at their gas pumps when there is gas. They have been monkeying with the price of gasoline the same way we did in the 70's, with the same result. Without being able to fix the supply-side pricing, they fixed the consumer-side pricing. The little secret in this story is that they have been spending upwards of 5% of their federal budget to subsidize gas prices for the little people.

They have decided to stop, and the price of a gallon of gas is going to end up in the low $3/gal range, instead of the current middling $2/gal. range it is now. This is supposed to have the effect of discouraging gas use by the chinese people. We'll see. What we did see is an immediate drop in oil futures prices when the announcement was made. Because speculators -who care more about profits than people on fixed income who need to drive- are hedging against the dollar by buying oil. It looked like the demand might just fall SOME, and the speculation dropped a little, probably temporarily. Of course, that just proves the lie to (how did he get to be a) Senator Obama's contention that a resolution to start tapping our national oil resources would not have any immediate effect on oil prices.

Hold on there.

Let me tell you what would happen.

We announce that we are going to do things that will restore the world oil market to an oversupply condition. The speculators buying 5-year contracts are going to poop their pants and sell their contracts as quickly as they can to cut losses. There will be an oversupply of oil contracts, and the price falls by 50% or more in a month, tops. Then the people who actually buy the OIL on those contracts will have lower costs that will be passed along to the consumers in capitolist markets. They buy oil cheaper, and in about 4 months, the price of gas is cheaper. Like 40-50% cheaper. Right in time for an election.

If the Demicans were really smart, they would jump all over this and claim it as their own baby, and win controlling majorities in both houses, as well as the white house. If the republicrats were smart, they would force the demicans' hand by raising public awareness (and therefore bringing out the Loud Folks) to a point where "we must do something". Then the republicrats would have a chance at not being destroyed in this election cycle and Mr. Hopey-changey would have to keep his day job.

Of course, the Demicans are beholden to the environmentalist-socialist movement and can't be seen encouraging the raping of mother earth or encouraging capitolism; also, enough of the republicrats have had their testes removed by political office-seeking and they don't want to stick their necks out, either. Bold leadership anyone? Bueller? Bueller?

Result? Even odds of seeing even any serious proposals for getting our own oil before the election. After the republicrats lose, they can say how if only they were in power we'd see some hopey-change, and not do anything.

Isn't this a lovely system you voted for?

What's that? You didn't vote?

Oh well, neither did anyone else you know. Who cares anyway? Is there anything on TV? I wish somebody would do something about these stupid gas prices. I'll vote for obammy because he's for change and I want gas prices to change.