by Chris Black
As the Congressjew Steve Cohen said: when you’re paying $15 a gallon for gas, just think “I’m sticking it to Putin.”
Believing a Democrat can solve a problem is like believing the pimple faced dork will actually bang the prom queen.
Those things only happen in movies.
He also said that this is some kind of Great Reset global warming thing and you have to buy an electric car.
So, oil reached historic highs on Tuesday, and Biden’s embargo on Russian oil will most probably make the crisis worse, a crisis he himself has created by refusing to ramp up domestic oil production.
When gas is $15 a gallon, and grocery bills double or triple, which looks to be where we’re headed, a lot of normal people are going to start asking why exactly it is that they should be standing with the Ukraine.
Moral signalling is a privilege of the privileged and decadent. People with real problems do not have the luxury of going around telling everyone about how moral they are.
Contrary to media narrative, gas prices were on the rise well before the invasion of Ukraine. pic.twitter.com/OE9EuZ7JgT
— Jorge Bonilla (@BonillaJL) March 8, 2022
.@JacquiHeinrich: “As long as we're buying Russian oil aren't we funding the war?”
Psaki: Russian oil is “only 10% of what we're importing”
(We import 400,000-900,000 barrels of oil and oil products from Russia every single DAY) pic.twitter.com/Xwm3ocoWdx
— Lyndsey Fifield (@lyndseyfifield) March 3, 2022
Remember when Trump claimed that gas would go to $7.50 under Biden? That is starting to look like a low ball estimate.
Who knows, maybe this oil/commodity price skyrocketing thing is just a manufactured crisis to mask hyperinflation, but I’m reaching.
The truth is, the Untied States became a net exporter of oil in 2016, which means there is more than enough supply in the USA to make up for what comes in from Russia. The USA supply could also settle at $40 a barrel and leave plenty of profit for everyone.
The problem is Wall Street wants to be able to sell contracts at a higher price, and exporting oil allows that.
If you shift 4 million barrels from Europe and the US to China, and China reduces the consumption from Saudi Arabia and the US by 4 million barrels, you don’t have a supply problem.
The issue for Goldman is that if China bypasses the petrodollar, the petrodollar dies. Which is the only thing keeping a paper oil contract at $135. The price of oil then plummets to the actual demand based value for the commodity, which is somewhere around $25.
It doesn’t cost $130 to pull oil out of the ground anywhere on Earth. But it makes commodity traders incredibly rich when they bought contracts for $65 a few weeks ago.
Remember: this isn’t just about gas. Energy prices increase the cost of everything. And it’s going to be significant.
And here is Russia’s response:
The idiots in the media and the politicians have no idea what suffering this is going to cause ordinary English people. "PUTIN DECIDES TO BAN THE EXPORT OF PRODUCTS AND RAW MATERIALS OUTSIDE THE RUSSIAN FEDERATION UNTIL DECEMBER 31!"
— Humphrey Cavendish (@HumphreyCavend2) March 8, 2022