New Drilling And Pipelines Will Not Solve High Gas Prices

The Republicans seem to think they have a hot issue with rising gasoline prices, and for the uninformed masses out there, they may be right. The fact is every time they cry "drill baby drill!", push for the Keystone Pipeline, rail for access to the vast tracts of government land that is just waiting to be tapped, putting us on a path toward energy independence, the promises of $2.50 a gallon gas, the pledge never to bow again to a Saudi King, or the President's ineffective energy policy, just remember its all a lot of crap!


Of the 91.5 Million acres of land, on and offshore, currently leased for crude oil and gas production by Big Oil in this country, 68 Million acres of that land is currently NOT PRODUCING. Well most people would think, that doesn't make any sense? Ah, but if you're Big Oil, it makes perfect sense. Why wouldn't they utilize all this product rich territory? Because it would flood the market, and gas and oil prices would tumble. The Oil Industry, for decades now, loves to make everybody think the next energy crisis is right around the corner, or they tout huge reserves just waiting to be tapped, but government regulations are holding up the works. It is all smoke and mirrors, perpetuated by a Republican party it holds in its back pocket. Big Oil doesn't care if you pay 4,5,6 dollars a gallon for gasoline, because it makes them rich. Add a President that wants to take away their government subsides because oil giants like Exxon-Mobil made over 23 Billion dollars just last quarter. In an election year, or any year for that fact, who gets blamed for high gas prices? It's not the oil companies, it,s the President. If your an oil company dealing with a hostile President, what better way to hurt him, and the economy than rising gasoline prices. Add all the geo-political turmoil in the Middle East, and you have the perfect recipe to hurt the one man who doesn't have your interests at heart.

Ten days ago a House subcommittee held a hearing on "The American Energy Initiative" Wednesday morning that focused solely on rising pump prices. Seventy members of Congress signed a letter this week to regulators at the Commodity Futures Trading Commission (CFTC), urging immediate action on oil speculation by enacting "strong position limits" and to "utilize all authorities available to…make sure that the price of oil and gasoline reflects the fundamentals of supply and demand."

The CFTC was given authority in the Dodd-Frank Wall Street Reform and Consumer Protection Act to impose position caps on oil traders beginning in January 2011. These limits have not yet been implemented by the CFTC. In an interview Wednesday with The Daily Ticker, Sen. Bernie Sanders (I-VT) says the CFTC doesn't "have the will" to enact these limits and "needs to obey the law."

"What we need to do is…limit the amount of oil any one company can control on the oil futures market," says Sanders, who has long advocated limits on speculation. "The function of these speculators is not to use oil but to make profits from speculation, drive prices up and sell."
This is not the first time oil speculators have been blamed for higher energy prices. In 2008 U.S. oil prices skyrocketed to $145 per barrel and gasoline prices averaged well above $4 per gallon. There were calls to increase domestic offshore drilling and legislation was proposed that would have required buyers of oil to physically own and store the oil barrels. Then the 2008 financial crisis hit causing oil and gasoline prices to plummet.

Blaming the speculators may seem like scapegoating to some (namely, oil traders) but speculators control more than 80 percent of the energy futures market, up from 30 percent a decade ago, and there is mounting evidence that speculation contributes to higher prices:
•At a Senate hearing last June, Rex Tillerson, the CEO of ExxonMobil, said speculation was driving up the price of a barrel of oil by as much as 40 percent.
•A study conducted by the nonpartisan consumer advocacy group Consumer Federation of America found that speculation caused the average American household to spend an additional $600 on gasoline expenditures in 2011. Moreover, the report concluded that excessive speculation (which the organization estimated added about $30 per barrel to the cost of oil in 2011) drained the U.S. economy of more than $200 billion in consumer spending in 2011.
•The St. Louis Federal Reserve has also recommended that the CFTC do more to prevent oil speculators from driving up the price of oil. Fed officials studied the effect of oil traders on the price oil over five years and determined that "speculation contributed to around 15 percent to oil prices increases."
•CFTC Chair Gary Gensler declared last year that "huge inflows of speculative money create a self-fulfilling prophecy that drives up commodity prices." Rising gasoline prices are a huge pocketbook issue for many Americans, a reason that stands alone for politicians to focus on the role of speculators.



