Stop this Madness Senator McCain

Charlie Gibson and George Stephanopolous tonight, basically called John McCain the most powerful man in the world. Democrats have admitted that if John McCain opposes this bailout, it is dead. Republicans will follow McCain's lead. Democrats will not have enough votes to pass it.

It will pit, John McCain fighting against President Bush. BO will have no more recourse to claim it is 'four more years' of Bush by electing McCain. There is great risk in this, so here is my recommendation to Sen. McCain (As if...):

On Friday at the debate, he must come out, unapologetically, against any bailout funded by the taxpayers. Period. He must turn to the cameras and tell the American people that companies will go under, people will lose jobs, and the stock market will correct. It may last an extended period of time, but he will not put the government in the place of American values and principles. It is time for the straight talk express to start talking straight. GWB is wrong on this - and McCain is just the man to tell us about it. No waffling, no stuttering, just leadership.

It is presidential. It is leadership. It is American. It is what I hope John McCain is.

Hugo Chavez

Needless to say, I need to take a political break. Because at this point, a vote for nationalization of our finance companies might as well be a vote for Venezuelan "President"/Dictator Hugo Chavez. Next will be the automakers, and then the hospitals and healthcare... and so Marxism and socialism has won. No one is talking about the "bad things" that will happen if nothing is done. Why not let bad businesses fail. Have we become a nation of cotton-headed ninny muggins?

I am flabbergasted. I cannot believe the words coming out of the mouths of people who I thought were level headed decision makers. If the dow jones were to drop 4 THOUSAND points next week, what would that mean to me? I am not smart enough to know, but no one is explaining that. The President is fear-mongering and I don't like it. We have given up on democracy and capitalism, in the short span of two weeks.

Democracy: I have not cast a single vote to authorize my government representatives to buy a single private entity, or spend my daughter's daughter's tax dollars today.

Capitalism: Welcome to America, Prime Minister Putin and President Chavez. Because that is what we have become. This is redistribution of wealth. Business without risk of loss is not business, it is government.

Is Trickle Down A Myth?

Here is my layman's definition of trickle down economics.

Contrary to popular belief, corporations do not pay taxes. Any and every tax levied against a corporation, is passed on to the consumer. For instance, when Wal-mart pays for all those tractor trailers to move merchandise, they pay sales tax from where ever they purchase it from. That sales tax is then embedded into every Twinkie and CD. The 15% of federal payroll taxes for the driver of that truck, receiving department of every store, stock clerk, and cashier... is also embedded in the product. They pass on the cost of insurance, lawyers, and every commercial they make... of course they are going to pass on the taxes as well.

Therefore, if you tax energy companies and all other businesses, we just raise taxes on the poor and middle class in America. This is what is meant by saying the "tax burden" will go up on all Americans. So eliminating taxes on 95% of Americans and taxing the rich and business is not only 'income redistribution' but it is a farce. We end up paying every penny of that tax... and the poorest of Americans that depend on Walmart for food and gas to get to work, they pay for it.

Now back to trickle-down economics. If there is no such thing as trickle down, then giant conglomerates that fail like Fanny, Freddie, Lehman and AIG would not matter to 'middle America'. The ripples of their failures would not 'trickle down' to us, just as cost savings through low taxes, would never trickle down to us. So the only people who should be concerned with these recent failures are those who espouse the trickle down belief.

All others are still living in bliss and shouldn't be causing a big stink about it.

Party like it's 1979! Errr... or something.

The point here is that things are not awesome, but we are not near the Great Depression. Let's just have a little perspective. Things could get worse, but we aren't there yet. Let's get back to the 'bad ole days' of 79 and 80 before we start going back to the 20s.

1979
Unemployment: 6.0%

Real GDP Growth: Q1: .78% Q2: .38% Q3: 2.88% Q4: 1.18%

Inflation: 10.75%

Home Mortgage Rates (prime): 11.5%-15.5% (with a peak of 21.5% in Dec 1980)

2008
Unemployment: 6.1% (in August - the peak to date)

Read GDP Growth (to date): Q1: .87% Q2: 3.24%

Inflation: Peak of 5.85% in August, Currently at or near 5%

Home Mortgage Rates (prime): 6.5% - 5%

I was afraid of this...

