Saturday, June 21, 2008

It's All About Energy

The 2008 election may very well come down to the candidate that can offer real solutions to our energy problems. Gasoline is at over $4.00 a gallon. This is having a ripple effect on food and other commodities. Former Maine Governor Angus King say catastrophe awaits this winter when we start thinking about filling the heating oil tank to keep warm. I think we need to look at the energy policies being pushed forward by our Presidential Candidates.

First we will look at Obama. Obama has said he would like to provide for a $1,000 middle class tax cut. Will this lower the cost of oil? No, Obama does not want the price of oil to decrease. He wants Americans to change "habits". Obama also is pushing for higher taxes on oil companies. Will this lower the price of oil? No, this will in all likelihood increase the cost of oil. Obama also says he would like further tax rebates to help us pay for high energy costs. Will this reduce the cost of oil? No, it will only allow us more money to pay higher prices all the while inflation further erodes our pay checks. Obama is on record as saying he thinks gasoline prices should rise. Obama is on record saying Americans need to change their habits. Obama believes Americans should not be able to afford heat for their homes. After all it is only a habit that we keep our homes warm. Obama believes Americans should quit working. After all it is a habit commuting to work. I guess we need to stay at home and freeze to death. After all, we can not afford to commute to work, we can not afford vacations or other activities, and we can not afford to keep our homes warm. Obama says John McCain is offering gimmicks. We will have to see if the gimmicks offered by John McCain are better that freezing to death under Obama's plan.

John McCain wants to ease the federal tax for gasoline this summer. Will that decrease the cost of oil. Yes, it will lower the pump price for gasoline. It may not be permanent but it will offer reduced costs today and perhaps help the fragile economy. McCain proposed lifting the moratorium on coastal drilling. Will this lower costs. Yes, right now the oil prices are higher than they should be due to speculation. If the US says it is going to be producing more oil the speculators will not bid the price higher because supply will increase. McCain proposed increasing capacity in our home refineries. Will this reduce the cost oil? Yes, we will increase supply to meet demands. When supply meets or exceeds demand the price of oil will reduce to find the equilibrium point. John McCain says is is open to reconsider ANWR. Will this reduce oil costs? If we were to start drilling in ANWR certainly prices would lower accordingly. In addition we would create jobs which would help the fragile economy.

Are these the gimmicks Obama talks about? John McCains proposals would reduce the cost of oil. Obama clings to the idea that we would not be able to increase supplies for five years or more. Should just wait around and do nothing? If we don't start doing something now we will be learning to live an Amish life style sooner rather than later. We will be reading by candle light. We can be back to time of our forefathers in less than a year and be back living in the stone ages in five years. Obama will return us to the dark ages. He has no plans or ideas. All he talks about is increased taxes. Unfortunately, all he will accomplish is to raise the unemployment rate, raise the interest rate, raise the inflation rate, and make the American life style a miserable one.

Yes I believe this election will come down to energy. The candidate that proposes a realistic plan to ease short term energy pains and resolve long term issues will win. Right now Obama does not have any clue. He offers increased prices for food and energy. He offers increased taxes. Now he has the audacity to say John McCain offers gimmicks?

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