America Cannot Afford Another Four Years of Barack Obama!


by Richard H.  Frank

It is now 18 months prior to the 2012 Presidential election and already paranoid politicians and the liberal media are in full campaign mode.  The most paranoid individual, in my opinion, is our neophyte President, Barack Obama, whose double-talk is evident in every speech he delivers.  The blame game is in hyper-drive as Obama attempts to divert the realities of his failed policies to the worn-out campaign rhetoric of distortion and outright lies about the opposition.  His call for civility and transparency without vilifying individuals or organizations is laughable when in the next breath he reverts to using these exact tactics.

Somehow, the media and Democrats seem to believe that Barack Obama has proven his leadership ability to America through the assassination of Osama bin Laden.  Eventually, the truth will be known and show that in the face of the evidence provided by the CIA and military intelligence, Obama was forced to give the go-ahead to the plan conceived, not by him, but by the military, or be shown as the indecisive individual he has shown himself to be in the past.

President Obama and  his administration have a major problem to deal with in the upcoming 2012 election.  That problem is their dismal record of driving America rapidly into bankrutcy and the eventual collapse of the dollar.  Their failures are evidenced by the disasterous results from stimulus sending, corporate bailouts, increases in the deficit and policies that have prolonged the recession which now has all the signs of entering a double dip with new claims for unemployment exceeding 1.0 million last month.

The President’s position is that he and his Administration did not realize how bad the situation was when they assumed office, that his campaign promises such as reducing the deficit by half during his first two years and keeping unemployment no higher than 8% could not be achieved.  The truth is that America elected Obama to the highest Office in the land, an individual with zero experience at running anything, based on his rhetoric of hope and change and fundamentally changing America and the world.

Only now are “We the People” beginning to feel the impact of Obamacare and are coming to the realization of the distortions and outright lies told to America about the legislation.  I can only pray to God that our Supreme Court finds this disastrous piece of legislation Unconstitutional before it can be implemented further.

Obama’s latest target is once again to focus upon “big oil” and its enormous profits.  His latest attack is to remove any subsidies given to oil companies while demanding subsidies for solar and wind energy development.  If subsidies for oil are eliminated then so should those for solar, wind and electric vehicle development also be eliminated.  This will not happen as solar, wind and electric vehicles cannot compete economically with petroleum-generated energy.

When Government endeavors to pick winners and losers in the economy they alter the competitive playing field in favor of their ideological preferences through subsidies.  Unfortunately, the American Consumer pays the price for Government’s ideological preferences as opposed to free market principles of supply and demand.

Consider the impact curtailment and regulation of domestic oil production has had on the price per gallon of gasoline we pay at the pump over the past 25 years.

Dom.Production

Nominal Avg

Inflation Adj.

M/Barrels/Day

Price/Gallon

Pr@2010 Dollars

1986

8.75

$1.00

$1.70

1988

8

$0.98

$1.70

1990

7.5

$1.10

$1.80

1992

7

$1.08

$1.70

1994

6.6

$1.10

$1.60

1996

6.5

$1.20

$1.60

1998

5.9

$1.10

$1.40

2000

5.8

$1.45

$1.80

2002

5.75

$1.40

$1.60

2004

5.5

$1.80

$2.50

2006

5.1

$3.00

$3.25

2008

5

$3.15

$3.00

2010

5.5

$3.00

$3.00

May-11

5.5

$3.98

$3.98

Between 1986 and 2008 domestic oil production in the U.S. dropped by 43% and we saw a corresponding increase in the cost per gallon of 215%.  Critics of increased domestic production say the increase is primarily due to inflation and Mideast oil cartel manipulation of the price per barrel produced to meet worldwide demand.  They fail to acknowledge that energy prices have a dramatic influence upon inflation as well as Government’s recent move to monetize our debt by the massive printing of dollars that reduces the purchasing power of every American.

If we accept the argument of those that oppose domestic oil production but had just maintained the 1986 level of production, the price at the pump today would be $1.70/gallon, not $3.98.  Instead, we have wasted 25 years and cost our economy trillions of dollars transferred to the Mideast and lost millions of new jobs for Americans in the process.

Yet we see His Majesty Barack Obama while in Brazil pledging financial support to Brazil’s oil development industry and pledging the U.S. as a customer to their economy instead of pursuing domestic development at home.

One final point to be made about Obama’s vilifying big oil.  In 2003 there were 28 energy producers operating in the United States.  These firms had operating income of $828 billion dollars and paid Federal taxes of approximately $38 billion. The total capital employed by these firms was much larger – $638 billion which translates to a return on capital of 12.8%.  The average annual return on equity between 1973 and 2003 was 12.6% for fossil fuel companies and 13.1% for the S&P industrials.  In either event the oil producing companies’ return has historically been less than S&P companies due to the huge development costs for exploration and eventual production.  Let us also not forget that big oil accounts for 9.2 million jobs that contribute to our economy and the Federal revenue stream.

The opposition to Barack Obama and the liberal Democrats in Congress need to learn the facts and confront the lies of the Administration headon over the coming 18 months.  The barrage of half-truths and lies being gathered and edited into sound bites and talking points will not stand the test of the facts.

The record provides the evidence as to why we cannot afford to re-elect Barack Obama and the liberal Progressives in Congress and America should be forewarned that Barack Obama will do everything in his power to smooth talk, persuade, and “charm” his way into office and we must remain vigilant and continue to educate the uneducated about this man’s lack of qualifications for the Office.

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