The Democrats present the Trojan Drilling Bill, the stock market is in major jitters, investors look for safe places to put their money. Hence oil, gold/silver/precious metals go up. Pretty simple.

With the Democrat's no-drill oil bill, prohibiting drilling in most areas, there will be little change in our domestic oil supply. If we don't get a real Drill Here bill, we will be dependent on foreign oil for years and paying higher prices. It is supply and demand...the price will go up.

Anyone wondering if the Democrats are trying to create such an oil price crisis that the government must come in and take that industry over too? I am hard pressed to explain the Democrat's stance any other way.

The other factor involved in precious metal and oil price increases is the fall of the dollar. It had been improving since about July. But the Freddie and Fannie / financials bail outs cause the United States to expand the money supply. That is inflationary, resulting in the value of the individual dollar to fall. Again, it is supply and demand.

From the Financial Times: The Short View: Oil and the Dollar: 

By late morning in New York on Monday, the price of oil had climbed by 20 per cent in barely five days and scarcely anyone had noticed. Then it went into overdrive, hitting $130 at one point before settling at $120.92. Last Tuesday, it traded at $90.51 – a swing of 44 per cent from bottom to top.

This had little to do with the supply of and demand for oil and everything to do with the fallout from the “Paulson plan” – the proposal to risk $700bn of US public money in a bail-out of toxic securities held by banks.

Oil rose as doubts surfaced about the plan.

When people are nervous, they look for tangible products to invest in. 

A key variable is the dollar. So far, it has fallen in response to the possible huge rise in the US deficit. The markets seem to have gone a step further and assumed that this step will be be inflationary and cause financial assets to lose value.

In that situation, the thing to do was to head for real assets, led by oil, although other commodities, led by silver, also had a strong day. Unfortunately for the Paulson plan, the inverse relationship between oil and the dollar is one of the few financial constants to have survived the past few days.

I heard this morning that oil settled down to about $108/barrel in Asia. People are nervous worldwide. The US money supply is expanded beyond thin.

The last thing we need is another check writing spree by the government in the form of a Democrat 2nd $50billion stimulus package or a $1,000 energy rebate based on a windfall profit tax to oil companies as Obama is touting. (That tax would be passed onto consumers, making oil prices higher.)

Even the Federal Government can only print so much money if it is to be worth more than the paper it is printed on! 

Brookfield District 7 Info meeting, Wed., Sept. 24, 2-3pm or 6:30-7:30pm City Clerk Kris Schmidt will be in attendance to answer questions or concerns regarding recent news about the Van Hollen lawsuit against the state elections authority.

Please, comment content should relate to the subject of the post. Although I try to respond to many, do not interpret my lack of a response as agreement.

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Have you noticed that the mood of the country has changed regarding energy?

Last year, THE solution was all about growing our own energy by using ethanol. The emphasis was on reducing our carbon footprint and dependence on foreign oil, regardless of the cost.

But rising food prices and the fact that ethanol was a boondoggle (using as much energy as it supplied) caused ethanol's reign to slip from political popularity.

Then came Newt with his Drill Here.Drill Now.Pay Less. campaign. While I am surprised that he never did get those 3 million petition signers, he certainly started the conversation that we must start producing more oil domestically.

It was a conversation the President and House Republicans were willing to listen to. Nancy Pelosi and the House Democrats, however, were not. In fact, she shut down the House for 5 weeks!

During that 5 weeks off, around 130 House Republicans kept the heat on the discussion in the House. See YouTube

Also during the summer, the polls started showing that 67% of Americans favored domestic drilling.

John McCain responded to that fact by embracing offshore drilling. Certainly his picking Palin indicates he is looking at domestic oil and increasing natural gas. The Republican ticket has an "All of the above" approach. (Oil, clean coal, natural gas, tidal, hydro, hydrogen, geo-thermal, nuclear, wind, solar, etc.)

Barack Obama wouldn't go that far, but did promote getting off foreign oil dependence by increasing clean coal, natural gas, and safe nuclear as additions to the usual wind, solar, etc.

But while all this new domestic energy posturing was going on, Pelosi and the House Democrats were not available until this week. On Monday:

"House Majority Leader Steny Hoyer (D-Md.) said Monday morning that the newest Democratic energy bill will be brought to the floor under normal rules and will be subject to a vote on a Republican alternative that is likely to call for even more drilling than Democrats are prepared to swallow.

So finally, she and the House Democrats are willing to allow a vote on drilling!

"Pelosi miscalculated in her heavy-handed tactics before the recess.  She attempted to push through her own plan under suspension of the rules, a tactic she decried in 2006, which kept Republicans from offering an alternative.  When it failed, she adjourned Congress, hoping to put off the debate until after the conventions … and her book tour.

"Instead of regrouping, the Democrats found themselves routed by an angry electorate and motivated Republicans.  The House Oil Party kept the issue in the media eye, at least to an extent, but high gas prices kept it on the minds of voters while Democrats took their summer vacation.  It was as poor a political calculation seen in recent years, and the sudden shift in generic Congressional ballots and in party identification has been the result.

