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Turning on Obama
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The Pigs of Pigford
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Overstating Boston
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The Obama Watch
Obama’s Oily Desperation
After yesterday’s panicky move, all the world knows our president has nothing left in reserve.
In a move that has everyone from oil analysts to traders to petroleum producers scratching their heads, the Obama Administration announced on Thursday morning that the U.S. along with over two dozen other nations will release 60 million barrels of oil from emergency oil stock piles. Half of the total release, or 30 million barrels, will come from the U.S. Strategic Petroleum Reserve.
News of the release, which will be 2 million barrels per day for 30 days beginning about a week from now, hit oil prices in futures trading. West Texas Intermediate crude oil trading in the U.S., which was already down about $1 on the day, fell more than $3 further to about $91 per barrel. Brent crude, which trades in London, fell almost $7 per barrel
The excuse being used by the Obama Administration and the International Energy Agency for the oil release is that reduced oil exports from Libya are raising energy prices and thus hurting world economies.
However, the Saudis have already said they would increase production to offset losses from Libya — and they have done so. More importantly, and partly in reaction to the Saudi move, oil prices had fallen almost 20% in about six weeks since peaking near $115 in early May over fear about Libyan and Middle Eastern unrest.
The idea that the federal government needed to knock oil prices down further or faster for economic purposes while oil was already in what would be considered a dramatic sell-off is simply not credible.
More likely is that the Obama Administration is sinking into desperation as its economic policies lengthen and deepen the economic downturn — just as similar (and one would have therefore thought discredited) policies in the 1930s were substantially responsible for turning a serious recession into the Great Depression.
When Obama’s pet Fed Chairman Ben “The” Bernanke, the great printer of money, says he’s surprised by the persistent weakness of our barely-recovery, you know those in charge of President Obama’s re-election can see their paychecks ending much sooner than they had anticipated when buying their Dupont Circle condos.
The public is realizing that government is, as Reagan said, the problem… government spending specifically so. Republicans now control the House of Representatives, and they realized it even before the public did. Due to both of those political realities, more damaging Keynesian “stimulus” spending is, mercifully, off the table as a policy choice for Obama.
This leaves Obama with very few arrows in his quiver, none of them sharp, and no accurate archer to fire them. His move to release oil from the Strategic Petroleum Reserve is like shooting a dull arrow at a target and hitting the rock next to the target. Not only did you miss, but you’ve forever ruined the arrow… which wasn’t much of a weapon to begin with.
The release is not enough to create any permanent impact on oil prices. It is enough to cost taxpayers barrels of money in the operational costs of releasing (and then replacing) the oil. And it sticks taxpayers with the unnecessary risk of millions more in loss if oil prices go up before the oil is replaced.
But it’s even worse than all this.
The Saudis had taken some political risk with their erstwhile friends (not that there really are any friends in that part of the world) by agreeing to raise production more than a million barrels per day to offset any shortfalls due to the Libyan turmoil. By releasing oil from emergency supplies, the U.S. risks having the Saudis cut back to their prior production levels… and stay there, even after the two-month duration of Obama’s gambit, burdening us with higher oil prices in mid-summer than we otherwise would have. Obama also leaves the world’s largest oil producer thinking that we stabbed them in the back just as they did something helpful to us (even if it was also helpful to them).
July unleaded gasoline futures (golf clap if you know why they’re called RBOB futures) fell a similar percentage to oil, dropping more than 13 cents to their lowest closing price in three months. This will be President Obama’s first line of rhetorical defense for his premature exudation: “See, I lowered your gas prices.” Unfortunately, he may well get away with that among some sections of the population, especially with those who incorrectly give the president credit for the 40-cent drop in gasoline since early May. In that sense, perhaps the timing of Obama’s move is clever in a most cynical way — the only way in which this Administration is ever clever: cause a small drop in gas prices but take credit for a big drop.
As far as convincing the rest of us, here’s a prediction for you: Obama will go the populist pandering route by describing his feckless desperation as an effort to bash evil speculators. There are several problems with this, however. First, many of what are called “speculators” are simply investment funds that hold retirement account and pension money and are simply looking for investment diversification. Second, professional speculators who were long will take their one-day beating and get right back into the market, perhaps considering the same calculus mentioned above about Saudi Arabia and thinking that an upward path for oil prices, at least in two months, is an even better bet now than it was before. Third, oil was already down about 20% in less than two months, implying that there are also speculators on the short side; speculators are on both sides of every active market. Fourth, and perhaps most importantly, it’s not the government’s job to decide which market participants to punish (or aid) — and to use or risk taxpayer money to mete out such punishment or windfall profits.
In the meantime, it’s not just traders and investors but also entrepreneurs who smell Obama’s fear. And when this level of sheer economic panic is shown by the government, it further depresses the willingness of America’s job creators to take risk to start or expand businesses. After all, the most rational reaction to today’s rash policy move is that the administration thinks that the economic situation must be even worse than we had thought… and that the government may do something else as stupid as this in response. Really, is there any way in which a business owner or manager could interpret yesterday’s action as positive for more than a few hours or days of lower fuel prices?
The minuscule potential economic benefit from a temporary addition of supply to the oil market will be more than offset by the further retrenching of American business into a defensive cocoon as it aims to wait out the reign of the most economically incompetent president since FDR.
Of all the misguided policies implemented during the Obama Administration, this release of oil from our Strategic Petroleum Reserves is the most puzzling and the most representative of its utter cluelessness about markets, business, and economics. It sends multiple wrong messages. The little that it might accomplish will be temporary. And the longer-term response by markets and businessmen will be more than an equal and opposite reaction.
About the Author
Ross Kaminsky is a self-employed trader and investor and is a senior fellow of the Heartland Institute. He is the host of The Ross Kaminsky Show on Denver’s NewsRadio 850 KOA at 11 AM on most Sundays. You can reach Ross by e-mail at rossputin(at)rossputin(dot)com.
Letter to the Editor View all comments (188) | Leave a comment
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l5j6| 6.24.11 @ 6:28AM
A year and a half until this educated idiot, who never really worked in his life and I don't mean "blue collar" work, I mean, he has never really worked at any job other than government, other than "community organizing" - really race hustling to get firms to pony up money, in the name of "his people".
This economic fool needs to be fired in Nov. 2012. Nothin' but Jimma Carter with a suntan.
Mike D.| 6.24.11 @ 8:27AM
Ah, Jimmy Carter, the human roll of toilet paper that every anti-american dictator and anti-semite wiped their @sses with. That Jimmy Carter?
lydia | 6.24.11 @ 8:52AM
We are in deep doo-doo, but America has untapped resources. Obama is at the end of his rope, and will be dragged, kicking and screaming, to make the decisions that any other thinking person would have made long ago.
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Handy| 6.26.11 @ 4:50PM
Do you give good blow jobs?
Curtis Rasmussen| 6.24.11 @ 2:45PM
Obama is the Milli Vanilli of presidents. The people will expose this fraud soon.
l5j6| 6.24.11 @ 3:17PM
Ha, ha.......well put!
Frank| 6.25.11 @ 12:19PM
Well said!
Pat Spooner| 6.24.11 @ 4:18PM
l5j6, to state that the Obummer is an educated idiot is incorrect - he doesn't have a clue what he is doing.
Mike Giles| 6.25.11 @ 4:10PM
"Educated" in the same manner that most of our academia is "educated". They've attended the "right" schools and have all the "correct" credentials but have only a fleeting relationship with reality. Like many of his class, Obumbler has been protected all his life from that rude awaking, most of us experience once we leave the hands of the chattering classes and enter the real world. He's not "stupid" - as in unable to learn, but "ignorant" - as in never having had the opportunity to learn. You should understand, to most of the chattering classes money is something that just appears out of thin air when you say or write the "right" thing. This explains their seeming inability to deal with the idea of cause and effect. I think the term is "magical thinking". In a way Obamboozle, is no more advanced than some South Seas Cargo Cult devotee.
Patrick| 6.27.11 @ 2:43AM
He is not merely ignorant, for he is willfully so. That leads to the word "asinine", which is to resemble a jackass. This is pertinent due to the apt choice of making the jackass the mascot of the Democratic Party.
Colin Foy| 6.24.11 @ 4:20PM
This move didn't create one stinking job!
Another pointless move by a D.C. ruling class idiot and graduate of SNAFU U.
Alan Bro0ks| 6.24.11 @ 6:44PM
At least Obama cares somewhat about America, unlike the Kennedys and Bushes who only deep down cared about their dynasties.
