More on Gas Prices

Gas prices are the top media topic. President Obama has
been against carbon-based energy and has used taxpayer money
to make alternative fuels cheaper. He has prohibited
drilling for oil and has delayed the permits for drilling.
The United States has coal, oil and natural gas supplies
which will last for centuries, yet we import about 9M
barrels/day at about $110/barrel. Much of that supply comes
from Canada and Mexico, but much comes from people who
consider us infidels worthy of death.
But geopolitical issues and supply interruptions and
global demand are only part of the “high” gas prices.
The dollar has been devalued more than 95% since 1913 when
the Federal Reserve was born. Gas at $4/gal is only 18
cents/gal in 1913 dollars. The Federal government talks
about keeping the dollar strong, but it is disadvantageous
for it to do so. A weaker dollar makes it easier to repay
debt and also makes U.S. exports cheaper. It is a tax which
hurts the poor and elderly the most.
What about price gouging and obscene profits by big oil
corporations? The profit margins* of Exxon and Chevron
are 8.89% and 10.03% respectively. The profit margins of
Microsoft and IBM are 30.84% and 14.85% respectively. The
profit margins of JP Morgan and Citi are 21.91% and 17.27%
respectively. The profit margins of AT&T and Pfizer are
15.98% and 12.18% respectively.
Also institutions (mutual and pension funds ) hold 49.3%
and 63.2% of Exxon and Chevron. The stocks are therefore
indirectly held by millions of Americans. Seizing their
profits for more redistribution schemes will be as popular
as delaying BP's dividends to U.K. pensioners after the
tragic accident in the Gulf of Mexico.
The subsidy that taxpayers give to big oil (depletion
allowance) is similar to the depreciation allowance given
to manufacturers, businesses and realtors/landlords.
The United States has 5% of the world's population but
25% of the world's energy use each day. If higher gas
prices discourage use and encourage efficiency, then the
result will be better for many reasons – particularly our
soaring debt and national security.

*Data source: Yahoo Finance, 31 Dec 2010

Inflation Tax

If I bought an item for $1 in 1913, the same item
would cost $22.35 in 2011.

An item costing $1 in 2011 would cost only $0.04
in 1913.

Gas prices are not "outrageous", the dollar has been
devalued 95.5%. A gallon of gas costing $3.60 in 2011
would cost only $0.16 in 1913.

http://www.usinflationcalculator.com/

And The Oscar Goes To...

The Oscar for the most treasonous performance in an elected
role goes jointly to the Congress and the POTUS.
Bill Clinton has a problem with the Truth, so what were we
thinking when he claimed “the era of big government is over?”
Corruption loves big government. It is easier to steal millions
when the total budget is in trillions!
How can conservatives shut down the government which does
such good things for us? Obama's reason for his historic
spending was “I won!” The reason for the House of
Representatives requiring historic spending cuts should be
“We won!”
One of the first things that the House of Representatives
did was read the Constitution on the House floor. HR 1 was
passed to fund the government for FY2011. The spending cuts
were small in comparison to the deficit. The Senate and the
POTUS have treated HR 1 as a joke. Many in government think
that the Constitution is only a suggestion which can be
ignored when they wish to. The enumerated powers are an
outdated list. They speak of America as a democracy rather
than a republic. Many Americans are clueless about the
difference.
The problem with the “nanny state” giving out government
suckers every time someone – legal or illegal – cries, is that
everyone is taught to work less and wait for their sucker.
America became great because of our Constitution and
free-market capitalism. We will fail as a nation when we forget
that.

Patrick Henry - 23 March 1775

Suffer not yourselves to be betrayed with a kiss. Ask
yourselves how this gracious reception of our petition
comports with those warlike preparations which cover our
waters and darken our land. Are fleets and armies necessary
to a work of love and reconciliation? Have we shown
ourselves so unwilling to be reconciled that force must be
called in to win back our love? Let us not deceive ourselves,
sir. These are the implements of war and subjugation; the
last arguments to which kings resort.
Is life so dear, or peace so sweet, as to be purchased at the
price of chains and slavery? Forbid it, Almighty God! I know
not what course others may take; but as for me, give me
liberty or give me death!

