35 MPG Trucks!

In an expected announcement yesterday, President Obama announced sweeping reform in the auto industry and their miles per gallon (MPG) average. Obama wants fleet averages to be 35 mpg. Is it at all ironic that this announcement comes on the heels of the virtual government take-over bailout of General Motors (GM) and Chrysler (SUCK)?

And really, what really is sweeping reform? It's rhetoric! Obama says nothing but rhetoric. He is the King of Saying Nothing. When Obama says, "We need comprehensive change that will allow middle-class Americans to move forward and achieve their dreams", what has he just said? Nothing! Fortunately I have my handy-dandy rhetoric detector for translating such nonsense to see if there is any real meaning. When I typed in "sweeping reform" it is translated to "changes where the government gets what it wants". So in this case, the rhetoric actually means something, but not what they want you to think it means.

How will the car companies achieve this lofty goal, considering that the American car company fleets also produce commercial trucks that are used by small businesses? Like any Democratically-controlled Congress would say," screw the small businesses!"

As in my previous post, every action has an opposite and equal reaction. What will be the reaction? To achieve this goal, car companies will be forced to produce smaller cars that Americans do not want, and the bigger cars and trucks that they do produce and sell will be made out of plastic, Styrofoam, and cellophane. How else can you get better gas mileage out of an 800lb engine?

Using top-notch rhetoric to support his claims, Obama said that his new mandate will save Americans over $1.5 billion in fuel costs alone. Over how long? It doesn't matter. Americans are too stupid to realize that there's no substance to what he's saying. It may take 900 years to achieve $1.5 billion in fuel savings. But who cares? We're moving forward.

Will there be any other reactions to his new order thinking? Let's see - fuel - we will use less. Will the OPEC nations and fuel companies accept that they are getting less revenue because of the simple fact that we are using less oil? Or will they continue to raise the price to the point where we will pay top dollar for the little amount that we use? What was that rule that we learned in Economics 101? Supply and Demand?

What is Supply and Demand, ask all the politicians? As you decrease demand without altering supply, then the price will go down. However, the suppliers can decrease the supply to the point where the price will increase. The suppliers will ALWAYS get their money for a product that is needed. Why do you think Doritos cost so much money? Because we NEED them! Therefore, even though we will be decreasing the amount of fuel needed to power our Smart Cars, Saudi Arabia and Exxon WILL decrease the supply and raise the price, thus guaranteeing that they continue to make the revenue that they deem necessary.

Obama - at least a few of us can see through your rhetoric.