If gas prices were on a train right now it would definitely be riding the President’s high speed rail. Steve posted on this in March when gas was around $3. The we told you a week ago that gas prices (then $3.90) were headed in this direction and got no interest from callers. Something tells me gas will soon be center stage. CNBC thinks so … so do others. Obama video below the fold.
CNBC’s report is getting plenty of play, and well it should. While Trump has been grabbing the headlines inside the beltway … oil has been grabbing your bucks, and CNBC explains how the dollar is the root cause and Obama the accomplice,
Weakness in the US currency feeds upward pressure on commodities, which are priced in dollars and thus come at a discount on the foreign markets.
One result has been a surge higher in gasoline prices to nearly $4 a gallon before the summer driving season even starts, a trend that economists say will be aggravated as demand increases and the summer storm season threatens to disrupt oil supplies.
CNBC goes on to explain just how much the weak dollar has added to gas prices:
Using a model that combines “subtle rates of change” with movements in the dollar index [.DXY 74.35 -0.02 (-0.03%) ] and commodity prices, Hastings figures the low dollar is responsible for about one-third, or $1.31, of the total gas-at-the-pump cost. Regular unleaded Wednesday was $3.84 a gallon nationwide, according to AAA.
And then this:
Hastings sees gasoline having “no problem” getting to $6.50 a gallon over the summer after increased demand and storm disruptions come into play.Others, though, say gasoline prices haven’t needed any help so far from other events—the moves by the Fed to keep interest rates in negative real terms are enough to boost energy by themselves.
Not shocked enough. Steve documented the run-up just this year, last month.
It took 24 days, from Feb. 1 to Feb. 24, for the national average for unleaded gasoline to climb from $3.101 to 3.228. The last comparable period of “eye-popping” gas prices: the 20 days between Feb. 21 and March 11, 2008, when the national average climbed from $3.086 to $3.227.
The President today blamed speculators. People hedging the price contribute, no question. They can see the handwriting on the wall and moving quickly to cover. Why? Because there is no sign that either the President will change his attitude on drilling (see SOS post here) or the Fed’s, and the President’s policy of cheap money. The result is $4 a gallon.
Meanwhile the President remains committed to his crazy windmill, solar, energy of the future program even in the face of this budget busting gas price explosion. Here he is today in his Facebook appearance once again pushing alternatives that might someday help
you, your kids, your grand kids.
But if you can’t wait for his windmill car … you can take the advice he gave last week to a father of 10 … just get one of his Government Motors cars, or better yet, use birth control or next time get an abortion … also lefty solutions.
I could go on and on here. High prices don’t bother the”high speed, urban dwelling, limousine left liberal elite”. Once more, just for old time sake. The year is 2008 and Obama is just getting started. Ahh to be a multimillionaire liberal TV anchor.
Oh and one more note to you lefties. Drilling now will indeed take 4 to 10 years to produce, but just the commitment alone will squeeze the speculators out of the market. the rest is up to the President.
UPDATE: The headline has been changed to reflect CNBC as the source for the $6 a gallon story. The original headline had CNBC at the very end of the headline which I thought confusing. My bad.