So if you want to elect a Republican next year as POTUS, please do better; don't try to fob off a Dole or McCain-- if you are serious (no one can read your minds) don't continue to cut off your noses to spite your faces.
Alan Brooks| 6.24.11 @ 6:49PM
BTW, I wrote Dole and McCain above because the Bushes were (are) competent people, unlike Dole & McCain: but the motivation of the Bushes was (is) merely dynastic in ambition.
But it is water under the bridge; what matters is for you to PLEASE run someone good next year if you want to do more than diss Obama.
Albert| 6.24.11 @ 8:21PM
OK. Here we go again. Bush was no conservative. McCain is a media pleaser, and nothing more. At least Bush was knew up from down and is an honorable man, despite his left-ish politics. Neither, however represents the conservative wing of ANY party, much less the Republican. Doing "better" is easy, if the Party stops letting Democrat cross-over votes select the Party's candidate.
Now for the meat of the lesson. The notion that President Bozo cares "somewhat" or otherwise, or even at all! about America is ludicrous on its face. This empty suit cares only for his ideology, which is Marxist in origin and well funded by international Socialists in practice, and for his ego. Frankly it is astonishing that his ego should come into play, considering that he is a "man" almost totally devoid of accomplishment. Of what does he boast? And please do not cite his academic background since that was clearly purchased, not achieved. [I graduated "cum laude" from Sonoma State University with a Bachelor of Arts degree in History and I can prove this with the appropriate records. President Bozo has steadfastly refused to release his academic records. Furthermore, I will match my education against his any day.] Plus it can not be objectively demonstrated that he is even eligible to hold office!!!
Why do we waste time with this defacto zero, this absolute nothing of a man, this person whose loyalties lie with an ideology rather than a people?! This Bozo claims to have been born "one of us" but his statements, his alliances, his confidants, and his "friends", all point to an allegiance to the ideology of Socialism, and only that! He is certainly not loyal to the American people, nor can any evidence be presented to claim that he is.
The notion that President Bozo "cares somewhat about America" is a completely unsupportable assertion.
Alan Brooks| 6.24.11 @ 9:15PM
Partly true: no one knows what goes on in his mind (or anyone's). But remember, America is not one 'thing' IMO it a salad bowl, not a melting pot; what is real to a white is not the same to a black or Asian, etc. Obama's sending Churchill's bust back to England is illustrative, because why should a black man from Chi-town care any more about Churchill than a Confederate cares about Abe Lincoln? no I'm not celebrating relativism, because though I might not technically be a conservative, I AM old fashioned (i.e. I think progress is material and nothing more; families and individuals merely stumble on to their fates). To ask Obama to revere Churchill is almost like asking an Irishman to admire Cromwell, or something along that line-- no point in attempting to because there is no commonality.
What I admire about Obama is that he is no dynasticist, but if his daughters go into politics I wont admire him anymore. Or them.
Mike| 6.24.11 @ 10:08PM
Didn't Churchill and his troops fight alongside the U.S.? Not sure if that's the same as a confederate fighting against what Lincoln stood for, Alan.
Alan Brooks| 6.24.11 @ 11:41PM
There is no real analogy to refer to. But you know people are cliquish and clannish, and you are asking Obama be fair when his opponents don't have to be. You insist that though Obama is black he must pay lip service to white culture, which is comparable to asking a white Southerner to be a New Englander in taste & temperament.
Alan Brooks| 6.24.11 @ 11:49PM
Going beyond all of this is what I wrote above:
"what matters is for you to PLEASE run someone good next year if you want to do more than diss Obama."
Hillyer wrote a good piece in today's blog on why the GOP mind is all over the road: for instance driving in the celebrity culture lane fast lane- and you don't stay in the fast lane very long.
So, again, if you run a top-flight candidate next year then you will have been validated; if not then we go round the block again and again.
roblacal| 6.25.11 @ 5:26AM
Hey, Obama is half White remember? Mulato is more appropriate for this jive turkey.
"Obama's sending Churchill's bust back to England is illustrative,"
It proves he's a smug arrogant *rick who doesn't know his place. Unqualified and unworthy.
Mike Giles| 6.25.11 @ 4:16PM
Just out of curiosity, should Obama feel a sort of kinship with Churchill? Both are the children of an American mother and a foreign father.
Frank| 6.25.11 @ 12:29PM
Obama is supposed to represent all the American people -- I think he made that point a few times while running for office. To me, that also means having a sense of our history, and a part of that was our support and friendship to Great Britain during World War 2.
If it offended him personally, that's tough. He could have put it somewhere, where he wouldn't have to see it. No. Instead he goes the "in your face" route, like the community organizer that he is, and he sends it to the Brit embassy. He has no class.
rou
Daisy| 6.25.11 @ 12:44PM
Not an American, nor does he love America.
That is very clear.
Mistral| 6.24.11 @ 6:45AM
I must revise my earlier and rather understated views on this imbecile's level of intelligence. Is there even a working cell in the brain? Is there a brain at all?
Timothy L. Pennell| 6.24.11 @ 6:46AM
So, if you follow Hussein's own "logic" on this move, he's telling us that MORE SUPPLY, lowers the price. I do believe, he's referencing Economics 101 - Supply and Demand.
Whaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaat?
So, we CAN Drill our way out of this?
You mean like, if we FLOOD THE MARKETS with newly Printed Dollars, they cost LESS? They're worth LESS? What about something like......Faberge Eggs? They're really EXPENSIVE. Is Barry saying that, if there were LOTS of them, instead of so few, they would cost less? Where is this new found logic coming from.
It comes from his POLL NUMBERS. It's all due to his RE-ELECTION Campaign.
PROOF POSITIVE, that all of this Economic MISERY, has been done PURPOSELY.
If he wanted JOBS, why is he SUEING Boeing? Why has he SHUT DOWN Domestic Drilling? Why is he REGULATING American Companies out of existence?
Because, before you can FUNDAMENTALLY TRANSFORM something, you have to TEAR DOWN what was there, before.
This Coke Head, Street Hustling, Muslim Boy, thinks that HE is comparable to our Founding Fathers. HIM. The Marxist. The Communist. The FRIEND of Terrorists. HAMAS' Deliverer. The little Boy from the Muslim Schools of Indonesia. HE knows best.
"And I saw the BEAST, rise from the Sea. And he was given a MOUTH, to speak Haughty and Blasphemous words. And he was allowed to exercise authority for forty two months." Revelation 13-5.
He has to GO.
Handy| 6.24.11 @ 6:59AM
You are delightfully hilarious.
WRTolkas| 6.24.11 @ 8:13AM
Dear Mr. Pennell,
Wow, now tell us what your really think. I need to cut and copy some of your remarks for my phrases to keep. Keep up the spirit. Keep up the fight.
Just as an aside, I just returned from a business trip from Japan. With their nuclear power plants out, electricity is rationed or voluntarily cut. All non-essential conveniences are cutoff or cut back. No air-conditioning in the offices. The real fun part is Japan will decommission all of their nukes and switch to "renewable" power generation. So solar and wind will have to provide 20-to-25% of Japan's electric power. The people want this, the politicians want this because the people want this; but the engineers are screaming: "Do you know what you are asking?" I expect Japan will enter a new "Dark Age" within the next two years. This is a blueprint of what that community organizer wants for this country.
Have a safe weekend,
WRTolkas
KyMouse| 6.24.11 @ 9:36AM
In mid-March all we heard about was the disaster in Japan. Now it has all but vanished from the news. Thanks for this glimpse, Mr. Tolkas. I've been wondering how things are going.
Ed| 6.24.11 @ 11:34AM
We had rationing during WWII because there was no other choice for national survival. The libs want to ration energy because they get to decide who gets it. Frank Herbert (the author of Dune) once wrote: "Scratch a liberal and find a closet aristocrat".
play nice| 6.25.11 @ 1:30PM
Japan will be a tough place to recharge an electric car.
Handy| 6.26.11 @ 4:59PM
It is not fair to point out the obvious.
Redstateboy| 6.24.11 @ 8:54AM
Spot on Tim...! Das Messiah has suddenly had a Revelation??? Make something more plentiful and Bingo?! the value of it falls.. No!?!! Really!?? and he attended Harvard to learn this eh?? but lemme see if I get this straight.. HIS Interior Dept. is dragging it's feet issuing drilling permits yet his Left Wing Kook base Hates Oil because it lends to Man Made Global Warming.. Look up the word: "Neurotic"
Anthony| 6.24.11 @ 9:11AM
Tim, Absolutely SPOT ON!!
