Presbo said he is “going to keep doing everything I can to help you save money on gas, both right now and in the future.”
The problem is that nearly every policy that might be initiated by a President has effects that are felt further down the road (watch out for that can).
Virtually every oil well that is producing oil right now is a well that was leased and permitted prior to 2008. It takes 5-6 years for a permitted well to actually become built and producing oil for the market. That’s not the problem, although the results of Presbo’s policies can certainly drive up prices temporarily as speculators, like his friend George Soros, can jump in and run up the costs playing with futures commodities contracts.
What is driving the price of oil and the cost of a gallon of gas right now is the result of a devalued dollar. The numbers of dollars in circulation spiked tremendously. Twice. Under the leadership of Ben Bernanke, who controls the private company, the Federal Reserve, and who serves at the whim and wishes of Presbo.
Little items called by the unassuming name of QE1 and QE2 (Quantitative Easing 1 and 2) involved pushing huge numbers of newly printed dollars (picture pallets full of $100 bills) into circulation and thereby diluting the purchasing power of the dollar. This eased the cost of paying back creditors of the government, which meant that our government’s credit rating took a hit but not nearly as bad as it could have been. It also meant that our dollars would purchase less. This is the single greatest and nearly the only effect on the cost of gasoline that has been had by this administration.
How much effect? For those with poor memories: it took $1.83 to purchase a gallon of gas on January 2009. Yesterday, the price of regular close to my house was $3.65, essentially double the price. Most of that doubling of cost came from the lost purchasing power of the dollar. NOT from speculators. Since the cost of energy and food are not counted under the way the government has decided to figure inflation, they happily report that there is little inflation. Of course the politicians get to write off most of their gas costs.
So if he was REALLY going to be doing EVERYTHING he could, he’d be raking Bernanke over the coals and making him take those dollars back out of circulation. Except he can’t. Because then it would be even harder to justify continuing the massive spending and our country’s credit rating would be in the toilet, instead of merely hovering over it. So maybe “can’t” isn’t the right word. What about “disinclined”?