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The REAL cause in the rise of gasoline prices

Panic in the oil markets!

Drudge Report is sensationalizing the sudden spike in oil prices with this graphic:

All the major news networks are asking when we'll see the pale horse of $4/gallon gasoline. Where will the pale horse be found? Cameras everywhere are on the lookout!

Some enterprising entrepreneur in California has probably already posted $4 gas and gotten a bunch of free publicity as a result.

But let's get past the hype of the current Mideast turmoil and look at what is really driving prices up.



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Go ahead, Congress. Try it. We dare you.

From Gallup:

About 7 in 10 national adults, including 88% of Republicans, say it is important that Republican leaders in Congress take the Tea Party movement’s positions and objectives into account as they address the nation’s problems.

Looks like Rand Paul has the courage, as reported by CNSNews.com:

 

 (R-Ky.), asked if the movement had been “co-opted,” emphasized just the opposite — saying that the movement itself may be “co-opting Washington.” As evidence, he pointed to the president’s opposition to earmarks in his State of the Union address.

“The president of the United States has been co-opted by the ,” Paul quipped, adding that the president didn’t like taking that position.

 

Congress is filled with arrogant, spineless characters who lacked enough creativity to engage in true wealth creation. The greatest enemy of liberty is a profound lack of imagination.  So Congress, I am joining the American people; we dare you to follow the  advice.

 

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Is the TSA now a rogue agency?

Congressman John Mica (R-Private Screening Contractors), during the heat of the TSA’s enhanced security screening measures last November, wrote letters to 100 of the nation’s busiest airports asking that they request private security guards instead. Congressman Mica, as the author of the law that authorized the TSA to take over the screening process, understood that airports were not required to contract security screening with the TSA.

Last week, on a Friday afternoon when the media was winding down its week, , in dictatorial fashion, unilaterally announced that the TSA would no longer authorize airports to “opt-out” of the TSA screeners. Naturally the TSA’s employee union, and (D-TSA Unions) supported Herr Direktor’s decision.

Read more...


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Americans are stupid...

…if they buy into this garbage.

Newt Gingrich is proving himself to be, well, a politician.

According to the Wall Street Journal, speaking before the Summit, Newtie told the audience what they wanted to hear, that the folks in the big cities don’t understand the plight of the poor Midwestern corn farmer.

Perhaps the farmers in teh corn belt could stand a little reminder of the faith many of them hold dear.

"For the time will come when they will not endure sound doctrine; but after their own lusts shall they heap to themselves teachers, having itching ears;" – 2 Timothy 4:3

Maybe they need some new teachers…

And sound doctrine.

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733 reasons Obamacare will fail

There are now 733 waivers from Obamacare. Over 500 of these waivers were issued in December, but not released until after the State of the Union Address. Curious. Right?

As the Washington Times points out, this is the norm for this administration:

"Backroom deals have become par for the course for proponents of. Senators were greased with special favors, like Nebraska Democratic Sen. Ben Nelson and his Cornhusker Kickback and Louisiana Democrat Sen. Mary L. Landrieu and her Louisiana Purchase. Even the American Medical Association was brought in line under threat of losing its exclusive and lucrative medical coding contracts with the government."

The American people have awakened to the games played by the political class. Since the day this legislation was passed, the people, specifically voters, have favored repeal. Recent polls show over half want the darn thing repealed.

The Obama administration knows this, too. They are doing everything they can to protect the infrastructure established by the law, including reorganizing the bureaucracy created by the law. An observant member of the Obama administration might do well to recall the words of Isoroku Yamamoto, who said after the Japanese attack on Pearl harbor,

"I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve."

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No one can buy or sell who does not have the mark

The Obama administration is striving to be the arbiter of all things good and right with the Internet. From eweek.com,

The Obama Administration announced plans to develop an internet identity ecosystem that officials claim will reduce fraud and identity theft while streamlining online transactions.

The logic, of course, is that people need to be protected from fraud and identity theft. That such a problem exists that the government must step in to make sure that there is no evil occurring in the purest and most democratic free market in the world. But when making the case for government intervention, Secretary of Commerce,  just sounds silly,

Read more...

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Another prediction fulfilled

As the Texas Tribune has reported,

"A federal court has denied Texas’ request to halt a federal takeover of greenhouse gas regulations in the state."

On January 6, in EPA is set to “Mess with Texas!”I predicted the result of the case the State of Texas brought to the federal courts:

"the court case will be decided in favor of the ."

I have no legal degree, I have no special knowledge of the law, but I do understand the legal battle was being decided by the federal courts.

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When do we start freaking out?

This post may be influenced by my recent viewing of the Bourne Identity and the FEMA Camp episode of Jesse Ventura’s “Conspiracy Theory,” but recent events are a bit unsettling.

