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Tuesday, June 3, 2008

The Soros "Bubble"

According to George Soros, the price of oil is in bubble mode; that is, much like the over-inflation of home values a few years ago, the price of a barrel of oil is in for a correction soon. We can only hope so! This news puts me in the nefarious position of agreeing with George Soros on an issue, something I've always tried to avoid. Oh well, a stopped clock is right twice a day.

Oil prices cannot stay this high because the price affects demand. In Fort Wayne, Indiana, where I live, scooters and mopeds are selling like hot cakes. SUVs can be seen strewn about the side of the road everywhere with "For Sale" signs on them. People are downsizing their automobiles, which is bound to reduce demand. Therefore, supply will increase, and prices will fall.

This does not negate the need for drilling and exploitation of our own internal resources. Every barrel of oil we buy from the Middle East represents a few dollars making it into the hands of those who want us dead. We want there to be a definitive choice for our enemies: food or bombs.

The Saudi sheiks pay the terrorists to keep them off their backs. This is a well known fact. Certainly none of this is done above board; they pay Islamic "advocacy groups", who in turn pay other groups, who, somewhere down the line, donate money to the bad guys. The same is true of most governments in the Middle East. Most of these people don't wish us any personal harm; we're their best customers, after all. They do it because, if they don't, they will be attacked themselves. Still, the net result is the same. The only way to stop the shell game is to stop buying from other countries.

We have plenty of oil, oil shale, and other resources. I love the algae-ethanol idea. Anything that can and will reduce the price of gasoline is a good idea in my book. We need a multi-tiered approach. The environmentals want a green-only approach. The corporate puppets want an oil-exclusive method. Both approaches must be used simultaneously if we are to fix the problem. We need government funding of the algae-ethanol technology, and drilling in Alaska, off the coasts, and inside the mainland United States, with the provision that none of the oil is exported. We need to double our refining capacity within the next ten years. Oil is the basis of the modern economy, like it or not. We need it to be cheap and plentiful if we are to prosper.

If we began to take the steps toward true and lasting energy independence, the oil bubble would burst. Will we? I can only hope. Unfortunately, I have some real doubts about the chiropractic health of our politicians.

1 comment:

  1. I think you should run for office - we need people like you that will say what needs to be said, even if those in Washington DC don't like it!! Give it some thought!


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