I can see 2012 from my house!!!
dmerrin10000| 6.24.11 @ 11:42PM
This may be one of the dumbest comments I've read in a long time, but I scrolled to get here, and there were a lot of other dumb ones along the way. And then I read the replies to this je*koff Tim, with his racism and his stupid biblical quote-- and they were dumb, too.
I sometimes think liberals and the left generally ought to tone down the jokes about the stupidity of the right, but honestly, I don't know how else to characterize the posts and replies I'm reading here-- and it's difficult to imagine anyone but a stupid person posting such stuff. One example is someone up above named Albert, who not only writes some foolish things about actual policy and politics, but names his college and tells us he can provide documents to prove as much-- pathetic. And dollars to doughnuts, he doesn't even know why he's so embarrassing to read.
In any case, what is most likely to lead to the president's reelection is the basic racism and foolishness on display here. Americans will not elect a person supported by such people, and when a republican nominee is selected, the public will have an actual person to compare to the president instead of an abstract question of whether SOMEONE else would be a better president. Once the GOP nominee is selected, the race will be over.
ushie mayna| 6.25.11 @ 1:33AM
OMG!→ It is really true!
dmerrin10000- proves it!
"You can lead a liberal to the truth but you can't make them think."
Thanks dmerrin10000, you are living proof that the so mentioned quote is 100% true.
I love it→♥← when libbies screed on about racism et. el. Don't you?
Daisy| 6.25.11 @ 12:49PM
dmwhatever -- O's internal polls are terrible. He's down among all of his precious base groups. He's scared. And we're all suffering for it.
Handy| 6.24.11 @ 6:55AM
With all due respect, Mr. Kaminsky,
The markets respond rationally. Release of the Strategic Oil Reserve is stupid for all the reasons you cite, but it is emblematic of Obama's desperation.
Here is what the markets see. Loosening of drilling rights. Opening of natural gas fields. The issuance of more nuclear plant licenses. Maybe even an end to the fuel reprocessing ban.
We are in deep doo-doo, but America has untapped resources. Obama is at the end of his rope, and will be dragged, kicking and screaming, to make the decisions that any other thinking person would have made long ago.
Now, let's hear Bill OReilly talk about how those poor speculators took a bath.
Ross Kaminsky | 6.24.11 @ 8:21AM
Handy,
With all due respect...
I've been a professional trader, including in futures markets, for over 20 years and I can tell you as an absolute fact that (1) markets do not always respond rationally, and (2) even when they do they are often responding to incomplete information.
Loosening of drilling rights is a mirage. Natural gas is already very cheap and not easy to use in the short-term as a substitute for oil. Nuclear power plants will take much longer to be approved and constructed following Fukushima.
Of course America has untapped resources. It's part of the reason Obama dislikes the US so much. It's so unfair that we have so much while others have so little, after all...
As for Bill O'Reilly, he's at his least intelligent when it comes to energy policy and understanding markets.
John Navratil| 6.24.11 @ 10:04AM
Mr. Kaminsky,
Great piece. I also agree that markets driven psychologically as well as analytically. Therein lies the problem. Obama has just entered the market as an unpredictable third party to every transaction, playing with other people's money. It's hard enough trying to look the the future without the spectre of Obama looming and wondering what he will do.
Just when you think this fool has done the stupidest thing possible, there he goes and fools us again. How do you do what you do?
Oldefarte| 6.24.11 @ 11:50AM
Ross, don't waste your time responding to this idiot, who makes about as much sense as a SCREEN DOOR IN A SUBMARINE!!!!!!
Oldefarte| 6.24.11 @ 11:50AM
Ross, don't waste your time responding to this idiot, who makes about as much sense as a SCREEN DOOR IN A SUBMARINE!!!!!!
Oldefarte| 6.24.11 @ 11:50AM
Ross, don't waste your time responding to this idiot, who makes about as much sense as a SCREEN DOOR IN A SUBMARINE!!!!!!
Handy| 6.26.11 @ 5:21PM
Sorry that I did not respond sooner.
Wow!!! 20 years as a trader? You must have been unborn in the 70's. I, on the other hand, have been betting horses, successfully, for 45 years.
What do you want to bet on, hotshot? The DJIA? Gold? Corn? The Travers Stakes?
No brokers need apply. Got any dough of your own you want to risk?
Didn't think so.
O'Reilly is still an idiot when it comes to energy. He couldn't find his ass in a bushel full of ethanol.
Jim Thunder| 6.24.11 @ 6:57AM
1) I'd like to know the names of the people who were in on this decision. 2) Don't forget the cost of oil to replace the cheaper oil we used to fill the Reserve. 3) The Reserve is meant for an emergency, especially in the supply to our Navy.
Gary| 6.24.11 @ 7:15AM
Apparently, The Muslim has a different definition of "emergency."
Michael Tomlinson| 6.24.11 @ 7:25AM
Were oil executives involved in this decision? Wouldn't it have been cheaper to just stop supporting the al Qaeda rebels in Libya?
PolishKnight| 6.24.11 @ 5:05PM
BINGO!
This is a particular stupid decision on Obama's part. If his goal is to take the USA down for the socialist revolution, this isn't helping matters much. It's also not going to help him politically since it trashes a leftist specious claim that it's not necessary to drill for more oil but rather curb "speculation" and use the national reserves in that strategy.
Perhaps... Obama looked in the mirror, saw some more gray hairs, and panicked. His foray into Libya isn't doing so well and he's having political problems with it. Part of those political problems is the cut in oil supply due to the conflict. So if he opens up the reserves, and lowers prices for the consumers, he'll get higher poll numbers, at least in the short run, to help him out. Plus it looks like he's doing something other than being a non-Weinergate news item. :-)
ushie mayna| 6.25.11 @ 2:05AM
Yes!..Right!
The Reserve IS meant for an emergency!
And, it is up to the POTUS to decide when an emergency emerges.
Take a look at the statistics regarding the re-election of Obama..(ô¿ô)...SEE→It IS an emergency! Obama has to do something to try to change those nasty statistics. Obama is in crisis...high alert!....Bring in the Marines....Dial 911...."Faster faster the lights are turning red."
Look!
The economy. Home foreclosures,inflation,High energy costs,4 wars,Rising food costs,Unemployment,Loss of global respect,Health insurance costs,The $14,000,000,000,000+ debt...etc.
It's Bush's fault, it's Sarah Palin's fault,it's pure RACISM; NO→It's the Failure of Barry!
>>
beebop| 6.24.11 @ 6:59AM
Too little and far too late. Locally, prices at the pump have dropped from the insane $4.19 to $3.29 in roughly four weeks. This feels akin to the 17 hours needed to decide to go for obl ... at least to me. But. He has no other resources at his disposal so is desperate and it shows. Maybe he's trying to lure back the white SUV driving soccor mom as she spends her summer ferrying her kids from pool to play dates?
Kevin Dunn| 6.24.11 @ 7:06AM
Worse yet, keeping the price of oil artificially down will act as a disincentive to develop new fields and sources, such as shales.
irish19| 6.24.11 @ 2:01PM
An excellent point. The development of new fields and exploiting such things as shales and oil sands means "renewables" become less financially viable.
Mimi| 6.24.11 @ 7:13AM
Another " Shot in the dark"...every time he takes a step it's in DOG doo doo! Will someone tell him to get in the Biden meeting room and GET THIS SHOW ON THE ROAD ? Play acting as President isn't cutting it...Work, and put forth some EFFORT or quit before you get fired!!!
Rick| 6.24.11 @ 7:17AM
Your a rasist!
Gary| 6.24.11 @ 7:28AM
Whatever it takes...
George True| 6.24.11 @ 7:31AM
Your (You+are=You're) a rasist (racist).
Red Bubba| 6.24.11 @ 8:11AM
Your' a grammer nazi;
John Navratil| 6.24.11 @ 10:07AM
I hoap ewe right ingest
Stephanie| 6.24.11 @ 8:12AM
Goodness Rick, did you miss 4th grade english?
And yeah, we're all racists because we disagree with the first biracial president for destroying our country. Now back to the basement with you!
Anthony| 6.24.11 @ 9:24AM
Ah, I see we have Rick, another Harvard cum laude leftist weighing in.
Rick, your brilliance is only overshadowed by your exquisite grammer and spellling!!!
George True| 6.24.11 @ 11:54AM
I am pretty sure Rick's comment was meant as a parody of those who cry racist whenever anyone disagrees with Obungler on policy matters.
Red: I like your term "grammar nazi". I'll take it as a compliment. John N: Excellently clever, sir.
