Monday, August 9, 2010

Blame Bush or Democrats

Who Is Really To Blame

by Ronnie Spangler

With the elections drawing near the Democrats have become desperate. The blame game was going on long before and ever since President Obama took the oath of office. Until this point in time it has worked well for him and his Progressive friends. Unfortunately for the President and members of Congress the American people have become more engaged and they are at the point of rebellion. Maybe now is the time to look back and remember what really happened to our economy and who is really to blame.

Think back to 2006 when the Democrats took control of Congress and ask yourself who controls the spending in our government. Now remember who controlled the committees in Congress that were supposed to be watching over people like Fanny Mae and Freddie Mack. Who was it that said, after being warned by the White House, nothing was wrong with Fanny and Freddie?

Did President Bush veto any bills that had Congress spending like drunken sailors, no. Ask yourself why. Maybe because he needed all the support he could get to fight the 2 wars we were in then and are still in today. Think about how every time a defense bill came before him Democrats added pet projects that had nothing to do with fighting these wars. To veto any added earmarks he would have had to veto the entire bill. Remember in 2007 the Dems (Harry Reid and Barack Obama) were proclaiming the war in Iraq is lost and did not want to fund the surge. After they added all of their pet projects the funding was approved. Surge worked out pretty well.

Now remember what happened as the Presidential elections started to gain speed heading into 2008. Everyone seems to have forgotten how the price of oil and gas began to rise and as the elections neared, all of a sudden they skyrocketed. What happened to average working people and small business? Workers found themselves having to decide whether to pay their bills (rent/mortgages) or buy gas to get back and forth to work. Due to the high increase in fuel prices transportation fees went through the roof. Business at 1st passed these increases on to the consumer. The result was consumers cut back on buying their products. Then business began to cut back on employees, unemployment began to rise.

Remember scenes and stories like this:

Why did the price of oil go so high? No valid reason was ever given but the impact on families and business around the country was devastating to some. Did the high cost of oil and gas contribute to the housing decline and eventual burst of the housing bubble? I believe the answer is yes. If a family has to decide whether to buy food and clothing for their kids or pay their mortgage they may decide to let a payment go for one month thinking they may be able to pay it the next. Some folks even used mortgage money to buy gas in order to keep their job. Employers didn't want to hear, I couldn't come to work because I didn't have gas money.

Some people speculated that investors like George Soros was using oil for political gains. Since there was no shortage in oil production around the world people believed the market was artificially high but Congress refused to act. Regulators did next to nothing to investigate hedge fund investors even after some were caught illegally buying and selling on the market.

All of this played well for the Democrats since there was a Republican President to blame. Throughout the Presidential campaign Democrats beat the Republicans for letting prices get so far out of hand. Their big complaint and answer to the problem was not enough Democrats controlling Congress so voters needed to elect more. The voters did and for some unknown reason the price of oil and gas miraculously started to decline after the November elections.

By this time the damage had been done. People were so far behind in mortgage payments they couldn't catch up. Consumers had stopped buying resulting in employers laying off employees. Like dominoes everything started to crash and to this day all we hear from Democrats is blame George Bush and the Republicans. I just don't buy what they are selling and I believe most Americans are not buying it either.

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  1. I'm afraid to say sir that the evidence supports the theory that global oil production is beginning its decline. The price of oil used to be $20 a barrel, look at it now.

    It also ties in with the military activity in iraq, afghanistan and pakistan. These are resource rich nations that are critical to maintaining oil production at current levels.

    After the 72 oil shock, there was clearly the spare oil to go around, as the US economy continued to expand, but this time, it appears there is little spare oil production to go around, otherwise growth would have resumed soon after the 2008 price spike.

    The only possible solution i can see is industrial hemp converted to methanol, grown locally to enable states or localities to operate without as much crude oil based fuel or food. Its not the end of the world, but its a serious situation.

    All the best

  2. Sorry I can't agree. There is no shortage today and there has never been a shortage.

    Politicians have used the economy for political gains in the past and they are not above using today. Oil is no different it is a commodity. Investors like George Soros will use any means possible to game the political system to achieve a one world order.

    If there was a shortage why does the price of oil rise or fall with the DOW. I don't recall the price jumping with Gulf spill or the Obama moratorium. Both incidents reduced the amount oil available on the open market.