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Clinton to Abolish the Relationship of Supply & Demand and Risk Premiums
I know who I am voting for now. It will have to be HRc. This person is not just a candidate, but some kind of deity. She has promised HERE that if she is elected that the price of oil will immediately drop because [get this] …”I predict to you, the oil-producing countries will lower prices to stifle Americas incentive to develop alternative energy.” Does she not know that the oil producing countries don’t set the price of oil, the market does? They can only “attempt” to control the supply of oil and to bring down the “market” price of oil they will have to produce more oil, something that cannot happen easily or is easily sustainable.
Further, the largest market component of the price of oil today is the “risk” premium that is built into the market value. This is a premium that is inherent in the price of oil in view of the possibility of the curtailment of supply due to Middle Eastern hostilities. I believe that you can equally argue that a precipitous withdrawal from the Middle East by the U.S. could actually increase this risk premium.
To me the most obvious and likely cause of a reduction in the price in oil following an HRc election victory would be the decrease in aggregate demand that would be caused by the world wide recession that could very likely be provoked by the tax policy that HRc has asserted during her campaign. If you think this is greedy Republican talk, just sit back and watch. Hopefully your job is protected……
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7 Responses to “Clinton to Abolish the Relationship of Supply & Demand and Risk Premiums”
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[…] Next Stop Lauderdale placed an interesting blog post on Clinton to Abolish the Relationship of Supply & Demand and Risk PremiumsHere’s a brief overview […]
[…] Next Stop Lauderdale created an interesting post today on Clinton to Abolish the Relationship of Supply & Demand and Risk PremiumsHere’s a short outline […]
Hillary’s hubris is unmatched. Yes, the laws of supply and demand bow down to her as well!
Hi Neil……..Yeah and did you see that link below that Patrick left. She is totally unbelievable. And you can see all the candidates Christmas ads here at Patricks site.
http://pursueliberty.wordpress.com/
……….steve
Did you see her blatantly socialist Christmas ad? Yikes! http://www.youtube.com/watch?v=yzBvQ9EeF3k
Merry Christmas!
Unbelievable, what a crock……….steve
“You don’t have to fool all of the people all of the time; you just have to fool enough to get elected”
- Gerald Barzan
plodon………You are sure right about that, and this adage is very operative with HRc. Merry Christmas……..steve
Merry Christmas from Lord Crimson
Hi Steve,
The only flaw in your calculations is that Hillary may well be the antiChrist. Thus, when she’s elected and oil prices magically drop, it’s necessary to have a cover story in place to explain her Satanic power. Oh, or it could be that she’s an idiot.
Happy New Year,
the Grit