Frank| 6.25.11 @ 12:38PM
I love it when someone corrects someone else's spelling and THEY make an error. The word is "grammar" not "grammer."
CharlieEcho| 6.24.11 @ 9:31AM
Rick; If you voted for Mr. Obama to prove you are not a racist, please vote against him next time to prove you are not an idiot.
Mimi| 6.24.11 @ 10:01AM
Rick...If this is a rasist post...will you please send my message to Obama and the Democrats and tell them ALL togo back to WORK? This is your er BOSS and MOTHER talking!!!!
ushie mayna| 6.25.11 @ 2:07AM
Right Rickie→We're all RACISTS, and we're comin ta get ya!
Sam| 6.24.11 @ 7:22AM
"July unleaded gasoline futures (golf clap if you know why they're called RBOB futures) . . ."
RBOB stands for Reformulated Blendstock for Oxygenate Blending. It was instituted approx 5-6 years ago when the additive methyl tertiary butyl ether (MTBE) was discontinued. The type of gasoline that underlies the RBOB futures contract is straight gasoline. Ethanol is usually blended in at the distribution terminal. It's also idiotic as far as energy policy goes. Ethanol has less energy per gallon than gasoline, which is why your car's mileage goes down when using this stuff. It dilutes the gasoline supply.
Ross Kaminsky | 6.24.11 @ 8:21AM
[golf clap]
Energy Man | 6.24.11 @ 11:32AM
Kaminsky, I know what RBOB illustrates, but what the hell is a "Golf Clap"?
Ross Kaminsky | 6.24.11 @ 12:07PM
http://www.urbandictionary.com.....m=golfclap
SugartownSuper| 6.24.11 @ 12:57PM
To be confused neither with PBOB nor CBOB!
Akaky| 6.24.11 @ 4:13PM
Energy Man, it means you should have worn gloves when handling the driver on the first hole.
play nice| 6.25.11 @ 1:40PM
"IN THE HOLE"!
Deborah D | 6.24.11 @ 11:02AM
Doesn't ethanol also muck up your engine? What idiocy is it for Americans to plant a food product (corn), use it for fuel, which drives the cost of corn up, subsidize the production of fuel for ethanol with our tax dollars, pay more for it while it gives us less mileage and gums up our engines? I'm sure there's more, but why are we spending more for less? Oh, that's right "global warming" or is it "climate change." Or is it someone's pipe dream paid for by the American taxpayer which fills the pockets of God knows who all. I'm sick of this waste and fraud and abuse. Sorry about the soapbox.
Ross Kaminsky | 6.24.11 @ 11:08AM
Deborah,
I put it briefly thus: What sort of person thinks it's good policy for a nation to burn its food?
Energy Man | 6.24.11 @ 11:35AM
People who like well done steaks?
Ross Kaminsky | 6.24.11 @ 12:07PM
You're way too sharp for me today, Energy Man.
Deborah D | 6.25.11 @ 9:01AM
Amen, Mr. Kaminsky.
Gary| 6.24.11 @ 7:26AM
The Muslim is learning that leadership is a lot more difficult than the economic vandalism he's been inflicting upon us. Blowback must be a new experience for the community organizer. His band of economic assassins must be running around like a paniced ant colony. It'd be funny if it wasn't wrecking the entire world.
As our gal, Sarah, said, "November can't come soon enough."
oldfart| 6.24.11 @ 7:28AM
As mentioned, the officials of FDR's administration could not understand why the US economy was not improving while the rest of the world was recovering by the mid 1930's. Keynesian economics DOES NOT WORK in the long haul. Hello out there in the hallowed halls of higher education. Don't you know that those who not study history are DOOMED to repeat it.
You would think that after Vietnam that SOMEONE inside the Beltway would have learned that throwing money at a problem solves nothing but create more problems.
I asked my three sons – now all grown men – if they were taught ANYTHING about Thomas Jefferson in school. Other than the fact that he was a President – NOTHING.
We have poured trillions of dollars into our education system and they only thing a higher education gets you is 'touchie feelie', 'don't offend anyone', and white males are responsible for all the evils of the world. What a pile of bovine excrement.
oldfart| 6.24.11 @ 7:28AM
Sorry for the rant but I am pissed.
Gary| 6.24.11 @ 7:47AM
I'm honored by your company. I'm PISSED, too. I think we've got lots of friends we haven't even met.
Pecos Pete| 6.24.11 @ 7:55AM
Me too!
Redstateboy| 6.24.11 @ 9:43AM
I'm Fired-up!
Gary| 6.24.11 @ 7:42AM
oldfart,You said, "You would think that after Vietnam that SOMEONE inside the Beltway would have learned that throwing money at a problem solves nothing but create more problems."
Yes, you would, unless those in charge are throwing all this taxpayer money at themselves. Kinda' puts a different slant on the definition of "solution" when you think about it.
Question: What problem has gotten better after our favorite government has put its best and brightest in charge, staffed up and thrown taxpayer money at it? The war on drugs? The war on poverty? Education? Energy? How about just plain wars. How's that been going?
The purpose of government is to create problems then throw taxpayer money at your cronies to "fix" them. Isn't it funny how they say, "If we just had more money, we could fix this problem." How long has that been going on?
I'm repeating myself...
oldfart| 6.24.11 @ 8:11AM
The Titanic (ship of state) is sinking and the first class passengers (educated idiots and minions) are asking for ice in the drinks.
Don't get me wrong - I am not against eduction. An education requires you to learn to think for yourself. Our children are being given propaganda and told not to question it.
The book Animal Farm comes to mind. That is not part of the curriculum anymore either – might cause students to question their teachers. Tsk tsk – can't have that. People actually thinking for themselves. Horror of horrors.
SpiralArchitect| 6.24.11 @ 2:37PM
To Gov the solution is always money soluble.
Stephanie| 6.24.11 @ 8:17AM
No no, Oldfart! Tell it like it is!. But you forgot about teaching the little brains full of mush about gay sex and how to put a condom on a banana. Now, these are important too!
TrueBlue| 6.24.11 @ 4:12PM
And how to use the various illegal drugs, and where to get them.
Gary| 6.25.11 @ 12:45AM
And, how having two mommies is as American as apple pie.
play nice| 6.25.11 @ 1:44PM
Obama had 2 Commies...see how that worked out.
Michael Tomlinson| 6.24.11 @ 7:28AM
What happens to prices when Obama stops "de-stimulating" the markets? Could there be a price spike. The "Cool Dude" who can never do anything right strikes again!
This is Obama's depression and he and Biden should RESIGN NOW!
Gary| 6.24.11 @ 8:06AM
Since that would be the honorable thing to do, we know it won't happen.
Winterhawk| 6.24.11 @ 7:31AM
It has never been more evident as to how big of a failure this son of luc ifer is.
Gary| 6.24.11 @ 7:43AM
Amen, Winterhawk.
The Muslim, Pelosi, Reid... the Axis of Evil.
TruSkeptik| 6.24.11 @ 7:50AM
"What miserable drones and traitors have I nourished and brought up in my household, who let their lord be treated with such shameful contempt by a low-born cleric?"
Intelligent Design| 6.24.11 @ 7:51AM
Obama and his fellow Demo-Socialists have figured it out: 60% of eligible voters can hardly wait to further clean house in the Senate, and restore the office of the president in November 2012. The economy and security of the United States, and freedom everywhere, are at stake.
Gary| 6.24.11 @ 7:58AM
Hence the panic.
SpiralArchitect| 6.24.11 @ 2:38PM
Only months left until marshal law. Pity.
Gary| 6.24.11 @ 7:57AM
The real entertainment will be watching the enemdia scramble to continue protecting The Muslim in the coming weeks and months.
I think there is a chance they'll eventuall turn on him just to salvage what remains of their own reputations, if that's possible.
Mike D.| 6.24.11 @ 8:22AM
The media whored whatever they had resembling a reputation when they got this reject elected. They will never turn on him, he's a number on a roulette wheel and they have put all their cash on that number and they will work under the table getting the wheel to somehow stop on that number. They will never turn on the hammer, sickle and cresent moon guy, never.
The propaganda the media will throw to protect this disaster of a human being in the next 1.5 years will be something akin to Pravda and the old Soviet Union.
Gary| 6.25.11 @ 12:48AM
I wonder... you may be right. But, if it gets bad enough, I think they'd jump ship to save themselves. We'll see. As I mentined, it'll be entertaining to watch.
