Buckle up the Fiscal Cliff is guaranteed. Reply

I’m so proud that Patty Murray, House Democrat, and Maria Cantwell, Senate Democrat, are from Washington state.  Both have made comments this week stating that we would be better off going over the “fiscal cliff.” This kind of thinking is what made this country great.  We should never compromise with the “other” party.  Instead of compromise we should self-inflict credit down-grades, and avoid balancing a budget until we get sufficient leverage over the other party.  Why pay our bills anyway?  We’re America.  People will always buy our debt; where else are they going to go… Japan?  Hell the people who vote our Congress, President, and Senate in will only suffer a little bit from their unwillingness to do the job.  I mean, why solve such an important issue?  They can always go on vacation and push it further out.  It’s not as if, voters pay their salary. Oh wait.  If you can sift through the massive amount of sarcasm, follow me.

Let me be clear, it is NOT the point of this piece of this article to put down Democrats.  These two ladies have been the only law-makers that have made comments implying that it would be beneficial to jump off said cliff.  We all know that both sides are equally stubborn.  If you have ever had a question about where the House and Senate’s loyalties lie, this should make it VERY clear.  Instead of tirelessly working on a Grand Bargain that can lead to avoiding this problem, they are holding strong to their donors’ wishes.  This has nothing to do with voters.  If it did, they would get this solved.  Instead special interests, lobbyists, and large donors have their loyalties.  No one is willing to bend for fear that they will not have the flood of donations after all is said and done.  Bottom line, all they care about is being re-elected.  This fact looms largest: 94% of the time the winner of an election is the candidate that raised the most campaign money.  So in essence they know they will win yours/my vote if they spend enough money on the campaign.  The only way to do so is to keep their campaign donors, lobbyists, and special interests happy.

 

 

Profit, not speculation, driving gas prices! Reply

One year ago Crude oil was $120 per barrel and never broke $3.25 at the pump. Currently, Crude Oil is resting at $102 per barrel and the average price at the pump is over $4.00.  Therefore, since April 2011, oil companies are saving $20 a barrel while gas prices have risen 23%. This equals a profit increase of 40%.  Real demand has been very steady, so we have to assume that prices are merely profit based.

Several Senators and Congressmen and women have come out to attack “rampid speculation.” Senator Bernie Sanders has gained popularity just for his stance against Wall Street on this issue.  Sanders is sponsoring the End Excessive Oil Speculation Now Act.  Now I don’t see any problem with this idea, but they are so far off the point here.  It is like Papa Bear getting mad at Mamma Bear because Goldilocks ate Baby Bear’s breakfast.

Speculation does have a piece of the blame here, but it is minute compared to the almighty profit of big oil companies.  Also, speculation drives the price down just as much as it drives the price up.  The major fault with speculation is that it swings the prices more dramatically than it would otherwise be.  For example, at the end of 2008 we thought the financial world was collapsing.  Because everything in speculation is anticipation, speculators figured that demand would diminish further than it actually had.  This assumption led to the price of oil to fall to $32 a barrel.  In actuality, it had dropped, but only minimally in the grand scheme of things.  Within a year, prices had gotten back to $80 a barrel.  At that price, everyone was pretty happy.  You see, $80 is the breaking point for big oil companies to make money.  They were returning to big profits and we were still under $3.00 per gallon at the pump… a far cry from being over the $4.00 we were seeing in the summer of 2008.

Exxon Mobile, a company I love, makes 17 billion dollars a year before taxes.  Knowing that they are losing money in Natural Gas, where do you think they are getting record profits?