How the oil man Bush raised the oil price and now holds the country hostage to environmental pollution by drilling offshore
It was interesting to hear US President George Bush, a failed businessman who destroyed the economy his country and took the world hostage to an illegal war that should have never happened.
President Bush urged Congress today to permit drilling for oil off America’s coasts — on the outer continental shelf — to combat rising oil and gas prices. This is the biggest set up in the history of the world.
When Bush took over Whitehouse in 2001, gasoline price hovered between $1 and $2. Today it is between $4 and $5. This is how Bush and his adminiostration helped the oil price rise:
The Iraq war took away 1.4 million barrels of oil per day from the market. Very little of that eventually came back. When Bush Administration took over power from the Clintons, the dollar was strong and gold price was making new lows. Bush Admionsitration decided to spend ruthlessly in the name of conservatism and increase the budgert deficit. In the name of illusive globalization of trade they allowed countries like China and India to dump goods and labor in the US market. The budget deficit and trade deficit went through the roof and the US dollar lost half its value.
The lower dollar made the oil producers less enthusiastic to produce more oil. OPEC decided to restrict oil production. At the same time guess what India and China didi with the free flowing outsourcing money from United States? They subsidized petroleum products for their own citizen. That in turn increased world demand for oil by 40%.
Bush Admionistration did not stop at this in helping the oil tycoons that helped them to come to power. They went ahead and expanded the strategic oil reserve at a time when oil price on average is rising 30 to 50% every year. Instead of releasing the strategic reserve stock, they increased stocking it. It was the biggest consumer unfriendly move. Buying oil at the peak to build extra reserve when people in the country is going hungry to pay for their gasoline bill? It never made any sense as a leader who was put into power through a democratic process. It was a nonsense from the economic perspective too.
Now it becomes clear why Bush did what he did to artificially boost the oil price. At this stage he can make aq case that oil price will come down by drilling offshore and in Alaska. Fact of the matter is that these political spins of the same Administartion who lied on ‘Weapons of Mass Destruction’ to start an unnecessary war. It is a way to hand over the trillions of dollars to these oil ccompanies and oil infrastructure companies like Dick Cheney’s Haliburton.
Source: India Daily
Tags: crisis, fuel costs, George Bush, interesting, price rising