Red Bubba| 6.24.11 @ 8:16AM
Remember that gas prices went down 20%, and then 0 released the reserve. As early as next week the propaganda media will reverse the chronology. The story will be that 0's quick action lowered gas prices (as moochelle stood by with her "toned arms")..
SpiralArchitect| 6.24.11 @ 2:55PM
I am glad that she is finally
happyproud to be an American now that Obummer is POTUS.Daisy| 6.25.11 @ 12:58PM
And enjoying yet another vacation, this time in Africa. How many does that make?
bluecollarbytes| 6.24.11 @ 8:22AM
If Obama is 'desperate' , it's because he and his personal ideology are one- meaning he has no choice but to try anything except encourage or even allow development of new 'domestic' resources. Obama is more of a true believer than most of his supporters, truly making him our nation's leading radical.
Establishment pundits continue to have expectations of the messiah based on past experiences with presidents and 'the general political process'. How will he move to the middle, as he surely must do? yeah, right.
Of course Obama will deceive, but he cannot change the inner core- his rock-solid ideology.
bluecollarbytes| 6.24.11 @ 8:29AM
and, this is why Obama's ideology needs to be attacked, contrary to the opinion of inbred political handlers and some candidates. Of course if their minds and hearts aren't into it- winning the real fight, not just winning an election, then Obama's 'legacy' will be largely safe, which is what I expect to happen...so far...)
Tenn Slim| 6.24.11 @ 8:53AM
Cloward Piven economics at work.
Obama knows precisely what he is doing. Further erorsion of the GNP, Higher prices all round, more pain for the folks.
His actions are straight out of the Center For American Progress white papers.
Read, watch, act, as the US Capitalistic system flows down the spiral of economic doom.
These folks will never go quietly into the night in 2012.
end
Semper Fi
SpiralArchitect| 6.24.11 @ 2:57PM
122112 is a very meaningful date. Yes, indeed.
Skippy| 6.25.11 @ 6:47PM
In what way?
Anthony| 6.24.11 @ 9:02AM
Gee, I wonder if the other oily members of the D party and their whores in the MSM will remember their cant during the Bush Administration, of the futility of using the emergency oil reserves as a stop gap measure?
Gee, I also wonder if Obozo will reconsider the wisdom of Gov. Palin who reminded these moronic no growth Marxist leftists that "Drill Baby Drill" is sound energy and national security policy? Or are these morons still laughing at the woman who is running circles around them, eh Mr. O'Donnel?
Apparently, Gov. Palin was right again, the slightest disruption, or perceived disruption, in a tight supply market can cause huge ripples.
Gee, I also finally wonder if the R establishment will get their collective heads out of their butts and realize Palin and Bachmann are our best hopes in the R party to save this nation?
Nah, will never happen. Stupid is, as stupid does!!
JP| 6.24.11 @ 9:13AM
Think if a short seller had an inkling of the President's intentions. He would have made a mint!
Michael L. Hauschild| 6.24.11 @ 11:45AM
I am guessing they did, and I am guessing they were democrats, and I am guessing they will be donors to fill in the spaces on that BILLION dolar campaign chest. Thanks for providing us another possible reason for this debacle.
SpiralArchitect| 6.24.11 @ 3:04PM
Bingo.
Gary| 6.25.11 @ 12:51AM
Bingo!
jackc| 6.24.11 @ 9:21AM
Obama thrives on using cunning strategies to get re-elected to power, and to hoard money, while he peddles welfare, sacrifice, and poverty on America.
Government and business must be orthogonal, for recovering America from the current precipice of economic disaster, through a free market model that thrives on the bounty of the human spirit, incubated in hope - not in fear and government control/interference.
Mike Gabel| 6.24.11 @ 9:32AM
Obama is the most stupid smart person I've ever witnessed.
Sarbojit| 6.24.11 @ 9:41AM
I've always assumed that the US Strategic Oil Reserve was exactly that - strategic. It was to ensure the un-interrupted fueling of strategic armed forces.
Oil is always a vital ingredient of war. Hitler was running out of oil, so he made a mad dash for the Caucasus, only to have his army smashed on the ruins of Staliningrad. This was the first major defeat he suffered and marked the beginning of the end.
Obama must be really desperately afraid that his fading re-election hopes constitutes a strategic or existential threat. And all along I thought he hated oil and wanted less not more, more expensive than less. He must be seriously pissed off that he doesn't have a strategic reserve of windmills or electric cars to unleash on the market.
SpiralArchitect| 6.24.11 @ 3:07PM
Hauschild is onto something here. A grand plan to generate new donors out of old / maxed out donors.
Have you considered| 6.24.11 @ 9:42AM
Ross, great article. I immediately had all the same thoughts when I saw that he was going to release the SPR with the exception that, I did not consider that he would get credit for the Previous drop in oil prices (which I believe was caused by an expected decrease in demand in the US) in addition to the slight drop created by this short term bump in supply.
On an aside, I would love to see you publish articles on two topics that seem largely unexplained to the masses; the reason counterfeiting currency is illegal (to draw the analogy to QE) and; the evolution of the executive order (how this power evolved when not found in Article 2)
Dustoff| 6.24.11 @ 9:43AM
The worst is yet to come guys. This mornings news. O-dumber's gang (Timmy, I don't pay my texes, G) say's they must raised taxes on small biz because the gov needs it.
Yeah dummy kill the goose for good!
Michael L. Hauschild| 6.24.11 @ 9:45AM
Why all the complicated analysis? He did this to lower the price of gas for the summer hoping the election would be August fourth, it won't be of course and he is running out of stuff. Desparation, nothing more.
Dustoff| 6.24.11 @ 9:52AM
Very true. Wait till we have to re-fill it.
OUCH!
Jack Olson| 6.24.11 @ 10:05AM
Why did Obama pump oil out of the Strategic Petroleum Reserve?
Because he couldn't borrow any from the Chinese.
megapotamus| 6.24.11 @ 10:14AM
One thing I see no one observing is that the true purpose of the Strategic Reserve is to keep our tanks running and planes flying when we might, for example, be under an overseas oil embargo and have had our domestic fields nuked, or some such dire national emergency. Only this sort of eventuality gives the whole enterprise any utility. So I guess we are now in a world where such a scenario is close to impossible. I'm not sure such a level of optimism is warranted.
George S| 6.24.11 @ 10:59AM
At first, I thought this is just sheer incompetence or blind ideology on Obama's part to stubbornly refuse to lift the drilling moratorium. Then it hit me: it's the narcissism. From his speech on Afghanistan, refusing to listen to his generals and instead will do things his way, to telling BP to "drill TWO holes" instead of the one proposed by the engineers, to the story I read where Obama, sitting in meetings, would take an idea by someone and immediately repeat it as his own, it is obvious that his narcissism precludes him from doing the right thing. Worst, he cannot bear being second with an idea -- he has to stem from his brain or nothing. Lifting the moratorium is not, to Obama, flip-flopping but implementing someone else's idea.
That's why debating, analyzing, or commenting on Obama's action is an exercise in futility. November 2012 cannot come soon enough.
drgene| 6.24.11 @ 11:59AM
Isn't this for STRATEGIC=MILITARY purposes? A reserve dedicated to MILITARY needs?
Of course, EVERYTHING OBAMA, and his subordinates DO or SAY from June 1,2011 -Nov 1,2012 is RE-ELECTION Propaganda. That includes this Waste of 30,000,000 borrels of oil intended for our US Military!
Oldefarte| 6.24.11 @ 12:03PM
Ross, great and informative article, as usual. As you said, this action simply clarifies that THE EMPEROR IS SHEDDING HIS CLOTHES. My take is that he is all about [and has been instrumental in instigating its beginning] this middle eastern uprising within these Arab countries. As with Iran previously, once their individual dictatorial governments fall, the the most organized Muslim Brotherhoods take over politically, and we end up with numerous Irans instead of just one. Our current oil price/supply situation has been evolving over my lifetime, with Democrats and their bedmates environmentalists facilitating through governmental elections/regulations the demise of our domestic/all oil producing companies, and correspondingly our ever-increasing dependency upon middle eastern and Russian oil sources. Throw in the fact of this president's actionable taking political advantage of the Gulf oil spill to establish an oil moratorium initially, and thereafter non-issuance of drilling permits, combined with this idiotic releasing of oil from the strategic reserve, and you now have less and less domestic oil supply available not only for a normal but also for a catastrophic situation. Is this all INTENDED TO OCCUR TO OUR DETRIMENT [in my opinion yes]??????????
