Mitchell’s laws: The more budgets are cut and taxes inceased, the weaker an economy becomes. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity = poverty and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

More than any other single factor, Saudi Arabia arbitrarily determines oil prices, which strongly affect gasoline prices.

Monetary Sovereignty

The President of the United States is not the king of Saudi Arabia. So as powerful as the Presidency is, Obama has minimal-to-zero control over oil or gasoline prices.

Yet . . .

Washington Post
Gas prices sink Obama’s ratings on economy, bring parity to race for White House
By Dan Balz and Jon Cohen, Published: March 11

Disapproval of President Obama’s handling of the economy is heading higher — alongside gasoline prices — as a record number of Americans now give the president “strongly” negative reviews on the 2012 presidential campaign’s most important issue, according to a new Washington Post-ABC News poll.

Increasingly pessimistic views of Obama’s performance on the economy — and on the federal budget deficit — come despite a steadily brightening employment picture and other signs of economic improvement, and they highlight the political sensitivity of rising gas prices.

Nearly two-thirds of Americans say they disapprove of the way the president is handling the situation at the pump, where rising prices have already hit hard. Just 26 percent approve of his work on the issue, his lowest rating in the poll. Most Americans say higher prices are already taking a toll on family finances, and nearly half say they think that prices will continue to rise, and stay high.

Friday’s employment report showed a gain of 227,000 jobs in the past month, continuing an upward trend and offering the White House something positive to point to. Still, the survey — conducted Wednesday through Saturday — finds 59 percent of Americans giving Obama negative ratings on the economy, up from early last month.

Voters think of the President (any President) as “daddy,” and when something goes wrong, they expect daddy to fix it. I suspect that the price of oil this election year will depend in large part on whom the Saudis want as U.S. President. If they prefer Obama, oil prices will drop before November.

Interestingly, the poll shows the Democrats with huge leads over the Republicans in:

“Better represents your own personal values”
“Is more concerned with the needs of people like you”
“Cares more about issues that are especially important to women”

Never use the word “voters” and the word “logic” in the same sentence. We’re into a strange, puzzling, fun eight months.

Rodger Malcolm Mitchell

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption + Net exports