Oil in America. Why do Democrats hate it?
So I have seen it all over the news lately. It has been on the television, it has been in the newspaper, and it has been all over the internet. Gas prices are rising.
But the main stream media outlets are not reporting why gas prices are rising.
I would like to give you a very brief explanation of basic macro economics, and tell you why gas prices are rising.
In a macroeconomic world, everything that the President of the United States does, affects the world economy. For example, if the President, Congress, and Senate spend money that they do not have, and force the mint to print money at an excessive rate, the theory of supply and demand kicks into play.
This theory states that when demand is high for a product (like money) and supply is low, prices remain high. But when demand is high and there is unlimited supply (like printing money for no reason), prices are driven very low because there is no actual value to a product that has a theoretical limitless supply.
Imagine if the most popular toy at Christmas time 2009 in America had an unlimited supply, what would you pay for it? You would not pay premium prices that you see on eBay for high demand toys, you would pay standard retail price (probably a lot less).
Why would you pay high dollar for toy everyone has the potential to get?
When the United States continues to print paper money that is backed by nothing, the dollar’s value continues to fall on the world market.
Therefore, when the monopolies of people that own the oil in the world see that the US dollar is diving in value they will demand a higher price before they sell their oil. Because that US dollar that they get for their oil is continuing to buy them less and less.
They currently have a monopoly, they can demand whatever price they want, and the US has to pay it because the Democrats will not allow us to utilize our vast natural resources to produce our own oil.
This is why the left wing Democrats are killing America currently. Democrats are stopping America from being able to harness their own oil reserves because they think that oil is bad.
If the environmental wacko Democrats in the US would actually start caring about the US being oil independent, we would be able to survive for hundreds of years without OPEC controlling us.
Owning oil does not need to be political, but the Democrats want to make it political so they can control voters.
Sample stories to back my theory:
http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches.aspx?post=1326485&_blg=1,1326485