Ross Kaminsky | 6.24.11 @ 12:10PM
Olde,
It's very easy, especially with some understanding of Alinskyite strategy, to think that Obama really does want bad things to happen to America so soften us up for socialism.
But I don't quite go that far with Obama. I think he doesn't like, understand, appreciate, or respect America. But I don't think he overtly wishes it harm. It's just that the things he thinks are good and true are bad and wrong. His ideology is inherently destructive, borderline evil, but I really think he doesn't recognize that.
I could be wrong!
Oldefarte| 6.24.11 @ 3:34PM
Hopefully, I'm wrong and you're right; but there are simply too many questions about him that go unanswered to this day. Great article again!!!!
freedomRings| 6.24.11 @ 5:52PM
I don't know. Incompetency is much harder to combat than outright evil. One keeps giving the incompetent the "benefit of the doubt" and deals more patiently with such. An outright evil person engaged in evil acts, we get more aggressive and put a stop to them sooner.
I'm concerned people continue to see BO as a hopeless boob rather than as a deliberative and destructive ideologue (my personal belief) and end up giving the guy 4 more years - which I believe would put us all into very deep "doo-doo".
George True| 6.24.11 @ 12:18PM
The amount of oil to be released from the strategic reserve (30 million barrels) amounts to literally a day and a half's worth of U.S. consumption. If it were a part of other actions, such as opening up ANWAR, streamlining and fast tracking the process of drilling on federal leases, and re-opening and fast tracking Gulf drilling, then it would be symbolically meaningful as a defacto change in policy.
But the fact that none of these other actions are taking place or are being contemplated means that it is a meaningless action. As such, there can only be a few possible reasons for doing it. One, to appear, at least to the more gullible among the electorate (ie-those who voted for Obama the last time) to be doing something while not actually altering policy at all. Two, as JP and Michael Hauschild have suggested, to have a few campaign contributors positioned to take advantage of the short term dip in prices. Another possible rationale, as Red mentioned, is to claim credit for the already softening price of oil.
It may very well be a combination of all three. But as is always the case with this administration, this action is a purely political calculation. Whether it would be good for America or her citizens is simply not a factor in their decision making process.
George True| 6.24.11 @ 12:18PM
The amount of oil to be released from the strategic reserve (30 million barrels) amounts to literally a day and a half's worth of U.S. consumption. If it were a part of other actions, such as opening up ANWAR, streamlining and fast tracking the process of drilling on federal leases, and re-opening and fast tracking Gulf drilling, then it would be symbolically meaningful as a defacto change in policy.
But the fact that none of these other actions are taking place or are being contemplated means that it is a meaningless action. As such, there can only be a few possible reasons for doing it. One, to appear, at least to the more gullible among the electorate (ie-those who voted for Obama the last time) to be doing something while not actually altering policy at all. Two, as JP and Michael Hauschild have suggested, to have a few campaign contributors positioned to take advantage of the short term dip in prices. Another possible rationale, as Red mentioned, is to claim credit for the already softening price of oil.
It may very well be a combination of all three. But as is always the case with this administration, this action is a purely political calculation. Whether it would be good for America or her citizens is simply not a factor in their decision making process.
Steve A| 6.24.11 @ 12:27PM
Obama is nothing more than a product of his environment. Look at his life & influences, how he was raised, how he was educated, who his friends are & his "work" experience. He sincerely believes that "spreading the wealth" is good for everyone. He is shocked & frustrated that his policies have not produced the intended effect. He, naturally, looks for someone to blame hence the target on "businesses" holding back capital & intentionally not hiring. He could never admit he has been misguided his entire life. His ego would shatter.He is not an evil man. This is not intentional. He is a misguided man.
As for the oil reserve move, it is right in step with cash for clunkers. It is a band aid on a shark bite. The bleeding will stop for about a month or so & just march right along.
freedomRings| 6.24.11 @ 5:59PM
I like that - "A band aid on a shark bite." Good one.
But I disagree with you that Obama is simply a misguided man. He is much too intelligent for that. He knows exactly what he is doing.
The rest of us, in analyzing actions that make no sense to us, essentially put what would be OUR reasons for doing such a thing at such a time - as in this particular instance with the release of reserve oil.
But Obama's reasons, whatever the particular logic behind them, are always political. So, he is not "misguided".
He may be "misdirected" (in our opinions) due to his upbringing and life experience, but he knows exactly what his goals are and does what he needs to do to reach them.
ABNCP| 6.24.11 @ 12:29PM
Gee whiz, put more oil on the market and the price goes down. I guess that means if we start drilling for more oil everywhere and seriously the price would also continue to go down. Oh that's right if we do that Obama and the progressive agenda of his administration would lose some steam and Soros would have to smack his little bottom.
martin j smith| 6.24.11 @ 12:54PM
This once again one of many issues that Obama should be attacked for his policies on failure to use our own resources . But this is only one of many failure on his part. Any Republican Party member who is unwilling to attack Obama directly about his policies should not be nominated. If Repubs do not nominate a fighter
the I will give entirely on that party and support ONLY the TEA PARTY They will be worthless.
Doctor Right| 6.24.11 @ 1:18PM
Frankly, this is a disgrace.
The Strategic Oil Reserves are EXACTLY that : STRATEGIC.
They're meant to keep us in oil in times of emergency, like war or a national disaster.
They're not an "Economic" reserve.
Obama's decision was meant to lower the cost of gas before the election. It endangers us all.
He needs to be removed from office.
Handy| 6.24.11 @ 1:51PM
The DJIA is on its way to $10,000. Oil will be under $80 per barrel pretty soon. Pump price will be under $3.00/gallon by autumn.
The world is shutting down. People are running out of resources and cannot afford to live, let alone invest. In a few years horses and bicycles will outnumber automobiles. As noted earlier by someone who has been there, Japan is leading the way back to a New Dark Age.
The future is grim, because socialism is rampant everywhere. It may be a few centuries before capitalism makes a comeback. But, stocks and gasoline will be cheap.
irish19| 6.24.11 @ 2:23PM
Not sure about the running out of resources part. I think this is more akin to a coma. The disease of socialism needs to be squeezed out before things can come back.
Oldefarte| 6.25.11 @ 2:24PM
THERE YOU GO AGAIN, with that 'Dark Age' pessimism excrement!!!!!!!!
MTB| 6.24.11 @ 2:08PM
"See, I lowered your gas prices."
Big deal. In Feb 2009, after he took office, national average for regular gas was $1.96, as of June 20, 2011, AFTER the great one lowered gas prices: $3.65. Diesel was $2.19 in Feb 2009 and on June 20th was $3.95. He's made things worse, not better.
WhiteBikerTrash| 6.24.11 @ 2:38PM
Reformulated Gasoline Blendstock for Oxygen Blending RBOB
Bill S| 6.24.11 @ 3:31PM
I don't think it was a move of desperation at all. I think he wanted to do the withdrawal from the oil reserve at a time when it would do the least good.
gary siebel| 6.24.11 @ 3:39PM
LOL
well, you obviously haven't got a clue. You are as bad as the liberals bashing Bush for just being Bush.
So far, my predictions posted here are panning out better than yours. I pointed out how Obama's use of our awesome military firepower was impressive -- two days later they got OBL. I said he would open the strategic oil reserve -- bingo (you, however, think we should support Exxon endlessly -- a winning argument with the public, I'm sure; perhaps you should recommend it for the Republican platform). I said he might declare victory in Afghanistan and get out -- looks likely now.
I also predicted Romney would be the Repub candidate -- care to bet me?
Truth to Power| 6.24.11 @ 7:27PM
Gary, I have an idea for you serving a useful function. It is analogous to a canary in a coal mine. When you have an idea, you let us know. We'll use that as proof that it is most likely a stupid idea, one that our moron and chief will likely share. You don't smell so good. You got the smell of really stupid. Back to acting school, clown.
William| 6.24.11 @ 4:24PM
Is Obama's draw down on the strategic reserves consistent with the law under which the reserve was established? Or is this another example of the law professor evading or ignoring the law?
jackc| 6.24.11 @ 4:34PM
Obama and his egomaniacs - Geithner and others - quibble in interpretations of economic data, continue to spend people's money wildly, while imposing austerity on people, blaming the weather, blaming business, blaming citizens, blaming geo-political situations around the planet, blaming anything that justifies their views.