Energy Use in the United States

Source Billion BTUs %
Crude Oil 8,050,680 36.7256%
Natural Gas 5,333,000 24.3281%
Coal 4,510,900 20.5778%
Nuclear 1,905,900 8.6943%
Biomass 886,400 4.0436%
Hydroelectric 612,300 2.7932%
Biofuels 352,700 1.6089%
Wind 159,100 0.7258%
Geothermal 85,200 0.3887%
Solar 25,000 0.1140%
Total 21,921,180 100.00%

Note that "carbon-based" use is 81.63%
Biomas through Solar is only 9.67%

Is a 1960s "space-age committment" to alternative energy - when
it is more expensive and risky and at a time of debt crisis - really
rational? We should instead open all sources of domestic energy
and stabilize and reduce our trade deficits!

Devaluing Money

I recently won a $1000 coin on an auction site. The $ is
pesos, not dollars (USD). As a result of hyperinflation in
Mexico, 1000 “old” pesos (MXP) became 1 “new” peso (MXN) in
1993. A savings of $1,000,000 (MXP) became only $1,000 (MXN).
Mexico was given loans and guarantees of $50B (USD) –
principally by the Clinton administration – in order to
survive the financial crisis.
Nations get money by taxing, by borrowing and/or by
printing it. If you are a debtor nation and unable to pay
your debt, then you can devalue the currency in order to make
it possible to pay the debt. This is done by spending more
than your revenues and creating – by borrowing or printing –
the difference. The effect is called inflation or monetizing
the debt.
To boil a frog, put the frog in cool water and gradually
raise the temperature until the frog has boiled to death.
What we (frogs) see is that an item costing $1000 (USD) in
1913 would cost over $22,354 (USD) in 2011. This works
exactly like a tax. The government makes it worse because,
if you sell the item, you will be taxed on the $21,354
“profit.”
Our coins no longer contain any gold or silver, and our
paper money is only as good as the world's faith in it.
If the world loses that faith, then our dollar becomes as
worthless as a Zimbabwe dollar!

Conservatives & Liberals

A young woman was about to finish her first year of college.
Like so many others her age, she considered herself to be a
very liberal Democrat, and among other liberal ideals, was
very much in favor of higher taxes to support more government
programs, in other words redistribution of wealth.

She was deeply ashamed that her father was a rather staunch
Republican, a feeling she openly expressed. Based on the
lectures that she had participated in, and the occasional
chat with a professor, she felt that her father had for
years harbored an evil, selfish desire to keep what he
thought should be his.

One day she was challenging her father on his opposition
to higher taxes on the rich and the need for more government
programs. The self-professed objectivity proclaimed by her
professors had to be the truth and she indicated so to her
father. He responded by asking how she was doing in school.

Taken aback, she answered rather haughtily that she had a
4.0 GPA, and let him know that it was tough to maintain,
insisting that she was taking a very difficult course load
and was constantly studying, which left her no time to go
out and party like other people she knew. She didn't even
have time for a boyfriend, and didn't really have many
college friends, because she spent all her time studying.

Her father listened and then asked , 'How is your friend
Audrey doing?' She replied, 'Audrey is barely getting by.
All she takes are easy classes, she never studies, and she
barely has a 2.0 GPA. She is so popular on campus; college
for her is a blast. She's always invited to all the parties
and lots of times she doesn't even show up for classes
because she's too hung over.'

Her wise father asked his daughter, 'Why don't you go to
the Dean's office and ask him to deduct 1.0 off your GPA and
give it to your friend who only has a 2.0. That way you will
both have a 3.0 GPA, and certainly that would be a fair and
equal distribution of GPA.' The daughter, visibly shocked by
her father's suggestion, angrily fired back, 'That's a crazy
idea, how would that be fair! I've worked really hard for my
grades! I've invested a lot of time, and a lot of hard work!
Audrey has done next to nothing toward her degree. She played
while I worked my tail off!'

The father slowly smiled, winked and said gently, 'Welcome to
the Republican party.' If anyone has a better explanation of
the difference between Republican and Democrat I'm all ears.

If you ever wondered what side of the fence you sit on, this
is a great test!

If a conservative doesn't like guns, he doesn't buy one.
If a liberal doesn't like guns, he wants all guns outlawed.

If a conservative is a vegetarian, he doesn't eat meat..
If a liberal is a vegetarian, he wants all meat products
banned for everyone.

If a conservative is homosexual, he quietly leads his life.
If a liberal is homosexual, he demands legislated respect.

If a conservative is down-and-out, he thinks about how to
better his situation.
A liberal wonders who is going to take care of him.

If a conservative doesn't like a talk show host, he switches
channels.
Liberals demand that those they don't like be shut down.

If a conservative is a non-believer, he doesn't go to church.
A liberal non-believer wants any mention of God and religion
silenced - unless it's a foreign religion, of course!