Obama On Oil Speculation: “so we’re going to bet that oil is going to go up real high. And that spikes up prices significantly.”

Obama is back to blaming oil speculation for the rise in oil prices.

“There’s enough supply,” he added. “There’s enough oil out there for world demand. The problem is, is that oil is sold on these world markets, and speculators and people make various bets, and they say, you know what, we think that maybe there’s a 20% chance that something might happen in the Middle East that might disrupt oil supply, so we’re going to bet that oil is going to go up real high. And that spikes up prices significantly.”

Wow, this guy should be a commodity or stock broker with insight like that. The problem is, per usual, what Obama is claiming is not the case. Speculation reduces price volatility, not increases it.

Take a look at the price volatility of two commodity’s. One where speculation is allowed and one where it is not.
Via Adam Smith.org:

Yes, that’s right, onions, where speculation through futures and options has been banned this past 50 years, are vastly more volatile in price than oil is, where everyone and their grandmother can speculate to their hearts’ content.

If you think speculation causes price volatility, just have a look at what happens to price volatility when speculation is banned.

Obama can demonize oil speculation all he wants. However, all his attacks on ‘Big Oil’ and free markets will not change the fundamental principles of economics.

Saturday Night Links: The Fear Monger Edition

As I’ve asked in the past, who are the fear mongers? Via the Guardian:

I am 16 years old. This morning I filed a lawsuit against the United States of America, for allowing money to be more powerful than the survival of my generation, and for making decisions that threaten our right to a safe and healthy planet.

Our parents’ and grandparents’ generation have created a problem. They’ve developed a society that depends on burning fossil fuels, like coal and oil, to survive. They never realized that there were any huge consequences to running our lives with fossil fuels. But now, we do.

Our addiction to fossil fuels is messing up the perfect balance of nature and threatening the survival of my generation.

I wish someone would explain to our earnest 16 year old friend how life expectancy has increased with the rise of technology and the use of ‘fossil‘ fuels.

Rocking post: Times Like These

Video: Raising the debt ceiling is bad for the economy

California University Students Predicted Osama bin Laden’s Whereabouts in 2009?

Communists and Unions Living Together…

‘Bot: Situation Room

Unmanned Phantom Ray makes first flight

The Hidden Tax

Bob Seger – Heavy Music

Conservatives On Fire: Public Enemy # 1

Obama administration floats draft plan to tax cars by the mile

Since todays weather was so nice today, a cool motorcycle…

Does America even know what courage is anymore?

Beer Guns and Baseball: Why is Inflation so Bad?

Understatement of the year: Something is Rotten in D.C.

Rutgers student pleads guilty to ThoughtCrime

Justice Department Questions NCAA

It seems that the GOP is not serious about reining in spending

Via the WaPo:

Senior Republicans conceded Wednesday that a deal is unlikely on a contentious plan to overhaul Medicare and offered to open budget talks with the White House by focusing on areas where both parties can agree, such as cutting farm subsidies.

On the eve of debt-reduction talks led by Vice President Biden, House Majority Leader Eric Cantor (Va.) said Republicans remain convinced that reining in federal retirement programs is the key to stabilizing the nation’s finances over the long term. But he said Republicans recognize they may need to look elsewhere to achieve consensus after President Obama “excoriated us” for a proposal to privatize Medicare.

So, what is the GOP willing to work on if they aren’t going after any entitlements?

That search should start, Cantor said, with a GOP list of proposals that would save $715 billion over the next decade by ending payments to wealthy farmers, limiting lawsuits against doctors, and expanding government auctions of broadcast spectrum to telecommunications companies, among other items.

Wow. Way to stand on principles GOP….

 

GM Sells 493 Chevy Volts in April While Chrysler Sells 9802 Grand Cherokees


493 Chevy Volts sold in the month of April… I’m so glad the State of Michigan, under the ‘stellar’ leadership of Democrat Jennifer Granholm, decided that Michigan is going to focus on the lithium-ion advanced battery for electric cars.

While sales of the Volt and Nissan Leaf (a whopping 573 sold this April) continue to flounder, the unabashed Jeep Grand Cherokee SUV sold 9802 units for the month of April.

Liberal America: 1 in 7 Americans Receiving Food Stamps

Welcome to liberalism in America where 44.2 million people are getting food stamps.

Via The WSJ:

Growth in the food stamp program appeared to reach a plateau in February — with 14.3% of the population relying on the safety net program.

The number of food stamp recipients was essentially flat in February, the most recent month available, with 44.2 million Americans receiving benefits, according a new report from the U.S. Department of Agriculture. (See a sortable breakdown of the data here.)

The food stamp program ballooned during the recession as workers lost their jobs or saw their hours and income reduced.