The New York Post has an interesting story regarding Obama's trip to Iraq. I will be interested to hear the Obama camp respond to this. If it is true, and Obama denies it, if he wins his White House bid things could get really ugly in US/Iraqi relations. If Obama is as popular 'around the world' as we hear, why would they make this up? Here are some excerpts from the article:

" WHILE campaigning in public for a speedy withdrawal of US troops from Iraq, Sen. Barack Obama has tried in private to persuade Iraqi leaders to delay an agreement on a draw-down of the American military presence."

...

""He asked why we were not prepared to delay an agreement until after the US elections and the formation of a new administration in Washington," Zebari said in an interview.

Obama insisted that Congress should be involved in negotiations on the status of US troops - and that it was in the interests of both sides not to have an agreement negotiated by the Bush administration in its "state of weakness and political confusion.""

...

"Though Obama claims the US presence is "illegal," he suddenly remembered that Americans troops were in Iraq within the legal framework of a UN mandate. His advice was that, rather than reach an accord with the "weakened Bush administration," Iraq should seek an extension of the UN mandate."

I have always feared something like this was happening behind closed doors, in the secret halls of democrat strategy... But only time will tell if this is a true and correct story.

It's the economy... stupid

While no one can argue that there are people out of work, homes in foreclosure, and people having a hard time filling their gas tanks, there is a bigger picture. Our country is great because it is ruled by majority, not loud minorities.

We have to ask ourselves, as a pluralistic nation: to what extent do we inhibit 94% of our population to help 6%. Especially when there are no clear indicators as to how much of the 6% is fraud. To be honest, faith-based organizations and local governments should be helping the 6%, not our central government. I encourage you to read the linked article below. But as you are reading it, think about what is the 'ideal' level of unemployment, home foreclosures, or national savings rates. If you think anything above 0% for the first two, you are acknowledging that there will ALWAYS be someone out of work and losing a home - and the government shouldn't do anything about it... (and that, my friends, is ok... I promise, because zero unemployment is communist, and we know how that works out!)

So read this Washington Post article, linked here.

Cheers, Jason

Palin vs. Reid

This letter was from a timid, former beauty queen (with a rebellious husband and daughter) of a small insignificant state, to the Senate Majority Leader. I guess if the fog of the media can prevent us from looking at her positions and her qualities, they will have won. If anything is gleaned from this, Gov. Sarah Palin has a deep understanding of national security.

Let's never forget that even $100/barrel is expensive. When I arrived in Colorado, I was paying just under $1 per gallon of gas. With inflation, gas prices should be somewhere under $1.60 per gallon (on the high end). "All of the above" is the only real energy answer, and it starts with drilling at home. If Great Britain, Canada, and Australia were oil producers, we would not be in this mess. Free trade is great, but it's not free if the citizens in the oil producing nations are not - there is a correlation.

-jsa

June 23, 2008
The Honorable Harry Reid
Senate Majority Leader
United States Senate
528 Hart Senate Office Building .
Washington, DC 20510

Dear Senate Majority Leader Reid:

In previous correspondence to members of Congress, I have urged the enactment of legislation to authorize development of oil and natural gas in a small portion of the coastal plain of the Arctic National Wildlife Refuge (ANWR). I will not repeat the arguments in favor of this legislation but will briefly focus on a few key points that have become even more evident since my last correspondence.

That letter began, "With the price of oil hovering around $100 per barrel". Now, just a few months later, the price is close to $140 per barrel, and there is no end in sight. What will it take for Congress to enact comprehensive energy policy that includes increased domestic production of oil and gas, renewable and alternative energy, and conservation? It seems to us outside of the Capitol Beltway that Virtually every effort to accomplish this is met with criticism and failure. In my opinion, the debate about energy policy is no longer theoretical and abstract. Our failure to enact an energy policy is having real consequences for every American in their daily lives and has begun to affect America's place in the world.

