So let me get this straight. Joe Biden orders gas stations to lower their prices.
Here’s the tweet: “My message to companies that run gas stations and set prices at the pump is simple: this is a time of war and global peril. Reduce the price you charge at the pump to reflect the cost you you pay for the product and do it now.
Now, first of all, if Donald Trump did that, the House would impeach him as an authoritarian dictator, ending democracy and taking over the economy, which right now, given that the ‘Uncle Joe destroyed a perfectly good economy in just 18 months, wouldn’t be so bad if Donald Trump took control of the economy. He would right the ship, but I digress.
The industry folks at the US Oil and Gas Association lambasted this Biden order in a very pleasant way over the holidays with this tweet:
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“I’m working on it, Mr. President. In the meantime, have a happy 4 and make sure the WH intern who posted this tweet enrolls in Econ 101 for the fall semester.”
In a harsher tweet, former Amazon CEO and multi-billionaire Jeff Bezos tweeted this: “Ouch. Inflation is far too big an issue for the White House to continue making statements like this. misunderstanding of fundamental market dynamics.”
Let’s dig a little deeper into this presidential error. First, Mr. Biden’s promise to end fossil fuels makes me think he really isn’t unhappy with high gas prices. Far Left Climate Change People Still Think higher fossil prices will move everyone to renewable fuels and electricity. It is a myth; It will not arrive.
All that’s really happening is that middle-income workers are being killed by high energy prices, which trickle down to high food prices, and they’re extremely unhappy with President Biden’s rule.
In fact, in a recent Monmouth poll, voters’ biggest concern: 33% inflation, 15% gas prices, 9% savings, 6% running bills and just 5% abortion – but remember, or maybe Mr. Biden should remember this, or maybe his intern should remember that to have lower gas prices, you need more gas.
That means bigger and bigger refineries. It means permits. This means leases. It also means pipelines, but his administration’s policy is against leases and permits for anything related to fossil fuels. They oppose it.
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His Home Office just came out and basically said “no new leases”. Interior, Energy and the EPA have stopped new permits.
Now the recent Supreme Court decision overturning the authority of the EPA could change that and there will be court battles, but in the meantime the Biden administration is doing everything it can to shut down oil production, natural gas, LNG, coal and gasoline. So without more oil production, pipelines, and refineries, you’re not going to increase supply or reduce prices.
By the way, these service stations are 95% independent. Most of them are kind of supermarkets. Their margins are very thin and they are not going to be intimidated and then, to top it all off, after several sales of strategic oil reserves, the SPRO caverns will have been reduced by almost 50% from around 650 million barrels around 350 million. and it also turns out that the Bidens actually export SPRO oil overseas, which is incredibly stupid.
SPRO is there for energy security and national security, not political pricing. The United States should increase its LNG exports, which would create more production all around oil and gas companies, but here too Biden’s policies are getting in the way.
Just to add one more point, the EPA is said to be issuing ozone rules that would reduce or end oil production in the Permian Basin in Texas, which accounts for 43% of oil production.
With the new Supreme Court ruling against the EPAanything resembling these ozone rules will be sued, but my point is that this is yet another move by the Bidens to end fossil fuels.
The reason the Biden intern should learn some econ 101 is simply this: if you increase the supply of something faster than its demand, the price will go down, but if you decrease the supply, the price will go up. Joe Biden’s extremely progressive and left-wing climate policies are doing everything they can to reduce supply.
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Even Russia is now producing oil at pre-war levels purchased by India and China. Germany and other parts of Europe went back to coal. The G-7 idea of controlling global oil prices is dead on arrival.
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When Joe Biden loses the support of Silicon Valley billionaires like Jeff Bezos and Elon Musk, you know he has political problems.
Guess what? He has political problems. That’s why the cavalry is coming and that’s my riff.
This article is adapted from Larry Kudlow’s opening comment in the July 6, 2022 edition of “Kudlow”.