IS THE LACK OF DOMESTIC OIL PRODUCTION GOOD?
There has been much discussion lately concerning domestic oil production as a result of high and higher oil prices. Many political and economic leaders seem to believe that domestic oil production would curb the rise in oil prices in the near future if we would simply drill for oil here in the U.S. As it is right now, we purchase a large amount of our energy needs from outside the country. We exchange our dollars for their oil. We get the oil. They get the funny money. Thus we are shielded from our own inflation. It’s my opinion that if domestic oil production would ever be granted on a large scale by Congress, wouldn’t this create more inflation by keeping our dollars in the country? Does my theory have a leg to stand on? Sincerely, Wm. Tennant, 2008 Aug 7 MR. GRIFFIN’S REPLY: Its difficult to predict the effect because there are so many interrelated factors, including the high cost of domestic oil caused by massive limitations imposed by the environmentalist movement. A large proport