In the last few days, proposals have been tabled to permit oil exploration and development in the 80 percent of the federal Outer Continental Shelf (OCS) which is off limits to such activity. I strongly support oes development in Alaska and elsewhere as a necessary component of a sound energy strategy. However, it makes no sense to consider the oes and to ignore the possibility of exploration and development in highly perspective upland areas, including the coastal plain of ANWR-the most promising unexplored petroleum province in North America.

With appropriate stipulations, oil exploration and development in the OCS can be conducted in a safe manner. Uplands development can be accomplished even more safely. Advanced technologies, such as directional drilling and the re-injection of oil wastes, ensure that the footprint of development would be less than 2,000 acres (approximately one-quarter of the size of Dulles Airport).

In advocating for oil development in ANWR, I have never guaranteed that this new domestic production would immediately reduce the price of oil. However, incremental production from the coastal plain should help reduce price volatility in the U.S. Additionally, ANWR development would send a strong message to oil speculators and producing countries that the United States is serious about addressing its energy problem.

Yet, there is an even more important point. The location and quantity of oil production are changing world geopolitics. Countries that produce significant quantities of oil and natural gas are gaining in power and prestige. Several of these countries have objectives and value systems that are antithetical to U.S. interests. We are becoming increasingly dependent on these insecure sources to our long-term detriment. Further, it has become clear that U.S. petrodollars are financing activities that are harmful to America and to our economic and military interests around the world.

Much attention has been focused on the importance of crude oil and gasoline in fueling our nation's transportation system. This need for petroleum will not end anytime soon despite efforts to develop new technologies and to diversify our transportation system into mass transit and more fuel efficient automobiles.

Meanwhile, the true significance to the nation's economy of products refined from petroleum is becoming increasingly apparent. These products undergird our entire society and economy and provide precious jobs and revenue. The soaring prices of chemicals, plastics, fertilizer, and other products - and the loss of jobs - graphically illustrate this point. We must recognize that it will be many years, if ever, before we discover alternatives to the petroleum-based products that every American uses in our daily lives.

If we don't move now to enact an energy policy that includes more oil and gas production from domestic sources, including ANWR and the federal OCS, we may look back someday and realize that we failed to perceive a critical crossroad in the history of this nation. I don't think it's overly dramatic to say that this nation's future and the quality of life for every American are dependent on the decisions you make or don't make in the next few months.
Thank you for considering my views.

Sincerely,
Sarah Palin
Governor

cc: President George Bush
Vice President Richard Cheney
The Honorable Dirk Kempthorne, Secretary, U.S. Department of the Interior
The Honorable Samuel Bodman, Secretary, U.S. Department of Energy
The Honorable Ted Stevens, Alaska Congressional Delegation
The Honorable Lisa Murkowski, Alaska Congressional Delegation
The Honorable Don Young, Alaska Congressional Delegation

Economic Policies - What's the Difference?

People want to know the difference between Sen Obama's and Sen McCain's economic policies. Well, we have case studies to look at that gives us insight into the future...

Click on the link for a great article from the Wall Street Journal. Here's an excerpt of it:

The rewards for success were huge. Texas gained 1.7 million net new jobs, Florida gained 1.4 million and Arizona gained 600,000. While the U.S. average job growth percentage was 9.9%, Texas, Florida and Arizona had job growth of 18.5%, 21.4% and 28.9%, respectively.

Remarkably, a third of all the jobs in the U.S. in the last 10 years were created in these three states. While the population of the three highest-performing states grew twice as fast as the national average, per-capita real income still grew by $6,563 or 21.4% in Texas, Florida and Arizona. That's a $26,252 increase for a typical family of four.

By comparison, Illinois gained only 122,000 jobs, Ohio lost 62,900 and Michigan lost 318,000. Population growth in Michigan, Ohio and Illinois was only 4.2%, a third the national average, and real income per capita rose by only $3,466, just 58% of the national average. Workers in the three least successful states had to contend with a quarter-million fewer jobs rather than taking their pick of the 3.7 million new jobs that were available in the three fastest-growing states.

Energy is...

