Friday, March 30, 2012

Removing oil subsidies does NOTHING to oil prices. It is like saying if the price of corn goes up beef prices follow. Not the case.

A GOP-aligned oil industry group (click here) announced today that it's launching a $3.6 million advertising blitz in eight battleground states attacking President Obama for rising gas prices....


The facts are simple. Oil is a commodity and the price for oil is set on Wall Street through speculation. That same dynamic applies to corn and cows. 


The USA is exporting oil, that has nothing to do with gas prices at the pump, what it does do is lower the reserves for future generations. So, while speculators can exploit high prices and get away with it they are and oil billionaires are as well. It doesn't matter how much oil is in the market either, the "Oil Cartel of Wall Street" has set the price and everyone, including a Democratic President, has to live with it.


If OAT prices goes up that doesn't mean the meat producers are going to get more for their products in the market. In the case of oats and livestock it is supply and demand. The only way livestock prices goes up in that scenario is if the producers grow less. But, most farmers, especially within that scenario, will grow more livestock to make up for lost revenues which actually works against their favor. They do it anyway.


The fact of the matter is the Republicans are WASTING THE USA TREASURY on billionaires while abandoning people on Medicare.


Two income tax rates is hideous as well. It is based in ideology and not reality. To expect a family of four with an income of $40,000 per year to pay $4000 in income tax is completely stupid.


Republicans have rhetoric and Democrats have ideas.


Flexible fuel vehicles (FFVs) (click title to entry - thank you) are designed to run on gasoline or a blend of up to 85% ethanol (E85). Except for a few engine and fuel system modifications, they are identical to gasoline-only models. FFVs experience no loss in performance when operating on E85. However, since ethanol contains less energy per volume than gasoline, FFVs typically get about 25-30% fewer miles per gallon when fueled with E85.