Armstrong Economics Blog/Energy Re-Posted Mar 11, 2022 by Martin Armstrong
“We are now in very active discussions with our European partners about banning the import of Russian oil to our countries while, of course, at the same time maintaining a steady global supply of oil,” Secretary of State Blinken said on “Meet the Press” on NBC last Sunday. Then we have Biden blaming the price rise of gasoline on Putin ignoring the fact that prices have been soaring before the Ukrainian crisis. This photo is from California months BEFORE the Ukraine manufactured crisis.
Now we have Congressional Democrats who are about to create an even worse shortage by proposing a new tax on large oil companies designed to “curb profiteering” by redirecting profits associated with higher crude oil prices to back drivers. The Big Oil Windfall Profits Tax Act, introduced by Sen. Sheldon Whitehouse of Rhode Island and co-sponsored by 11 other Democratic senators on Thursday, would collect a portion of the profits companies are currently yielding with oil at its highest premium in more than a decade and return it to consumers as quarterly rebates. This is our problem. We have people in government with ZERO understanding of even how the economy works. Imposing such a tax of this nature will create shortages for it will act as price control.