Energy is our economy:

If you talk about our energy prices and alternate fuel sources, you are talking about our economy. Drilling at home adds jobs, reduces the cost of fuel, and gives every person more disposable income. If we are building windmills, we are adding jobs, researching technology, reducing prices, and strengthening our economy. If we are building nuclear power plants, we are adding jobs, lowering demand for oil and as such, reducing the price of oil. As the price of oil decreases, so does the price of food, gasoline, and just about anything else you can think of. There is petroleum in the plastic of a bottle of water and soda. Not to mention the machinery used to make the bottles, and the trucks transporting the bottles (all for a bottle of water). We use oil to transport our food, and we use oil to process our food. We use oil to make pasta from grain, and we use oil to irrigate our farm lands with fertilizer made with machinery that requires oil. Oil is an embedded cost in everything you buy. They don't use sailboats to transfer coffee from Colombia to each Starbucks. If you have an understanding about energy, you understand our economy.

Energy is our national security and foreign relations:

If you talk about our energy prices and alternate fuel sources, you are talking about our national security and foreign relations. Everyone has heard that we send $700 million to people 'that don't like us very much' per year by purchasing foreign oil. The truth is we get a lot of oil from Canada as well. But the overwhelming amount of oil we get from the Middle East, Russia, and Venezuela makes that claim more than accurate. OPEC will not let the price of a barrel of oil go below $100 ever again. Just today they cut production as it was dropping to $104. Supply and demand should dictate prices, not dictators themselves. The USA consumes 25% of the world's oil. If we increase the amount of domestic oil, nuclear/solar/coal/wind power we use, we reduce demand and lower the price of oil and reduce Islamic Fascism's budget. If the United States demanded less of the world's energy (because it made its own), emerging economies worldwide would not be slowed by the over indulgence of American consumerism due to high prices from high demand. If it were not for oil, Russia would not have invaded Georgia with such determination and resolve. If you have an understanding about energy, you understand national security and foreign relations.

Energy is education:

If you talk about our energy prices and alternate fuel sources, you are talking about education. Local school districts require school buses, that require fuel. More and more money is shifted to transportation costs (with half-empty buses) every year which takes out money from the best performing teachers, and the classroom in general. We don't need more money for the local schools, we need to reduce transportation and heating costs for our schools. Not to mention the lumber that is cut with chainsaws, transported in trucks, and made in factories into paper to write on and make books. If you understand energy, you understand how it effects our children's education.

Energy is our social security:

If you talk about our energy prices and alternate fuel sources, you are talking about our social security dilemma. When you hear about record oil profits, ask yourself: "If we had invested social security taxes in energy stocks even three years ago, would I be worried about the status of social security?" Not to mention, as wind plants, gas pipelines, and coal plants are built, why would we not invest in our energy with our retirement funds. Rather than scorning energy companies for their profits, perhaps we should be taking advantage of them as well. Why aren't our 401K's invested in the oil companies? Not a single oil company is just invested in oil. They are energy companies. If you understand energy, you understand social security.

Energy is our national deficit:

If you talk about our energy prices and alternate fuel sources, you are talking about our budget deficits. If we were putting more people to work on our own oil fields off shore, building our own natural gas pipelines, building nuclear power plants or mining coal, we would be collecting more payroll, property, and other taxes. Because we import so much oil, we are not putting people to work and are missing out on all that revenue. We don't need to raise taxes, we need to keep them at the level they are at (or lower them), and put more people to work giving us energy. Oil companies have about a 50% tax rate as it is. We need them to do more business in the United States, not raise taxes on them. A smaller deficit leads to a stronger dollar, which leads to the cost of oil dropping even more. If energy/oil is cheaper, the cost of defending our nation is cheaper.

Oil will, for a long time to come, be a key part of our energy solution in America. An all of the above solution is required today. Each of these categories above could be elaborated on even more, and there are more categories I am sure. Increasing taxes does not create jobs, drilling for oil while building other energy infrastructure does. I would ask that you decide which candidates (at the local and national level) provide the best common sense and time sensitive energy solutions for America. Regardless of your personal 'key issue', it is tied to the price of our energy. Let's drill baby drill, lay pipeline and railway, and start today. From poverty (energy prices, home foreclosures, etc) to national defense (the price of the fuel in our tanks and fighters), energy is...