The last economic report was not what Joe Biden was hoping.
Two predictions most economists made just came true.
First, inflation is starting to trickle back up, possibly leading to a recession by the end of the year.
Second, gasoline prices are starting to rise again, which is not good news for Democrats heading into another election season.
Sell It
Biden has announced that he is going to sell off another 26 million barrels from the strategic reserve.
This will bring the reserve down to a level we have not seen in about four decades.
It is being done so Biden can score some political points, but the timing of this could not be worse from a national security standpoint.
We have a situation developing in Taiwan with China, the war between Ukraine and Russia, and now China is probing our military readiness, or at least it appears that way.
The Middle East is always a powder keg that is waiting to explode.
Point being, we very well may need that reserve at some point in the near future and it is now under 371 million barrels (the reserve holds 713 million barrels).
If we get into any kind of a conflict or our imported oil gets shut off, we are in big trouble.
Biden is putting that security blanket aside, however, so Americans do not get upset with him or his fellow Democrats over rising gasoline prices.
Phil Flynn, analyst at Price Futures Group and FOX Business Network contributor, stated, “Biden is front-loading SPR barrels to avoid a summer gasoline price spike.
“There are growing concerns among the Biden administration that gas prices are headed back to $4 a gallon and the president is fearful of the political heat he will have to take.
“By pushing barrels forward from previously announced sales he is robbing Peter to pay Paul but is discouraging future U.S. oil and gas investment.
“There should be some backlash from Republicans who are getting tired of using the SPR for political purposes and creating short-term price relief in exchange for much higher prices down the road.”
This is no way to govern and we have a legitimate national security crisis brewing right now.
Source: Fox Business
