Tuesday, March 08, 2011

Palin can see $ 5.00 a gallon gasoline all the way from Iowa.

The people who suffer from "SPODS" aka Sarah Palin Obsession Disorder Syndrome may become a little bit more deranged after what I am about to say. I remember back in 2008, when oil was over $4.50 a barrel and gasoline prices were well over $4.00 a gallon for regular. Sarah Palin said three words that sent liberals running around in circles like a dog chasing it's tail.



Those words were "drill baby drill". When stupidity mocks common sense, one has to stand back for a moment and scratch his or her heads in bewilderment. What Palin said on the campaign trail made absolute sense. The average person doesn't need to have a college degree in economics in order to understand the ultra simplistic equation of "supply and demand". Palin like most people with common sense knew back in 08 that if the supply of oil on the market was increased higher then the demand for it, PRICES WOULD DROP and vice versa. Well they dismissed what she said then, but now they might have a problem. The perfect storm that ushered Obama into the White House may be forming to do the same for her in 2012 via Iowa in February of 2012 and high gasoline prices. I read an intriguing story by Scott Conroy over at Real Clear Politics yesterday. The title of the story is "Could $5 Per Gallon Gas be what Palin needs". Scott's main theme is that out of all the potential 2012 GOP candidates, she is the the best potential candidate to benefit from the high gas prices and most qualified to speak about the solutions on energy price stability and policy . Romney, Cain and Trump all are successful private sector business people, but energy isn't their expertise. If oil prices continue to be rise at nose bleed, wallet draining levels going into January of 2012 one month before the February 6th Iowa Caucus, I don't see how Palin could be stopped from that point forward. I'm sure the other candidates will echo similar sentiments, but Palin would have more credibility, because she was making the claim for domestic drilling ever since she came onto the national. There is a statement from Obama back in 2008 in which he said that he was alright with gasoline being at $ 4.00, he just had a problem with how fast it got there. If a candidate Palin was to ever ask Obama what did he mean, when he made that statement, Obama would be finished. Also, media tabloid attacks against Palin would have little impact on her with five dollar gasoline then it would if it was at or below $ 3.00. At five dollars a gallon, people are more concerned about who can give them relief, that's it. I did a internet search just for kicks, and I used the keywords, oil prices and sarah palin, and I cam across similar stories like the one Scott Conroy wrote about how high gas prices potentially benefiting Palin. Obama is now talking about releasing some oil from the Strategic Oil Reserves. Palin has come out and said that it wouldn't work in bringing down the prices, and she is right. Contrast what Palin's position on energy exploration to increase supply to bring down gas prices versus Obama's idea of "inflating your tires and getting tune ups"?



Palin versus Obama on the issue of energy, who sounds like they have the best solution?

8 Comments:

Blogger JD Curtis said...

Is it just me or is the level of derision aimed at Palin well beyond the irrational level?

I mean, I think she's OK. I like Romney a bit more personally but the sheer amount of metaphorical feces hurled in the direction of this woman by the Left approaches that of screechy monkey status.

8:42 PM  
Blogger p. anthony allen said...

You're using the economic advise of a pea brain like Sarah Palin??? Now I've heard it all...

The market for oil doesn't quite follow the typical supply and demand model, because in the short-term both demand and supply are highly inelastic. Simply put, you can just readily switch from gasoline to solar, battery or hydrogen if choose not to buy gasoline.

For one, the imbalance between supply and demand that keeps pushing gasoline prices higher. It's one of the main reasons gasoline now costs more than $4 per gallon. Another reason is the large trader banks and hedge funds fueling speculation. Domestic oil production has no effect on world oil prices nor the price we pay at the pump. According to The U.S. Energy Information Association U.S. oil production "rose" in 2009 and 2010 which has shown not to have any effect on lowering the price of gasoline.

Even after the domestic spill in the Gulf of Mexico, gas prices were fairly steady from April, May, June, July, and August.

Such ideas and knowledge of the oil market would never come out of the dim-witted mouth or brain of a Sarah Palin.

And don't even try to pass off the idea that Palin was the Governor (before she quit to get rich) of an "oil producing state." Hell, Jennifer Grandholm was the Michigan governor for 8 years, but I'd say she would be the last person to call on if you needed an auto industry expert.

2:19 AM  
Blogger Alpha Conservative Male said...

JD Curtis "Is it just me or is the level of derision aimed at Palin well beyond the irrational level?"

Ah, yeah lol. It's more like irrational along the lines of insanity, psychotic, delusional, emotional rage, mental instability etc. JD have you ever wondered why the left doesn't react to Romney no where near the way they do Palin?


p allen "You're using the economic advise of a pea brain like Sarah Palin??? Now I've heard it all..."