Leadership and accountability have been sold for 'power', 'political correctness', 'control' and 'titles'
gmonsen| 6.24.11 @ 5:23PM
Ross... If Obama were any smarter, I would have suspected he was personally shorting oil. Nice trick that would have been. If it had been Clinton, I would have thought hard on this.
frank harling| 6.24.11 @ 6:45PM
RBOB = reformulated blend. half right can i get a visor
Frumious| 6.24.11 @ 9:57PM
What Obama did was take a shot across the bow of oil futures speculators. His message: "Any time futures prices get too high, I can shoot them down and cause you to lose money. So don't speculate in oil." It will be interesting to see if it will work.
Hugh Manatee| 6.24.11 @ 9:59PM
Agreed. A very major mistake by Team Obama.
Any economic benefit that might obtain from the release from the SPR was almost instantly wiped out by the almost immediate collapse in stock prices.
This was a true"jump the shark" moment for the Obama economic team: They instantly destroyed what little credibility they had left.
One can almost see Obama's economic minions sitting around the White House, scratching their heads, wondering just what the problem might be with theAmerican economy - each of them quite clueless and never dreaming that they're the problem.
You mean, you can't actually borrow your way to prosperity? Huh? And, do you mean to imply that you can't money print your way to prosperity? Please. You must be a racist homophobe.
It's like this: If I sell one of my assets for cash, I have more cash. And one less asset. That was the taxpayers' SPR/oil asset that they sold for cash. The debit to the SPR/oil account is exactly balanced by the credit to the cash account.
Since all the money printing plus the massive deficits have thus far utterly failed to "stimulate" the economy, exactly why would anyone imagine that this additional increment to spending might make any difference whatsoever?
This move positively screams desperation.
Nite| 6.24.11 @ 10:11PM
Obama and his clowns don't know what they are doing period! Their constant idiotic moves makes them the laughingstock of the world. Hope he and his minions are kicked out at next years election.
PerryM| 6.24.11 @ 11:26PM
Obama is a total disaster as our fearless leader - as a Teleprompter reader he's just fine.
What did folks expect when they voted Obama as our President? He has no experience except as someone who got where is with affirmative action. Name a job he held, or a company he ran, or a platoon he commanded?
Obama is an empty suit and everyday folks see this skinny little man demonstrate what a buffoon he is too......
Ellen K| 6.25.11 @ 12:47AM
Let me see if I get this right. We aren't supposed to drill oil domestically. In fact despite the discovery of a huge pool of oil in the western Gulf off of the Louisiana-Texas coast, we are supposed to just sit on it. We can't drill in ANWR, can't reopen west Texas oil fields and at every corner of energy production the EPA haunts like a bad horror movie. But then, in the face of money being thrown at "environmental" efforts at every turn, Obama suddenly has a moral epiphany and realizes that the price of oil IMPACTS THE ECONOMY. Really???? Who knew!!!! Answer-Everybody. The price of manufacturing, transporting and marketing goods and services cost more when you add higher energy costs or taxes into the mix. And who pays those higher prices? CONSUMERS....the very people who are supposed to spend more to help "create green jobs." For the smartest guy in the room, Obama doesn't impress me much. I knew that stuff when I was in elementary school. But of course my elementary school was in Texas, not Indonesia so maybe they have different lessons there.
jmontesque| 6.25.11 @ 3:33AM
Know what's the most messed up thing about this? Now Saudi Arabia and Brazil are getting into the nuclear business. They just wanted to make sure that all the western powers were OUT of it!
Questionman| 6.25.11 @ 3:41AM
Idiots . Bush did the same thing after Katrina . Every president is a politician you clowns . Bush raised the terrorism alert levels before elections in 2002 2004 and 2006 for political reasons . In 2008 gas prices were much higher than this and he did nothing, as inexactly nothing .
Bush wrecked the entire economy and left us this mess Obama is tasked with cleaning up . The markets crashed in October 2008 before the eclection. The TARP bailout was BUsh's plan congress approved it and Obama ran it . Every dime has been repaid with interest too .
You are all right wing fox news trained jerks . Bush crapped all over us cutting taxes for the rich and starting two wars he couldn't pay for while he borrowed 4.7 trillion dollars and added billions a year to medicare with his prescrition drug benefits . Bush sat on his wallet when 9/11 happened on his watch . Bush promise had 95 % approval ratings hwen he promised every single one of us he would avemge 9/11 and get Osama Bin Laden .
Now you idiots call Obama a politician for killing Osama Bin laden , bringing 33,000 troops home from Bush's war and for releasing oil from the reserve . You are all idiots and deserve what's coming when the republicans in congress allow default on the debt in august .
Want lower gas prices ? Call Mr Boehner , Congress handles legislation not the White House you bone heads and hold your breath until a republican congress interferes with Wall Street and speculators and BiG Oil . Hold your breath for that you idiots.
Questionman| 6.25.11 @ 3:53AM
Another thing! This is another invalid argurement to pander the racists (Tim) and the bigots (Gary) on the right. They both don't even bother their hatred for a black man in office, or their very weak argurement that it's about his policies! It's confirmed that it's NEVER been about his policies, even when most of them you supported under Bush, Clinton, or Reagan! The racism here is so obvious, to deny it is the REAL act of desperatation, not this!
I'm not attacking the author, just his racist/bigoted readers. But he might not be different from his ignorant readers.
Just because Obama doesn't follow your idiotic ideology of closet racist conservatism, that means he hates this country? No! You just hate having a black man as president! Obama has done things it was okay for Bush, Clinton, and Reagan to do, but when he does it, he hates America? This is either a case of failed ideology or closet racism. One of those two!
Handy| 6.25.11 @ 8:44AM
You are a black bastard.
Handy| 6.25.11 @ 8:54AM
Have you ever met your "Baby Daddy?"
Racist!!!
beebop| 6.25.11 @ 11:27AM
You know? I am happy that there are people like you who are so sure they know our thinking without refuting any of the argument. Please remind me of when money was handed over to labor by any other resident .... I'll wait here patiently. People like you are doomed to repeat the patterns that have not yielded one ounce of improvement and look every where but in the mirror to find the source of their difficulties. As long as there are people like you with limited intellectual prowess there will be people like 0bama who take advantage of you. Please remind me of when unemployment in the black community was 16%+ other than at present .... and not one word of complaint. How are those democrats treating you?
Oldefarte| 6.25.11 @ 2:38PM
Why don't you stop your imbecilic ranting of charges of racism, disenfranchisement, discrimination, etc; and thereafter try educating yourself concerning the proper usage of grammatical English???????
Truth to Power| 6.25.11 @ 6:25PM
Obama's dad was just an irresponsible idiot. Knock them up and move on was how he lived his life. His mother was that disgusting liberal idiot who drags her kid around in all kinds of dangerous situations because she can't make distinctions when it comes to brown people. His grandparents, especially his grandmother were the ones that raised him. Remember her, the typical white person. Unfortunately for them all, they were part of the race obsessed Democratic Party. Questiongirl knows what that is all about. Whatever she is, she is race obsessed. The left still tries to insulate Obama from criticism by using the cheesy charge of racism. Apparently Clinton, both Bush Presidents, Reagan, right back to Washington were never criticized. Questiongirl, you are a big joke. As is usual for Democrats you try to project your racist attitudes on others.
Skippy| 6.25.11 @ 7:31PM
I am always proud to be called a racist by Obamazombies.
It is a badge of honor, considering the source.
Frank| 6.25.11 @ 10:50PM
Questionman sez:
"Bush wrecked the entire economy and left us this mess Obama is tasked with cleaning up . and, Want lower gas prices ? Call Mr Boehner , Congress handles legislation not the White House you bone heads..."
My friend, you cannot have it both ways. You cannot ascribe the wrecking of the economy to a Republican President, whom you dislike, and then chalk up the failure to fix the economy to a Republican House of Representatives.
If your logic were to hold, and GWB "wrecked" the economy, then it follows that the present occupant of the White House has the power to "fix" the economy, or at least, not make it worse.
People on this website and elsewhere make comments that imply the President has the power to fix the economy and then they criticize him for not doing so. I think this is intellectually dishonest. I think the President has the power to do great harm by making the wrong moves, and I think this President has done that over and over.
The economy can only be "encouraged" by policy moves, it cannot be "fixed." Encouragement is NOT a piddly release of oil from the petroleum reserves. Encouragement would have been either NOT putting the drilling moratorium in the Gulf, or lifting it at the earliest opportunity.
Encouragement is NOT allowing the National Labor Relations Board to sue Boeing because they want to build the Dreamliner 787 in South Carolina, a right-to-work state. I could go on.
