Sunday, May 24, 2009

Oil: The Final Nail

There has recently been an uptick in the price of oil and gasoline. Last year, prices for energy raised so high they became the final nail in a floundering economy. Now we sit back and see just as there are some signs the economy may actually find a bottom the prices of energy are again starting to rise. This will place a further burden on an already soft bottom in the economic floor.

There is no way to be certain if the economy has hit bottom yet or not. In my opinion we have not found the bottom. There are some signs that perhaps the crash has slowed and perhaps the slower fall will not force its way through the false bottom. However, we can see that as the economy recovers the gas prices will rise and the dollar will continue its slide reducing purchasing power for Americans. Inflation is waiting at the door of any recovery. Obama has spent us into oblivion and has done nothing to ensure we can keep energy prices lower. Obama's cap and trade fiasco will destroy 2 jobs for every one it creates and American's will be spending by conservative estimates $3,000 more per year due to a coherent policy on energy between increased prices of junk cars and cap and trade caused increases in energy costs.

Last year if we had enacted responsible energy laws that would have allowed drilling we would have a year closer to tapping into future reserves. Instead we got the typical delay tactics. No more drilling, no more nuclear facilities, and no ore ideas from the party of no sincerity. We could have as a nation had a gap filler plan until such time as we are able to move forward with future technology. Instead we got many empty promises and mandates with zero ideas. America elected a clueless follower when we really needed a visionary leader.

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