First, on January 3, 2011, we found out that a major figure in security and intelligence roles within the government was found dead, from Fox News:

John P. Wheeler III, 66, was found dead in a Delaware landfill, and his death has been ruled a homicide by Newark, Del., police. They are asking the public for leads in the case.

Then on January 7, 2011, we learned of some  in Maryland. From CBS News:

Two mail packages caused some kind of incendiary reaction when opened, burning the fingers of two employees in separate incidents at two state office buildings in Maryland at almost the same time Thursday afternoon. Officials say there is no apparent connection to any domestic terror group and that the mailings appear to be from an angry individual who has a specific grudge against the Maryland State government.

Then on January 8, 2010, this from the Washington Post:

The fiery package found Friday, which was addressed to Homeland Security Secretary Janet Napolitano, followed two packages that ignited Thursday in Maryland state government mailrooms. It halted government mail until bomb-sniffing dogs could sweep the D.C. facility.

On Saturday, January 8, Congresswoman  and many of her constituents were shot, with several dying from their wounds. From Reuters:

Democratic Representative  of Arizona was shot and gravely wounded on Saturday by a man who opened fire at a meeting she was holding in Tucson. Here are some facts about Giffords.

And then we learned this from Monday morning from Roll Call:

Ashley Turton, former chief of staff to Rep. Rosa DeLauro (D-Conn.) and wife of White House liaison to the House of Representatives Dan Turton, was found dead in her car Monday morning, according to a source.

At least two of these events have the fingerprints of assassinations. The mail bombs and the shooting of the Congresswoman are both being portrayed as the actions of “lone wolf” perpetrators. Makes me wonder if we are witnessing a time of increased violence by a citizenry on the verge of losing it or are we witnessing an attempt by certain individuals in the shadows to encourage the implementation of greater government security measures or even martial law?

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While we were sleeping...

The Obama Adminstration quietly made an administrative change in the organizational chart of the bureacracies established to implement the Patient Protection and Affordable Care Act. The change moved the Office of Consumer Information and Insurance Oversight, OCIIO, from the Department of Health and Human Services (HHS) to the Centers for Medicare and Medicaid Services (CMS). I learned of this organizational change on Friday from a lobbyist colleague, and only after that did I find any news of this change. This description of the change is from National Underwriter Life & Health website:
The name of the OCIIO will be changed to the Center for Consumer Information and Insurance Oversight (CCIIO), and the CCIIO will be under the oversight of CMS officials, rather than directly under Sebelius. The CCIIO will be led by CMS Principal Deputy Administrator Marilyn Tavenner.
If you have gotten this far, you may be wondering why this matters.
Tags: Obamacare  
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Don't Drink the Water

Just four weeks ago, I highlighted a serious contradiction in government policy. Until last week, the CDC recommended fluoride concentrations in the water supply of at least 0.7 mg/L. Last week the Department of Health and Human Services announced new standards for fluoride concentrations in the water supply. Now, the recommendation is that the maximum concentration should be 0.7 mg/L. This effectively will make every fluoridated water system in the country outside the recommended standards as soon as they are adopted. 

So 14 years after public health researchers recommended maximum fluoride concentrations of 0.7 mg/L, the federal bureaucracy appears to have finally caught up with the science. 

But wait...there's more.
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When the big boys fight, the little guy ends up getting hurt

Last week I commented on former Shell Oil CEO, John Hofmeister's warning of $5/gallon gasoline. I outlined some economic arguments about why I thought we would not reach $5 gasoline. Today, I will give the political reasons why $5 gasoline might be possible. 

I spoke with a financial advisor friend of mine who has some incredible sources for information about markets and future economic trends. His sources, as he told me back in October, suggested a run-up in crude oil prices and, therefore, gasoline prices going into next summer. The target price for crude oil that he was expecting at that time was $150 per barrel. 

Shortly after that bit of news, I heard a prediction from another oil & gas insider also specifically mention $150 oil.

So what does all this mean? [Read on]
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Another reason why the Government should NOT run our schools

My 6th grader attends a government-run middle school in the Garland, (Texas) Independent School District.  He is at home this week with the swine H1N1 flu, so I’ve been collecting his assignments from his teachers and to complete at home.  One of those assignments was to compare the Magna Carta to the Bill of Rights in the U.S. Constitution.  As I was helping my son complete the work, my gaze was drawn to the government-approved version of Amendment 2.
We can get permission to own weapons to protect ourselves.
We immediately had a lesson on the Second Amendment, as I explained the word permission was no where to be found in the Second Amendment and how the reason for the amendment was to spell out our right to have the means to overthrow a tyrannical government.

Click through for more...
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Dear Mr. President, A Modest Proposal

 

Why does Health Care Reform need to be so hard and so complex? And why is it that the best the Democratic leadership can come up with is to overlay a government-run solution on top of our current, flawed health care system?