My Thanks to Morgan Korn at Yahoo Finance for the information regarding the CFTC and Wall Street Speculation. - MJP Bluefieldstars.

What Is Mitt Romney Selling?

Former Governor Mitt Romney is the presumed front runner for the Republican nomination, but what are his plans for America? You would do better to find out all the things he believes President Obama has done wrong, rather than find his vision for what he would bring to the White House. Whatever that vision may be, it goes without saying his personal appeal is pivotal to explaining that vision.

So first, lets look at Romney the man. He has a net worth of 250 Million dollars. He has 5 homes scattered across the country. He is a Mormon, or if you prefer, member of the Church of Jesus Christ of Latter Day Saints, many media people refer to this as (LDS). Half way through the primary season, he has spent 30 Million dollars on negative campaign ads attacking his opponents, with mixed results. He has outspent his rivals on a massive scale, proving his money can't buy him love. He has a major problem in the south, and among evangelical social conservatives in general. The 2 groups where he has consistently done well are, those who make over 100 Thousand dollars a year, and moderates who do not agree with the Tea Party. He is backed by the Republican establishment, and known in most circles as a fiscal conservative. He has a daunting reputation as a flip flopper, who often takes the position that is politically expedient for the moment.

Personally, he is uncharismatic, almost robotic on the public stage. He gives the impression that his messages are forced, which makes him come off as uncomfortable in his own skin. He is probably one of the worst panderers I have ever seen on the campaign trail. Try as he might, he has failed to connect with regular working class people. For example, you ask him about NASCAR or professional football, and he'll tell you he knows some owners. He makes no apology for his wealth, but hopelessly emphasizes it every time he opens his mouth. He is a 1% candidate, desperate to appeal to the other 99%, and is failing miserably.

So what does HE stand for? Well the major things I found were this. Repeal Obamacare, or as it's known in Washington, The Affordable Health Care Act of 2010. This would allow insurance companies to drop you if you reach a predetermined monetary limit, like a million dollars. It would allow insurance companies to deny you coverage for pre-existing conditions. He would prevent children up to 26 years of age from staying on their parents insurance. He would prevent seniors from getting assistance with their prescription drugs, in what is know as the donut hole. This is just to name a few. Next, cut taxes on the rich, and raise them on the poor.


Third, he would increase defense spending. We currently outspend the next closest 9 nations and then some, COMBINED. See the chart below to see where we rank in the world in defense spending.


So if you cut taxes on the rich, and increase defense spending, want to balance the budget and cut the deficit, where is the money going to come from? Well, he endorses the Ryan plan, which would end Medicare and Social Security as we know it. He also favors overturning Dodd-Frank. This is the bill designed to prevent another Wall Street meltdown. So to sum up, tax breaks for the rich, no regulation for Wall Street, Scrap Health Care reform, destroy Medicare and Social Security. WHERE DO I SIGN! Add in the Republican wars on women's rights and voting rights, and you have quite a platform there. Do they live in 2012, or 1912? In any event, watching Romney struggle to be the standard bearer for all this good news borders on the insane. This is what they're fighting to bring to America in 2012? It's like crashing your car before the race. Sadly, there are a lot of people who embrace this message even if it runs contrary to their own personal interests, but after all that is what Republicans do best, that and trying to scare the crap out of you. Republicans always have a boogie man just around the corner, but don't look for him, he's not there.

No Southern Comfort For Romney

Last nights 2 primary fights in the heart of Dixie, once again emphasized Romney's weakness with social conservatives. In Mississippi, where 80% of Republican voters identified themselves as evangelicals, and Alabama, where 74% did the same, in this true test of the bumpkin belt electorate, it was Rick Santorum who emerged as the victor in both contests. Once again pulling out the wins, despite being outspent by Romney's big money machine. In keeping with his streak of island victories, Romney did win the caucuses in Hawaii and American Samoa.


