OPEC not sending Joe 'a whole lotta love'
We've learned that OPEC countries (remember those guys?) are cutting back production. This is the story:
A group of some of the world’s most powerful oil producers on Wednesday agreed to impose deep output cuts, seeking to spur a recovery in crude prices despite calls from the U.S. to pump more to help the global economy.
OPEC and non-OPEC allies, a group often referred to as OPEC+, decided at their first face-to-face gathering since 2020 to reduce production by 2 million barrels per day from November.
Furthermore, these cuts come after President Biden urged to increase production. So much for Joe Biden being the wise veteran who was going to restore our alliances and make us loved again. I don't hear "A whole lotta love" coming from the Middle East. What I hear is that you are weak and we follow the strong horse around here. Biden is no strong horse in the eyes of the world.
If you remember 1973-74, some of this may sound like watching an old scary Vincent Price movie. Back then, we had the Oil Embargo and it screwed up the 1970s. Here is a summary of that terrible episode:
After the imposition of the embargo, the price of a barrel of oil quadrupled by 1974.
As a result, the United States experienced its first fuel shortage and first significant increase in gasoline prices since World War II.
In response to the embargo, the U.S. government imposed fuel rationing and lowered speed limits to reduce consumption. Nixon seriously considered military action to seize oil fields in Saudi Arabia, Kuwait, and Abu Dhabi as a last resort.
However, negotiations in Washington, D.C., led to the lifting of the embargo in March 1974.
I remember the fuel shortages, the gas lines and all of the talk of gasoline rationing. More than that, you were limited to certain number of gallons and some stations simply ran out of gasoline.
Then came the inflation that hit the groceries and the dollar.
One big difference between today and 1973 was President Nixon. The world respected and understood Nixon, who was still very popular after sweeping 49 states in 1972. I know that the Soviets and Chinese respected him. Now, let me ask you: Does anyone, from the President of Mexico to Arab leaders, respect or fear President Biden?
I'll see you at the next gas line in North Texas. Just wave at me and we'll chat about the quarterback controversy in Dallas.
PS: Check out my blog for posts, podcasts and videos.