I filled up my car today and paid $2.11 a gallon here in The People’s Republic of Connecticut. In some other parts of the nation that don’t have ridiculously high government imposed gas taxes – taxes that they claim they will use to fix the crumbling infrastructure and ill maintained infrastructure they have held tenure over, but somehow always end up in the general fund where they then get spent on vote buying social pet projects – this number is now below $2 a gallon. The last time I remember oil under $2 a gallon was a decade ago. But why is this happening? There are a ton of varying opinions about cause and effect out there. Let’s explore.
First off, the obligatory democrats are always talking out of their ass reference. They knew they were full of shit, we knew it, and because despite every and all efforts by the Obama administration failing to hinder the expansion of US oil recovery, we got more drilling, we now have definite proof. Collectivist Keynesian shitbags can pretend that the economic laws of supply and demand don’t matter – like they do with the reality of human nature and a lot of other natural laws – but reality has a way of bitch-slapping stupid people. You fuckers knew you were lying when you were pretending more oil on the market would not reduce prices, and we now have proven it. The opposition to any more drilling and recovery was primarily because these Marxists fucks want to destroy the brown energy industry to favor their friends, and coincidentally another one of their special interest big donor blocks, in the proven failed green industry.
Back to business now that we have gotten that out of the way. This precipitous price drop, even though I believe it will not remain that low forever (more about that later), is bound to jump start our economy and help a lot of us that now will have extra pocket change. And it doesn’t come without the profiteers trying to screw over the tax payers yet again. The leftists, under the guise of getting more money to fix the very infrastructure they have been neglecting for decades, precisely because they were diverting gas tax dollars to social pet projects, are putting pressure on everyone to get more money from people that are finally getting a much needed and deserved break in the though economic times the leftists have given us.
As if this time the bulk of this extra revenue wouldn’t actually also be diverted to vote buying projects they depend on. Yeah, and pigs will fly too. These assholes count on people’s stupidity and envy. Think about how these will impact us all once prices climb again – and they will. Let us also note that this money grab is not limited to the feds. Many state governments, especially the ones run by democrats that do the same as the feds (like mine), are all hoping to follow that example and do the same. Can’t have people keeping more of their money when they need to buy votes in these desperate times that their base consists of so many of the non-productive. It is almost as if these people’s decision making is based on what can do the most economic harm possible. Of course, when you already believe the money doesn’t belong to the people earning it in the first place, you tend to not bother with these stupid details anyway.
Now that we have gotten that nasty business out of the way, let’s discuss why the prices are dropping as precipitously and fast as they are. The general consensus is that the Saudis are doing this, and it is on purpose. The Saudis, OPEC’s biggest producers, have decided not to cut their output to regulate prices, and are counting on their over $800 billion in reserves to ride out this shorting of the market. The move to let the oil prices plummet is basically driven by their calculated belief that if the price goes too low it will force fledgling the US oil industry, especially the fracking industry that the Russians had been directly targeting without much success so far, I add, to collapse.
The Saudis, like most of the other OPEC nations and Russia, all need oil to be at between $90 and $100 a barrel to keep their current economic plans viable. The supply produced by the US has basically made that impossible, because the extra oil was sooner than later going to force a correction that would drop prices and keep them between $65 to $75 per barrel. And while that drop is something that would be an economic boon to most of the world that depends on oil for energy, it would spell a slow economic death for the oil producing nations that need/want the higher prices. Have no doubt that this move is a calculated attack on the US oil industry. The Saudis are counting that if they keep the prices below $50 a barrel for a while that they can drive the US out of the oil producing. Even more important is their belief that the greens will then prevent that oil producing industry from coming back for decades. This gamble that the greens will prevent the oil production from starting right back up again is based on their observation of how things played out in the 70s, and while many believe that this time it will not work, I think that their gamble isn’t all that crazy. The greens, after all, want to destroy the brown energy sector and don’t give two flying fucks how costly and destructive their agenda is, because in the end it is about them lining their pockets above all else. Most of the big actors have become stinking rich fucking us all over.
The fact is that this economic boon they will usher in and the low gas prices themselves can’t last as the demand and supply curve correct themselves eventually. But then again, we can make some economic moves that will preposition us to come out of this attack against our economy and economic interests, as the winners. The fact is that anything that keeps the price of oil lower than the $90 to $100 per barrel that the actors behind this attack want is a good thing. Lower prices would be a huge hit that forces some of the world’s shittiest nations to change their ways, for lack of funds to cause trouble with, to at a minimum do less harmful things. That would be a big bonus for the world in general. Of course I doubt this administration and the collectivists that are in league with the greens have any desire to do so, and they will actually do things that will undermine that possibility. We need to make sure we push back and prevent them from doing that. Cheap energy is exactly what the world needs right now, just like it needs a lot less big intrusive Keynesian nanny-state government.
In the mean time enjoy this gift for as long as it is allowed to last by the people that want to control us serfs.