So Father Rick's crusade toward the presidential nomination continues, as he refuses to go quietly into that good night. As for Newt Gingrich, who declared these 2 states as "must wins", his ego once again will not allow him to see the big picture. While his "southern strategy" imploded last night, Gingrich again vowed to fight on. I think despite his great appeal in the south, people there are beginning to realize he simply can't win, no matter how HE spins it. However, while taking very close silvers in both contests last night, he most likely will fade into the ranks of the marginal candidate, only to cultivate 3rd place finishes from here on out. He can continue his delusion of grandeur all he wants, the fact is the final nail went in his coffin last night. Despite his refusal to leave the race, look for Santorum to pick up a bigger slice of what would normally go to Gingrich. A scenario that looks like, for the moment, is going to be the best Santorum can manage in turning this into a 2 man race.

The next state, Missouri will hold its caucus Saturday. Actual delegates will be awarded this time, after February's "beauty contest", I see no reason for the state not to remain in Father Rick's column. Next will be Puerto Rico on Sunday, followed closely by Illinois on Tuesday March 20th. Like Florida, Michigan, and Ohio before it, this is another must win for the "front runner" Romney. Latest polling has Romney with only a 4 point lead, which with a week to go, should give little comfort to the former Massachusetts Governor.

For those of us who follow politics, this is a political junkies wet dream. If only Gingrich would get out of the way, and let Santorum and Romney go head to head. In a 2 man race, Mitt Romney would have a serious problem on his hands, and he knows it. As hard as he tries to push Santorum out of the picture, like a bad dream, with no money, he keeps winning. The fact of the matter is, the evangelical social conservative base is not going to just settle this primary season. If Romney is going to be the inevitable nominee, social conservatives are going to make him pay for every delegate he needs to capture that prize. They don't like him, he doesn't connect with them, and if the establishment is going to try and force a moderate like Romney down their throats, they're going to make him pay for it. End result, a bloodied nominee in Tampa, and more fodder for the President come the general election. The longer this fight goes on, the worse it is for Romney, and I don't see him being able to put this away anytime soon. So the struggle continues, and it the words of Montgomery Burns all I can say is "Excellent".

Enough Already In Afghanistan

I wanted to take a break from election politics to weigh in on the recent turmoil in Afghanistan. Yesterday, at about 3am local time, an unidentified 38 year old United States Marine, walked about a mile to the nearest Afghan town, and killed 16 people. Among the total were 9 children, and 3 women. The marine knocked on door after door at three houses, and then methodically killed the inhabitants of each home. When he was finished, he walked back to his base and went back to business as usual. The marine a staff sergeant based in Fort Lewis Washington State, has 2 children of his own. He had previously served 3 tours in Iraq, this was his first tour in Afghanistan. It is believed this marine may have been suffering from (PTSD) Post Traumatic Stress Disorder.


A week earlier, 6 U.S. Marines were killed by rioting across Afghanistan, when U.S. forces mistakenly burned Korans. Four of those marines were killed by Afghan Security Forces, the same forces we are supposed to be training. The rioting was sparked by the Taliban, who is still very much alive and well in the country. As for this latest incident they claimed, it would "take revenge from the invaders and the savage murderers for every single martyr." further calling our troops, "sick-minded American savages". Afghan President Hamid Karzai called it "an assassination, one that cannot be forgiven." This from a government leader who has been proven illegitimate, mentally unstable, and, plagued by corruption on a massive scale.

So my next question is, What are we still doing here? The country is no better than it was 10 years ago when we started this war. While meeting with initial successes early in the campaign, the years that followed have proved to be nothing but a giant quagmire. Can someone tell me what we are trying to accomplish here? To add insult to injury we now have cries from the Right, to engage in wars in Syria and Iran. Haven't we learned anything from 10 years and 2 wars? We have troops who have been put on multiple deployments in the region, like the staff sergeant in question, and our forces are quite literally burning out. Things like PTSD and suicides, are rampant in both active, and inactive troops. So again I ask, what are we trying to accomplish there?, and the bigger question, what have we won for our 400 Billion dollars and counting, besides the 17,000 brave servicemen and women that have been killed or wounded?

We prop up a corrupt government, have paid the ultimate sacrifice in both blood and treasure, and our people are now being killed by the very forces we are training to take over the country when we leave. The Taliban has had a resurgence in not only Afghanistan, but Pakistan, yet we remain? How many more of our brave armed forces do we have to lose? How many more staff sergeants have to snap? How many more billions of dollars must we spend? All questions no one has the answers to, but I think it's time, we at the very least, need to start asking the questions, don't you?