Deer In The Headlights?

How much can we talk about the price of oil? At some point, we have to start wondering what it will take before we see some leadership from the White House. We have all heard of a lame duck president, but have you ever heard of a dumb duck president?

Oil is now trading above $140 a barrel, and yet nothing encouraging or constructive is coming from our leaders. It is just like the corporation that has been run into the ground by a bad CEO. I am amazed that no one is not doing more to explore more ways to meet this oil crisis.

Now Libya is saying they want to reduce production because they believe the United States is interfering with OPEC. Hell, I wish our country would do something about the grip OPEC has on our economy right now. But, the situation is like a deer in the headlights, no movement just waiting to get run over by our inability to respond.

Inflation plays a big part in the way oil is priced today. The move by investors around the world to commodities as a hedge against the erosion of purchasing power of the US dollar continues to play out. The once strong and secure US dollar is not being perceived as strong as it once was. As for the security of the US dollar, we still are the country to be in. Regardless of all the problems we are facing, the United States is the country to be. When we see a change in the direction of immigration, then we will have something to really be worrying about. The economy of the United States will come through this cycle. The only question is how much damage to the American family will be absorbed by this change in the price of oil. People will out of necessity have to rearrange their buying habits.

The stimulus checks are not going to be enough to pay for gas for even a summer. Stay tuned.

Afternoon Comments: Comments On The Fed's Actions in March 2008

The Fed did the right thing by stepping in and arranging the sale of Bear Stearns to J.P. Morgan. In my opinion, the issue should not even be debated, that's how sure I am the Fed did the right thing. Unfortunately, the Democrats in Congress need to start out with Econ 101 before they find fault with Ben Bernanke and his staff for what they accomplished for the good of the whole nation's well being. Senator Chris Dodd did not know he was getting a special VIP rate on his mortgage from Countrywide, yet they, Congress, understands the effect a bankruptcy by the fifth largest investment bank on Wall Street would have had on our financial markets at home and around the world. Please, give me a break! I should apply for a Federal grant to teach economics to members of Congress. Bernanke prevented a disaster of such proportions that it would have made the oil crisis look like a non-event by comparison. This nation is fortunate that when it comes to the Chairman of our central bank, we appointed someone with the education to do the job, and do it well. Democrats in Congress and Republicans challenged by economics, Bernanke did one hell of a good job and it may be years before you all realize the pain and suffering that he avoided for his country.