A Gas Problem Which Tums Can’t Cure
June 2008
NAFTA was created to benefit three nations [Mexico, Canada, and ostensibly the United States] jointly acting together to realize the potential of joint economic coordination.
So when we request that they double their oil production to help us reduce the price of gasoline and oil usage—the answer is their immediate NO since they proclaim we do have and control oil in the Gulf of Mexico and Alaska, which we should first develop in the next decade. As partners with us in NAFTA, it would show our loyalty [read stupidity] as we wouldn't want them to lose out on income from non-NAFTA customers. The bottom line appears to be that we have surrendered our sovereignty or given it up while they have retained and enhanced theirs.
We should immediately demand the increase in production, impose safety regulations on Mexican and Canadian vehicles, reinstitute tariffs on competing products to be no less than they charge on similar products and reevaluate the benefits from NAFTA and eliminate any disadvantages to the U.S. or possibly just seek its repeal.
So as not to be unfair to our "friends" in my Commentary, I, for one, recognize that Mexico has, in fact, increased the production and distribution to the United States of one of its major energy sources—cocaine.
And, as I have indicated in the past, this includes our moderate friends in OPEC as well, since most of them are selling crude oil in today's market transactions at less than $100.00 while at the same time today selling crude oil futures on the open commodities markets at $130.00, more of less, which is quoted every day in our newspapers. The only thing that is crude is their reaction to any request from the U.S.—they have learned to take for so long that they are totally unaware of giving-at least in response to the U.S. A rational energy approach is beyond their ken.
Probably what should concern us, in addition to the price of gasoline, finding alternate sources of energy, or selling America at bargain prices, is that those bargain sales can come back to kick us in the face if Saudi reserves are actually, as some have reported, far less than they have claimed [you remember Ponzi from a prior column] or that bin Laden or some other terrorist may have taken Saudi Arabia—his country—back from the royal usurpers who still may own substantial interest in American businesses and financial entities.
They have been dealt a royal flush allowing them to call upon the U.S. to protect those interests and/or will they be able to force a commitment of American forces into Saudi Arabia or whatever other friend who had been buying us on the cheap?
The dangers are legend based on the creation of a dysfunctional infrastructure called America. Probably, this is best exemplified by the transitory information when one matter gets too close to public concern and desire for action-just then the new issue is presented.
One prime example is the increase in the unemployment rate which merely means an increase in those seeking unemployment benefits. It doesn't include those who already have completed receiving benefits and are seeking jobs or the millions of others unable to find work in a depressed economy.
So, if you take that into account, and you count on the upcoming announced dismissals and layoffs, you are now ready to be convinced that they are attacking the increase in the cost of gasoline by eliminating the unemployed from traveling on our highways or wasting home fuel on their foreclosed homes. That is no less convoluted that our present approach to the problem of oil prices which has decreased airline travel, automobile production, etc.
Oh, by the way, we still have not received the benefit from Iraqi oil which we were told would cover all of the war and reconstruction costs. The only thing we are told is that 500,000 gallons of oil are being diverted daily to the black market.
What about releasing some of our National oil reserves? Even our own government says NO since we may need it in the future-they haven't told us whose future. Actually, they may mean sustaining commodity futures.
Other than self-flagellation, reducing the gas tax [which the oil people will figure out how to take to their own benefit], selling SUV's and buying small cars, no one has suggested one solution that will actually work.
During WWII, we had something called gas rationing, personal and commercial, which basically controlled supply and demand. Was it perfect? No, but it was fair and actually did work.
No matter how you appraise the situation, any rush to judgment we may make will be no less than a fantasy—it will be a fraud.
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