Would you like to know what wrecked the economy? The loans that were made to people who had no business borrowing the amount of money they borrowed. Easy money policies and the notion that everyone should own a home (or three) fueled this party. The policies that led to this go way back before GWB. Once these mortagages were securitized and sold, and these debt obligations were then insured, and resold, etc. it became a house of cards.
This thing got bigger than any President (from either party) could do anything about. Congress did not have a clue and some in Congress, particularly Barney Frank and Chris Dodd, did not WANT to have a clue.
You really should educate yourself on this topic. So that the next time you feel the urge to tell people what wrecked the economy, you will actually know. But you won't do that, will you? It is much easier and more fun to simply blame it on one person rather than applying any critical thinking.
TGrade1| 6.25.11 @ 7:30AM
I think we need a new voice. www.gradyforpresident.com. He is a regular guy and his ideas are based on logic and common sense. Best of all, he's not in anyone's pocket.
Chef Schnauzer| 6.25.11 @ 8:34AM
Nixon, Ford, Carter, Reagan, Bush, Frat Boy, Frat Boy II, and now Cleric Obama - have forced our economies to dance to the tune of these vulgar, smelly little Arabs. How many gold plated toilets does one really need? Another force is making our increasingly incorporeal 'leaders' down this road. At some point (I pray soon) Joe Six-Pack is going to have to roll up his sleeves (again) and out do the whole Jesus / money-changers scene with Washington, and the state capitols as well. I favor the way the Roman decorated the Appian Way after one of the later slave revolts. Here government union parasite, you don't want to set the nation on a healthy course, you don't want to contribute to your own health costs and pension? Not a problem - this is one length of rope I'll gladly pick up the tab for, you scum.
Clive | 6.25.11 @ 4:41PM
"... the most economically incompetent president since FDR."
- No, that isn't Obama. Either Reagan or either of the Bush presidents would be the title holders for that.
Skippy| 6.25.11 @ 7:33PM
I agree.
Thank God those dark days of 4.2% unemployment are over.
Purpleguy| 6.26.11 @ 5:20PM
They - Reagan and Bushies - put us on the road we're on ... if you want the Banksters and Wall Street Barons to be in charge, vote Republican. Deregulation, deficit spending, militarism - all started with Reagan and continued by Bush I and Bush II, Clinton reversed it some, and Obama has reversed it some, but it will take a while to fix their damage.
The One Who Runs Like a Duck| 6.26.11 @ 6:19PM
After we destroy the country we will do some good old fashioned nation building, purplegay. You forgot to list my objectives for fixing this problem. We are going to force people to drive the Chevy Volt, put wind farms in their backyards, burn Brazilian oil, and give all my Democrat contributors kick-backs. This how we roll when we are not on the golf course, baby. High speed rail to the 18th green. Are you and the boyfiend headed for Weiner land?
Purpleguy| 6.27.11 @ 4:16PM
And your point is?
Richard Cancemi| 6.25.11 @ 11:03PM
I have always believed that Obama has had one major goal which is to destroy this Country by whatever means and at whatever cost. He is a Marxist and is on record saying he wants to "fundamentally change" the USA.
Depleting the oil reserves is another form of depletion of our wealth and independence. This man and all in the Progressive camp do not want to save America, regardless of the lies and bullshit they hand out daily. They are continually undermining all that is America and American. They are in every institution, especially the media and in schools, sowing their evil propaganda. The sooner people wake up to this traitorous President the sooner we can start restoring America. Obama is a "bad and dangerous man" and that's putting it mildly!
If he and the Progressives are not defeated, we can kiss the USA good-bye!
Purpleguy| 6.26.11 @ 5:22PM
Hmmm, let's see - there's over 700 million barrels of oil in the Strategic Petroleum reserve and Obama released 30 million barrels. Yep that's depleting the oil reserve - kinda sounds like fuzzy math, don't it?
POST American| 6.26.11 @ 1:43AM
Routine 'distress' as the capstone-EUGENICS
and RED China sellout agendas (awe-stare-IT-he) are further advancced.
JP| 6.26.11 @ 11:02AM
The SPR is a joke. It is a political relic from the past. The SPR contains less than a week of oil at current consumption rates. For a few decades it serves as nothing more than political fodder for Presidents who wish to perform drama at the expense of action.
In June the American Astronomical Union published thier annual report predicting the Sun is at the very beginning of a long minimum (at least 35 years). Solar Cycle 24, which should currently be spiking remains lackluster. Using 5 major parameters of solar irradiance, the AAU bascially said the Sun will gone on strike until the middle of this century.
What this means is that less incoming solar radiation will be hitting the earth. The decrease is actually quite small. But this decrease will allow more cosmic dust to enter out atmosphere (when the sun is more active, its rays prevent this cosmic dust from entering our atmosphere). Ths increased cosmic dust will fall into our atmosphere and act as condensation nuculei. This extra material will lead to more cloud cover. In the Equatorial regions of the world, this increased cloud cover leads to less sunlight hitting the oceans. When this occurs, the cooling ocean temps lead to more La Ninas, less warmth making it to the polar regions, and hence more artic outbreaks during the winters, cooler summers and cooler springs.
In short, our demand for oil in the winter will be increasing. But as Texas has shown last winter, we do not have the means to produce extra energy during peak demand.
Get a wood burning stove, oi coal furnace, or fireplace. Buy coal and wood. Our government is creating hardship and they don't even know it.
Purpleguy| 6.26.11 @ 5:24PM
As usual, facts don't matter in right-wing lala land. See the truth: http://www.fe.doe.gov/programs/reserves/index.html
Purpleguy| 6.26.11 @ 5:17PM
"More likely is that the Obama Administration is sinking into desperation as its economic policies lengthen and deepen the economic downturn -- just as similar (and one would have therefore thought discredited) policies in the 1930s were substantially responsible for turning a serious recession into the Great Depression." - Unbelievable - have you ever even considered that the Great Depression and the Great Recession of 2008 were so long and deep because they were so much worse than all the other recessions they are compared to? Come on, you can't seriously believe this is a desperate move by President Obama when more than 20 countries (27 to be exact) are also doing the same thing? Why are they? To help President Obama? If you believe that, I have a bridge for sale.... Geesh, think people.
The One Who Runs Like a Duck| 6.26.11 @ 8:32PM
Thanks for getting my back, Purplegay. It brings back memories of the gay nanny. You would think that the mere mention of the Chevy Volt would calm Americans. I am going to do to America what your boyfiend does to you. Brazilian oil charges my golf cart, baby. Off to Weiner land where there are never ending wind farms.
Purpleguy| 6.27.11 @ 4:19PM
Are you insane? No defense, just babble, and you think you're being snarky, let alone intelligent? Seriously, this isn't a kindergarten name-calling exercise....
Quacks Like One Too| 6.27.11 @ 12:07PM
Long and deep (easy now, stay on topic degenerate) recessions, you mean like the one during the late 1970s where Barruh Earlssein Carter graced the nation with interest rates around 20%, inflation around 15%, and unemployment around 10%?
A genius such as yourself should have no trouble researching where the recovery was at two and a half years into Reagan's term.
Hard to believe you never get weary of being such a monumentally stupid liar.
Purpleguy| 6.27.11 @ 4:23PM
Uh, did you miss the part where ALL economists have said this was the worst recession (therefore the Great Recession) since the Great Depression? I didn't coin the phrase, they did. That includes (now count with me) all recessions since the 1930's ... that's all decades including 1940, 1950, 1960, 1970, 1980, 1990, 2000. Now do you get it?
Now, really, the name calling is childish and boring just puts you in the category of a Glenn Beck where facts are immaterial only how you feel matters.
Quacks Like One Too| 6.27.11 @ 8:36PM
Calling you a stupid liar is an accurate description of what you are. You can't simply disregard being called a stupid liar as name calling because being called a stupid liar is an unpleasant description you don't want to acknowledge is true because of the stupid lies you the stupid liar always state. If you weren't such a stupid liar you would have already known this, but then again you wouldn't state such a stupid lie as 'ALL' economists if you weren't a stupid liar. Don't state stupid lies if you don't want to be called a stupid liar, you stupid liar.
zooboy| 6.26.11 @ 11:11PM
Maybe Soros was short some oil futures, and this was a quid-pro-quo for some extra campaign help from MoveOn, etc. Within the realm of possibility.
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The Utopia Factory | 6.27.11 @ 12:59AM
This is all a distraction from the Chinese building 50 square mile "economic zones" all over the US !!!
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Ron| 7.3.11 @ 1:44PM
Obama is a loser.
When the strategic oil supplies are gone, watch the price of gas then.
Obama is a loser grasping at straws. He is a loser.
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