Let me feed you a cookie allen and pat you on the head, ok now go and sit down and let me explain. Palin didn't create the economic equation of supply and demand, SHE UNDERSTAND IT!! This simple concept existed for as long as anyone can remember, because it is rooted in fact! Using supply and demand sounds a hell of a lot better then listening to some clueless jackass talk about "tire gauges and tune ups" saving people the equivalence of drilling for new supplies of domestic oil to out pace demand. There is no comparison allen who's the "pea brain" between the two.

p allen "
The market for oil doesn't quite follow the typical supply and demand model, because in the short-term both demand and supply are highly inelastic. Simply put, you can just readily switch from gasoline to solar, battery or hydrogen if choose not to buy gasoline. "

As an investor, read and learn allen. The prices of stocks, futures, options, commodities are all based off of supply and demand. Oil is a commodity just like natural gas, propane, gold, silver etc. The reason why natural gas prices have stayed low through a very cold winter is due to the fact that there is a huge surplus of it versus the demand for it. Gold is at a record high, due to the demand for it worldwide versus the actual availability of it. I'll use a non wall street example to clarify what I am saying. When the playstation 2 and 3 came out, Sony like many video game console manufactures restricted the supply in order to build up demand for the consoles. That was why people who were actually able to get the consoles, when they were released were able to sell at system that would normally retail for $299 in the stores for $1500 to $3000 on Ebay. When sony increased production, people on ebay could no long demand their outrageous prices, because people could easily go into the stores and buy them for regular $299 price. The same principal applies to the pricing of super bowl tickets. Come on allen, think.

9:51 AM  
Blogger Alpha Conservative Male said...

p allen "For one, the imbalance between supply and demand that keeps pushing gasoline prices higher. It's one of the main reasons gasoline now costs more than $4 per gallon."

Earth to allen, that imbalance is the imbalance between "supply and demand". Dam, you just proved what Palin and I said genius.

p allen "Another reason is the large trader banks and hedge funds fueling speculation."

Speculation is how the global commodity markets work allen. Did you ever see the movie Trading Places? If you noticed, the prices of light sweet crude oil has pulled back below $100 dollars a barrel, the reason is because speculators heard that Opec will make up the shortage of oil production from Libya. So with that being known, oil speculators are selling off their positions thus lowing the future spot price for oil. It's that freaking simple.

p allen "Domestic oil production has no effect on world oil prices nor the price we pay at the pump."

Whip out that tire gauge and continue to ignore reality allen. You base what you said on what exactly? You got the talking point down, now back it up.

p allen "According to The U.S. Energy Information Association U.S. oil production "rose" in 2009 and 2010 which has shown not to have any effect on lowering the price of gasoline."

This is way to funny to comment on but here it goes. Genius look again at the graph. You'll notice that oil production DECREASED from 2009 to 2010. The production of ETHANOL has increased! The domestic production is even lower for 2011! When Obama placed the moratorium on domestic off shore drilling, that took supply off the market to you know. Thanks for the humor allen.

10:08 AM  
Blogger Sojournerlove said...

I have to laugh at people who hate Sarah Palin.
They have no right to call her or even her supporters stupid.
Obama is making everything worse only a fool would still support Obama.

12:49 PM  
Blogger PrairieStater said...

Gas has steadily increased while we have sat by and done nothing for the brave freedom fighters of Libya.

10:17 PM  
Blogger p. anthony allen said...

CB;"As an investor, read and learn allen. The prices of stocks, futures, options, commodities are all based off of supply and demand. Oil is a commodity just like natural gas, propane, gold, silver etc".

With you as an investor, I now can see why you can't make 250K!

The market for oil doesn't quite follow the typical supply and demand model. Oil Supply, Demand Are Disconnecting From Price Signals, IEA's Birol Says.

After I told you that, "Domestic oil production has no effect on world oil prices nor the price we pay at the pump' you ask;

CB;"You got the talking point down, now back it up".

Very simple. Go to Consumer Reports and look at gasoline prices when U.S. production had "risen" in 2009 and 2010.

CB;"Genius look again at the graph. You'll notice that oil production DECREASED from 2009 to 2010. The production of ETHANOL has increased! The domestic production is even lower for 2011".

Tyrone, read exactly what I wrote. Then look at the graph again. Okay, now think... I said US production "ROSE" in 2009, 2010. The chart shows oil production from 2001 to 2010. Two years show a "rise" in production. Not one of the previous years on the graph shows a "rise" except for 2009, 2010. Make sense?? (2011 hasn't concluded yet, that's why they put the letters "F-O-R-E-C-A-S-T" above that area on the graph)

CB;"You base what you said on what exactly?".

The 2009, 2010 domestic oil production increases that have shown not to have any effect on lowering the price of gasoline. Do you or Palin have any evidence supported by factual data that shows that increases in US domestic oil production lowers the price of gasoline?

Palin knows absolutely nothing about the economics of oil markets. Having Sarah Palin as even a "semi-expert" speaker at a oil market summit or an oil seminar, is like having Jesse Jackson giving the key-note at CPAC!

2:24 AM  
Blogger JD Curtis said...

Are these clowns actually unaware of the Bakken formation or do they just want us to think they are really that stupid?

3:35 PM  

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