Tuesday, February 21, 2012

How the Economy can End Obama Presidency


Did the Chicago Gang Fail to Read the Tea Leaves?

It is really great when the political advisors to a president seem to have control of the presidential campaign like the Obama team from Chicago.  David Axelrod and David Plouffe control the campaign and control White House policy as it impacts on the campaign.

After all the broken promises from the first campaign like energy independence and stopping Iran's nuclear program they have adopted a new strategy for the 2012 re-election and it seems like it is based on a couple of guiding principles.

Obama economic and energy principles

"What - me worry?"

"No problem..."

You see, the most under-rated economic barometers of presidential performance by the media, as I have pointed out in numerous articles over the last six years, are the oil and gas prices in America.

Media Deception?

Many people have acknowledged the mainstream media favoritism toward President Obama which is well documented by both your eyes watching and listening to the news, and independent media watchdogs.

A couple of examples are appropriate as evidence.  First, there has been a lot of recent publicity about the success Obama is having with the economy.  And second, the media has stopped reporting on Brent Crude Oil on the international commodity futures market.

Why you might ask did they drop the media attention?  It is not good news for the president. In fact the less said by the media about commodity prices the better because none of the energy news is good for the president.  It might conflict with the happy face Obama appearing the bloob tube.

Here are the facts.

When Obama took office the price of gasoline was $1.85 a gallon.  Today it is over $3.64 a gallon and projected to rise as high as $5.00 a gallon this fall.

Light crude oil has gone from $30.28 a barrel when Obama took office to over $104.00 a barrel today.

Brent Crude, the item the media has stopped reporting and conveniently minimizes the impact of Middle East events on world oil prices, has gone from $35.27 a barrel when he got elected to over $121.88 today.  It may reach $150.00 a barrel this fall according to some experts.

Whether you use Obamanomics or legitimate accounting, the price of gas and oil has spiraled up in the Obama years and more than doubled gas prices and more than tripled oil prices.

But oil may also expose another weakness for Obama, because the Brent oil price also reflects the impact of events in the European zone such as the Greece debt problems or the Iranian oil cutoff.

In other words there can be failures in foreign policy like underestimating the Iranian response to sanctions Obama advocated, that can also impact on our domestic ec0nomy by driving up oil and gas prices.

Instability in the Middle East can have a dramatic and sustained impact on world oil and gas prices here in America.  When Iran cutoff oil to France and the UK this week Brent crude shot up again.  This will greatly aggravate the European recession and reduce USA sales to Europe.

The Obama team was hoping to keep attention off these economic and foreign policy failures with their long term economic impact but you really can't manipulate the financial markets or the knowledge of the American people.  They are reminded of the truth every time they fill the gas tank.

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