Saturday, January 3, 2015

BloggeRhythms

Holiday lull in the news continues whereas most politico’s are still on vacation. Which, all in all, is certainly nothing to complain about. However, an article in centralvalleybusinesstimes this morning via Drudge makes interesting reading, as follows:
 
Due to the falling price of oil, “the Auto Club estimates that Americans are saving $500 million -- per day, each day – compared to the high prices paid last spring, allowing that money to be spent with businesses other than oil companies or just kept in the savings account.”
 
Furthermore, “The ripple effects of prolonged low oil prices could also pose a challenge to countries whose economic stability is dependent on revenue from oil production,” the AAA’s report says. “As has been the case in recent years in Egypt, Libya and Iran, this sort of geopolitical unrest can impact global supply and pressure oil prices higher on the threat of a disruption.”
 
Yet, Andrew Critchlow, the UK Telegraph’s Commodities Editor wrote back on December 22, 2014 that Saudi Arabia’s oil minister, Ali al-Naimi, “who oversees the world’s largest exporter of crude, said in an interview that even if the price of oil fell to $20 per barrel the kingdom would do nothing to arrest the decline. 
 
"Whether it goes down to $20, $40, $50, $60, it is irrelevant," he said in an interview with Middle East Economic Survey (Mees).”

So, what that means is, regardless of what other oil dependent nations, including Russia, wish to attempt destructively, their efforts will be hampered by significant losses of revenue, weakening them significantly.

And therefore,as far as the US is concerned, it’s a win/win situation at home and in foreign affairs which will result in significant benefits in coming years. 
 
However, as pleasing as the scenario is, one still has to wonder why an administration would not only spend the past six years doing it’s best to prevent all this from happening, but still keep on trying to move the nation’s progress backwards. 

In closing, there’s a comment from Charles Krauthammer, who when asked on Fox News Special Report last night replied: “Put the Obama Presidential Library in Havana.”

That’s it for today folks.

Adios

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