There are several areas of our health care system that are not functioning properly as you’ve noted in your speeches, press conferences and town hall meetings.

Choice. Our current health insurance system does not give individual Americans true choice. Many of us with employer-based health insurance are lucky to have more than one option through our employer. So the plan you support offers us a second choice, but not really, because the choice will still rest with our employers. Why not free up the market by allowing individuals to have real choice?

  1. Change the tax laws to remove the benefit employers have of providing health insurance to employees and instead let the tax benefit go to the individual.
  2. Allow for more competition by removing the barriers an individual has to buying a policy across state lines.

Affordability. For many Americans health insurance is not affordable.

  1. The change in tax law I mentioned earlier could go a long way to solve the problem. Make the tax benefit a tax credit, and everyone will have money to put toward a health insurance plan.
  2. Provide direct subsidies to the poor to purchase health insurance in lieu of tax credits.
  3. Expand group insurance to include associations, so more people have access to insurance at lower group rates.
  4. Remove coverage mandates, so insurance companies can develop less comprehensive and less expensive policies.
  5. Provide money to the states to help create and fund high risk pools for those who are priced out of the health insurance market due to pre-existing conditions.
  6. Expand Health Savings Accounts by increasing the cap an individual can save in a year.

Portability. The entrepreneurial spirit of Americans and the free flow of labor are often crushed by the weight of health insurance premiums. Losing a job means the loss of health insurance for many.

  1. Changing the tax law to focus on the individual would help solve the problem of portability as the individual would not lose the tax benefit to become an entrepreneur.
  2. Allowing associations to offer group policies would allow individuals to switch jobs without the concern of losing their health benefit.

Access. The ability to find a doctor is especially problematic for Medicaid patients and rural and inner-city residents. Encourage local governments to find solutions to these problems at the local level

  1. Perhaps the establishment of city or charity-sponsored health clinics.
  2. Provide tax benefits or education subsidies for health care professionals to provide services to these areas.

Cost. Not only is health insurance becoming less and less affordable, but as more people are unable to afford health insurance, the cost of care is rising. Tort reform is essential to lowering the cost of health care.

  1. Something as simple as removing or reducing the lure of punitive damages from medical malpractice suits would do the trick.
  2. If punishment of malicious behavior is the goal, let the states give their licensing boards more authority to fine the malevolent provider.

Health Education and Nutrition. You have often said that education about healthy lifestyles will reduce costs over time. There are a number of ways to encourage healthy behaviors. The legislation being considered has both punitive and positive measures. I’ve come up with two ideas that are not included in the legislation. I am certain in the vast wealth of talent our citizens possess, there are many more ways to accomplish this goal, and with better and quicker results than what I am suggesting.

  1. Support efforts at the local and state level to educate people about healthy behaviors and healthy choices.
  2. Make healthy nutritional options more affordable by removing agricultural subsidies, encouraging farmers and ranchers to diversify into other food crops and livestock, resulting in more and more affordable options for the consumer.

I haven’t submitted these ideas to the Congressional Budget Office to determine the impact to the federal budget, but I would guess the impact is either revenue neutral or perhaps even adds revenue to the coffers. As a nation we seem to be caught up in the weeds of this debate. Now more than ever we need leadership to address the six issues outlined above. As I read the bills coming out of the House Committees, the only one of these areas being addressed adequately is sufficiently is portability. Perhaps we should step back just a moment, as a nation, and assess whether the health care reform legislation is truly reformative.

Thank you for all your work to make our nation a better place.

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Moving in the Right Direction

The State of Arizona is out of money. They are so out of money, they don't have any more financial gimmicks to use to close the state's budget deficit. So, according to The Arizona Republic, the state legislature wants to sell some of the state's properties. The plan includes selling the buildings, but then leasing them back.

"In total, the list comprises 32 properties that, if built from the ground up,
come with a combined replacement value in excess of $1 billion.

The properties were chosen based on attractiveness to investors, buildings the state
would be unlikely to walk away from, such as prisons or other facilities that
provide essential government services"
The government would then use the proceeds for the sale to fund general operations. This is not unlike a family taking a mortgage on their home to buy groceries.

But...I think Arizona might just be on the right track. [More]
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The marijuana Wars - California versus the Feds?

The State of California is the epicenter of the battle between state sovereignty and federal authority, but I think something else is going on here. In the "publicly announced" War on Drugs, the citizens of Oakland, California legitimized the business of selling marijuana through the passage of a measure to tax weed. Yesterday a conglomeration of federal agencies and local and state vassal authorities launched a crackdown on marijuana growers in the Fresno, California area. Operation SOS netted plants valued at $1.2 billion.

Are the federal authorities challenging the will of the people or the sovereignty of the state? Or is something else afoot?
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