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Socialism already here; oil being sold at a loss

Regarding socialism, we have it already. Government schools, socialized medicine, a central bank, centralization and monopolization of the means of communication and transport, and a graduated income tax. The solution is not more socialism. How about trying free-market capitalism? Equality of opportunity, not outcome.

On oil prices, the idea that world oil prices should not affect an America with an independent source is flawed. Free market forces will find an equilibrium of price in the absence of government tariffs or controls. On a deeper level, here is a theory put forth recently by Rob Kirby:

The world is continually moving away from the petrodollar. Iran, Venezuela, Russia, Iraq and to some degree Saudi Arabia are accepting other currencies for their oil, making the petrodollar and American hegemony less relevant. To counteract this loss of power and influence, the U.S. fracking industry has been ramped up to the point that we are now the world’s largest producer of oil.

The oil produced here is soaking up all those dollars that used to go to foreign suppliers. Without it, we would likely be experiencing hyperinflation from the flood of excess liquidity. But every drop of oil is being sold at a loss. Nobody is making any money. To sustain the farce, they are being subsidized by the Exchange Stabilization Fund, that black hole where $21 trillion in missing funds resides, and can only go on until that fund runs dry.

Steve Smith

Kahului