I had to fill up the tank on my SUV last night. OUCH. It got me thinking a bit (Which is seriously dangerous) about the reasons for the spike in prices. Here’s what I see:
Gas prices generally rise in the summer and decrease in the fall. February is way to early for this type of spike. The Administration of “Duh WON” says they are not responsible for the price jump. MOST free thinking people understand that YES the POTUS doesn’t have that much influence on gas prices directly. HOWEVER; The indirect influence they have is enormous.
The foreign policy of the POTUS has a direct impact on the prices at the pump. For example: The “Arab Spring” which Obama supported is playing havoc with economies around the world. Not to mention the XL Pipeline, had it been celebrated and in progress, the market would absorb some of the fears from overseas. The closing of oil drilling areas coupled with the XL pipeline gives the market shudders at the first sign of trouble in the middle east.
Then I got to thinking about “Duh Won” and his pre-POTUS statements about energy costs “Skyrocketing” and I got a chill… Now lets look at the time frame this is happening in. Election year. Obama is on the ropes. Gas prices were one of the weapons the democrats used against GWB. And now gas prices are triple what they were under Bush. What to do? Well if it were me: I’d do everything I could to make the gas prices SPIKE prior to Republican Convention, then I’d release some oil from the reserves to settle the market. That coupled with the usual price drop in the fall, gas prices would be headed in the right direction when the general election kicks in to high gear. When gas prices are $5.00 a gallon, then they drop to $4.10 a gallon Obama will be a hero… In the minds of the weak.
We’ll see if I’m right. Check back in August.