Thursday, September 13, 2012
The reality of gas and energy prices
The further we get into the campaign, the more disappointed I am in Romney. Rather than trying to capture the political center, he seems to be more interested in placating the Tea Party. The Obama campaign plays the race and class and other cards and draws the party further to the Left. He has alienated many Jewish voters who usually vote Democratic. Many American and Israel leaders and journalists label Obama the most anti-Israel Pres.ever. Like most politicians both mouth too many platitudes and oversimplifies complex issues. An example is Mitt's comments on high gas prices. For a rich guy, he doesn't seem to understand much about economics and energy markets. This article explains the economic reality of gas prices. If you want to understand the economic and political reality of the international energy situation, I strongly recommend Daniel Yergin's book "The Quest." In a the highly competitive and unstable international market, we are largely at the mercy of many others and national events. Yes, we can increase domestic production but that is only a partial answer. Further, even if we increase domestic production, what if the Chinese and Indians offer to pay more? Will we pass a law outlawing domestic export of oil? I don't think we want to start down that road with all the potential reprisals.