Click here to see what percentage of people in your state are receiving food stamps. (My state, the very liberal Michigan, has 19.6% of its population receiving food stamps)

Music Vids: Peter Gunn Theme

Found this great traditional version of the Peter Gunn theme by Jeff Beck:

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And this rocking version by Gary Hoey

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Some facts about the Peter Gunn theme via (ironically) songfacts.com:

  • This was originally written by Henry Mancini for the TV series Peter Gunn. The show ran from 1958-1961, and used this song performed by Henry Mancini And His Orchestra as its theme. Many artists have since interpreted the theme, with Eddy’s version being the most famous.
  • Eddy produced his signature ‘twang’ sound by means of a Gretsch 6120 with a Bigsby vibrato tailpiece through a 100-watt amp-and a steel water tank for reverb.
  • In 1986 the British techno-pop trio The Art Of Noise covered this with Eddy guesting on guitar. It was a Top 10 hit around the world, peaking at #8 in the UK and won the 1986 Grammy Award for Best Rock Instrumental Performance. It also gave Eddy the distinction of being the only instrumentalist to have had Top 10 hit singles in 4 different decades in the UK.
  • Eddy recalled to Mojo magazine November 2010 why he decided to cover this song: “We were doing the second album, Especially For You. (Saxophonist) Steve Douglas said, ‘Duane, I learnt Peter Gunn last night.’ I said, ‘Well, that’s nice.’ He thought it’d just be good as an album cut but I didn’t think so. So we forgot about it and we got 11 or 12 songs done. Lee and me were sitting there discussing what we could do and Steve wandered over and said, ‘We could do Peter Gunn.’ I thought, ‘What the heck! It’s only an album cut.’ So we figured out the intro, then the riff, and we cut it. It became a single because somebody in Australia in the record company took it from the album and it got to #3. Somebody in England noticed that so they released it as a single. It got to the top of the charts. Finally, Jamie noticed this and said, ‘Maybe we should make this a single in the US.’ So that’s how Peter Gunn came to be.”

Smug Liberals Today: $4.00 Gas Not That Big A Deal

If you roll back the clock to August 2008 and liberals we using $4.00 /gal. gas prices as short hand for really expensive:

House Speaker Andy Dillon, D-Redford Township, noted that the House package evolved from hours of talks among all stakeholders, but now he feels as if he’s starting from scratch in talks with Senate leadership — including listening to a demand for a huge unspecified tax cut.

“What they are ignoring is the cost of doing nothing,” Dillon said, adding that Michiganders have become more attentive to the state energy debate as gasoline costs have risen. “If we don’t plan, we’ll be at $4-a-gallon electricity.

Of course, Democrat Dillon was pushing for legislation mandating the fallacy of green energy, but you get the point.

Fast forward to today, and we get a smug column from Tom Walsh @ the very liberal Detroit Free Press telling us that, hey, don’t panic when gas is above $4.00 / gal.

But me? Personally, I’m opting for the no-panic button. Three reasons:

1.) Oil prices are peaking now and will head back down soon. Happens every time after a big price spike.

2.) I bought a hybrid.

3.) Don’t obsess over stuff you can’t control or predict.

Mark Perry, economics professor at University of Michigan-Flint and a visiting scholar at the American Enterprise Institute, says the U.S. Energy Department projects that gas prices will level off and fall to $3.60 by the end of 2012.

According to Tom Walsh, don’t sweat it guys, there is nothing us little people can do about gas prices so suck it up. Besides, according to Obama we will be Brazil’s best customer when it comes the purchase of oil.

Mr. Walsh continues his column pointing out he is greener than thou because he purchased a hybrid. And due to his superior vehicle purchase he is more insulated to fuel price swings than the average person:

Of course, we did pay a premium for the hybrid version — but even if the total operating cost comparison was a wash, I’d rather pay more money to Ford and its U.S. workers than pay it to Saudi sheikhs for extra fuel.

Ohhh the ‘dangerous’ foreign oil argument. I’m pretty sure there are few oil rich Saudi sheikhs running around Canada and Mexico. You know, where we in the United States get the majority of our foreign oil.

When you think about it, there are major oil drilling going on just across our northern and southern borders and we are putting the breaks on developing our own real energy resources.

Crude Oil Imports (Top 15 Countries)
(Thousand Barrels per Day)
Country Feb-11 Jan-11 YTD 2011 Feb-10 YTD 2010

CANADA 2,193 2,149 2,170 1,897 1,889
SAUDI ARABIA 1,114 1,099 1,106 881 922
MEXICO 998 1,216 1,112 996 1,015
NIGERIA 948 968 958 896 948
VENEZUELA 878 951 916 913 868
ANGOLA 357 294 323 312 289
IRAQ 263 470 372 540 522
ECUADOR 242 178 209 145 182
BRAZIL 175 259 219 192 233
COLOMBIA 175 303 242 371 330
ALGERIA 138 378 264 282 306
KUWAIT 118 147 133 228 143
RUSSIA 97 105 101 214 174
EQUATORIAL GUINEA 52 32 41 0 28
CHAD 51 55 53 0 24