Ready For $4 Gas?

Image (1) stock-photo-gasoline-prices-gas-price-sign-with-a-humorous-slant-1719803.jpg for post 10192

One way to tell Republicans are in office is that the price of gas skyrockets. 

Remember Operation Desert Storm? Zoom! Remember invading Iraq? Zoom! 

It takes a little while to cook up a destabilizing scenario in some world hot spot – usually the Middle East. The current administration started banging the drums of war against Iran the minute it walked in the door. Two National Security Advisors and one tepid Secretary of State later they are getting their war cabinet in place.

One of the first effects of destabilizing the Middle East is that the price of oil jumps over fears of interruptions in the supply. What a lucky break for all those oil companies who have lots and lots of “campaign contributions” into Republican politicians.

Let us not forget that it is also an incredibly lucky break for a certain Russian despot who may or may not {wink, wink} have been instrumental in our Dear Leader’s election. Just the kind of reward he was hoping for.

As wages continue to stagnate for workers and who knows what is going to happen with farm prices now that the administration continues to step forward, then backward on trade wars, it does look like one winner in this destabilized world will be oil. Who could have guessed that would happen with the election of a Republican?

Inauguration Day saw the price of oil at $26 a barrel. That has tripled since. Everyone who buys gas has noticed the jump in gas prices in the past couple of weeks. The rise is somewhat masked by the annual “gas is more expensive in the summer” cover. 

When the current administration announced its desire to break from the 7 party joint agreement with Iran last Tuesday there was little surprise. It was also clear as a bell on a crisp night who the big winner would be thanks to this move. Russia got a huge boost in income:

“A report on Russian state media shows that Donald Trump has already delivered not just a gift to Vladimir Putin, but possibly the gift that Putin has wanted all along. In a conversation on RT, the two hosts note that to implement all the domestic programs Putin has promised for Russia, the cost will be 8 trillion rubles ($127 billion). But, where, the host questions, is Russia to get such a huge amount when the government has long been strapped for cash?

Female host says: “Looks like we found it. Trump is withdrawing US from the Iran nuclear deal. Oil prices should go up, which is good for us.”

Crude oil futures have leapt from $26 at the time of Trump’s election to $77 today. Back in January, Trump actually certified that Iran was in compliance with the nuclear agreement. However, Trump threatened to end the agreement if it wasn’t expanded to include items unrelated to Iran’s nuclear program and “strengthened” in unspecified ways.

<<snip >>

Russian oil production hovers around 10 million barrels a day. That means the increase that has already happened in oil prices is providing Putin with an extra $520 million a day. If the prices were to continue at the level generated by Trump’s actions for a year, Putin could meet all his promises to Russia—and have $60 billion to spare—just out of the net increase.”

Along with an injection to the Russian economy, Russia also got another chip out of the alliance that has frustrated them for years – NATO. Yet another point of contention among the nations that joined together after WWII to mutually defend each other in the face of Russian (Soviet at the time) aggression.

What a lucky day for Russia Tuesday was. Our leader withdrew form an agreement that even he had certified as working despite warnings from leaders in the US and around the world of what an incredibly stupid move this would be. 

It would almost make you think that our Dear Leader was more worried about the good it did for Russia than the bad it did for the US.

Just a couple of things to ruminate on this summer as the drums of war start pounding.

About Dave Bradley

retired in West Liberty
This entry was posted in #trumpresistance, 2018 Election Campaign, Blog for Iowa, Economy, Trump and tagged , . Bookmark the permalink.

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