April 01, 2010

Drill baby drill...but why?

Armageddon Armadilllo drill rig Most of you are aware of the Obama regime's announcement that he would be opening up areas of offshore ocean waters to exploration for energy sources such as oil or natural gas. Are any of you asking the same question that I am?
....Why is Obama going against his base which is fiercely opposed to any new energy development of any kind and would rather see us live like cavemen than live in a modern society? What is his motivation for doing this when it will anger, if not totally infuriate his base?
I was watching Fox Business network when I saw the answer. While I do not fish Fox news or talk radio for blog material as most of you watch and listen to those media outlets, I do admittedly watch and listen to Fox Business Network for material as it is a gold mine of material for this blog that most people don't have a clue exists or think of it a a source for political material but it is a simple fact that politics and economics are forever linked and a forum where people discuss economics openly will by nature be a perfect source of insight regarding politics, if you understand economics well enough to connect some dots (which most of our readers here can).
The answer is money. Obama by using thug tactics, arm twisting, etc on those who supported his campaign from 2004-2008, Obama is now facing hostility when it comes to fund raising for midterm elections. By attacking Wall Street, the Banking system, and the Chamber of Commerce, along with pushing anti-business, pro-labor union legislation, those evil "lobbyists" and "CEOs" who financed Obama's campaign thinking he would be a "moderate" are now tired
of being villified, demonized, taxed and penalized.
Now, after 2 years of such treatment, Obama is now having to turn back to those same folks to support the Democrat reelection push while currently pushing anti-business legislation such as the Dodd bill (which would split up financial entities), and threatening businesses that complain about the healthcare law that they will face the wrath of Waxman (the Nose)
if such actions continue. The DemocRATS have to sell the healthcare law to the skeptical American Public which is unhappy about both the process and the legislation. That process will be far more difficult with hundreds of businesses announcing job cuts and revenues lost due to this new law, so Dems are again resorting to Chicago thug tactics to try to scare businesses into marching in lockstep the the Waxman Gestapo.
So, in the process of allowing oil
exploration, permits will be sold either via auction or via no-bid contracts (another broken Obama campaign promise). There is no guarantee that sources of energy will be found, or that the government will allow extraction of such sources. There is also no way of tracing the money received from the contracts and related permits given. So this potentially helps Dem campaign efforts both in the obvious way with permit money and gives Dems a decent reason to give oil companies when they hit them up for campaign donations.
One reason going to sources like oil companies will be necessary for Dems is that as I said previously, old sources of money have dried up. One such major source was JP Morgan Chase CEO Jamie Donovan attacked the Dems, and Obama by name in his annual letter to shareholders claiming demonization of large banks by politicians as being a major cause of the "rocky relationship" between Wall Street and Washington.
Two factors that make this a big story is first, that Diman used Obama by name in this report, and second, that Donovan and JP Morgan Chase were among the largest donors to the Obama campaign. By doing this, Donovan will be called to testify before Waxman on Capitol Hill which amounts to an open declaration of war on the part of JP Morgan Chase, and in reality, Wall Street in general on the Obama administration. I guess all those academics and terrorists who educated mr. obama never taught him the lesson about biting the hand that feeds you.
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