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Thursday, December 30, 2010

What Does The Presidency Have To Do With Gasoline Prices?

The former Shell Oil president who claimed the BP oil disaster could be cleaned up by attaching a big vacuum cleaner to a supertanker is now making a new claim: he's saying that by the time the presidential election rolls around, gas will be at $5 per gallon.

What does the presidency have to do with gasoline prices? Everything. Just ask George W. Bush.

But I'll go out on the limb here to make an easy prediction. That if unemployment stays unelectably high for Obama - gasoline prices will probably stay relatively flat or low. But if unemployment starts looking like a non-issue by New Year's 2012 AND the Fed continues to flood the market with dollars - they will start racheting gasoline up to $5 or higher by August 2012, regardless of supply and demand. Corporate America is fully prepared to take it up to $7 if Obama's economy really starts booming. One way or another, they're going to do all they can to get rid of Obama - and $5+ a gallon will do it if the unemployment picture won't.

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