The Strategic Oil Reserves, the Saudis, the Midterms and YOU
This week the Saudis slammed the Biden Administration for asking them to increase production to lower oil prices for political reasons. The Saudis were having none of it. And they outed Biden for asking.
US midterm elections are November 8. Inflation has been raging hot, driven largely by oil and gas prices. When gas is expensive, everything is expensive. You need energy to move the economy. When gas eases, everything else eases with it. And that is shaping up to be the #1 kitchen table issue on voters’ minds going into the election. It no surprise and its nothing new.
But when it comes down to the last minute, it really is all about the economy. And once inflation and gas prices became so high as to become unavoidably political, Biden took action. Not action that would sustainably fix the problem, but put a bandaid on it at least until November 8. And then what?
Stephen Moore puts it this way in the NY Post –
"Last week [Biden] said for the umpteenth time, “I am doing everything in my power to reduce gas prices,” as he takes away oil and gas permits, cancels pipelines, increases taxes on energy, passes out billions of dollars of subsidies to wind, solar and electric-battery companies while promising to “close down” all domestic oil and gas production over the next 12 years."
No, he’s not backing off of any of those harmful policies aimed at crippling American oil production. Instead, he is trying to temporarily increase supply by asking the Saudis for output, cozying up to Venezuela, and as a last ditch effort, selling off the US strategic oil reserves.
It sure looks like the Biden Administration wants to tamp down oil prices for political advantage going into November 8.
It also seems apparent that the larger, long term goal is to get rid of oil altogether as part of the climate change agenda. One way to get rid of gas-powered cars would be making gas so unaffordable as to force the change. It’s not a great plan, but it looks like that’s the plan.
Might want to make sure you have a full tank of gas on November 8. Just a hunch. That's action item #1.
Once we get through the midterms, political pressure will shift and the Biden Administration’s true agenda on energy could resume. That could spell real trouble for gas prices and the economy as a whole. It just depends on how the elections go.
But that could also mean RIGHT NOW would be the best time to make any changes to your retirement plans, your 401(k), your IRAs before whatever happens AFTER the election happens. There is already HUGE demand for physical precious metals – silver especially.
After the election is a big Unknown. It could be another period of protracted political and economic chaos. And remember – there are almost 2 months before any newly elected office holders are sworn in.
What will the lame ducks do before they waddle out the door?
Action item #2 is to CALL LEAR CAPITAL and let's talk about any 401(k)s or IRAs that you've been considering rolling over into precious metals. Gold and silver can be a GREAT way to rebalance and diversify your portfolio and hedge against inflation. If you're worried about more inflation due to politicial uncertainty, give us a call and let's talk about your options.