"Pelosi and Harry Reid may have finally figured out that they could lose this election on energy policy.  Will this be enough to stanch the bleeding? (My emphasis)

This vote would have never happened without public pressure. We tend to forget that fact. But don't jump for joy just yet.

The next hurdle will be, what kind of energy bill gets passed? Will it be a real energy bill that truly increases drilling opportunities and new energy sources? Or will it be just all show and no go? as a token attempt by Democrat Congressmen and Senators up for reelection to appear sympathetic to energy prices?

But House Republicans called the Democrats' proposals "gimmicks," and instead have insisted on a stand-alone vote on oil drilling.

"Speaker Pelosi's so-called 'energy' bill will do nothing to help our energy crisis," said Rep. Michele Bachmann, Minnesota Republican. "It will multiply red tape and make it almost impossible to lower already skyrocketing oil costs." (My emphasis)

Stay tuned! 

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Brookfield7, Fairly Conservative, Betterbrookfield, Mark Levin,  Vicki Mckenna

Have you noticed that this summer was cooler than usual? That fact, coupled with our recent cold and snowy winter, takes the subject of Global Warming off the front burner.

The last time the temperature didn't hit 90 degrees in Milwaukee during a summer* was in 2000, the weather service said. Before that, it was 1915.

But without even knowing what the daily highs were, could you tell our days and nights were cooler when compared to other summers? I could. Thanks to lower evening temperatures, we were able to avoid turning on our electricity guzzling air conditioner this summer.

As a gardener, I know this summer has been cooler. Tomatoes, which require warm evening temperatures, are ripening slowly. This spring my peach trees let me know we had a colder than usual winter by producing only 2 blossoms. Essentially all of the flowering buds were frozen out. I haven't had a bumper crop in years.

We may have had a stretch of warmer than usual temperatures in recent years. These fueled the Global Warming argument. Who could forget the summer of 1995? (We were remodeling. The whole east side of our house was open to the elements and mosquitoes. Couldn't run the air.) Remember that summer? We had a number of 100+ days! It was awful.

But the warming trend seems to have turned around, and I think it is taking the wind out of the Global Warming alarmists' sails.  

Did you notice how the Global Warming/Climate Change issue was no longer in the limelight at the Democrat convention? There was lots of talk about energy independence and getting off of foreign oil from the Democrats, but not much on reducing carbon footprints, or Global Warming specifically, that I heard.

Barack Obama did not mention Global Warming or even Climate Change in his speech. The closest Obama came to it was, (my emphasis)

And for the sake of our economy, our security, and the future of our planet, I will set a clear goal as President: in ten years, we will finally end our dependence on oil from the Middle East...

...As President, I will tap our natural gas reserves, invest in clean coal technology, and find ways to safely harness nuclear power**... ...And I'll invest 150 billion dollars over the next decade in affordable, renewable sources of energy - wind power and solar power and the next generation of biofuels; an investment that will lead to new industries and five million new jobs that pay well and can't ever be outsourced.

The Republicans are off to a slow start with their convention due to hurricane Gustav. Last night Joe Lieberman did mention global warming briefly:

If John McCain was just another go-along partisan politician, he never would have led the fight to fix our broken immigration system or to do something about global warming.

*The article stated that for record keeping purposes, they count summer as being June, July, and August instead of the June 22 - Sept. 22 definition of summer. 

**Pretty ironic. The Democrats have been blocking these energy sources in Congress, but now that the American public is demanding domestic drilling, natural gas, clean coal, and nuclear is OK?

Links: 

Brookfield7, Fairly Conservative, Betterbrookfield, Mark Levin,   Vicki Mckenna

Last May I told you about Randy Melchert, candidate for the Wisconsin State Assembly--24th District.  Although that is not my district, his "Melchert Plan" to lower area gasoline prices by 10% is appealing. I don't have to live in the Menomonee Falls/Germantown area to be in favor of that! 

From his website:

...[His] three-part plan would eliminate the Minimum Markup Law, lower the state Gas Tax to the national average, and end the forced use of Reformulated Gas.While gas prices have risen nationwide, gas in Wisconsin has risen more than other states because Wisconsin has one of the ten highest gasoline tax rates in the nation! The Tax Foundation shows how gas taxes in Wisconsin are 3 cents higher than Indiana, 5 cents higher than Ohio, almost 11 cents higher than Minnesota and Iowa, almost 15 cents higher than South Carolina and Kentucky, and 19 cents higher than New Jersey

Now I could understand if the gas tax was used for highway maintenance and road repair, but when Governor Doyle can steal $240 million from the transportation fund to cover the rest of his budget, we're paying too much in gas taxes.

On his website, Melchert includes a series of interesting charts, graphs, and lots of statistics that illustrate how Wisconsin drivers pay more for gasoline than most other states. There is also a savings calculator where you can punch in your numbers to see how the minimum mark up, reformulation, and higher gas taxes affect you. On average, I probably would save $300 a year, but if I would calculate the savings for our entire household, we would be saving somewhere around $900 a year.

Since we just returned from a trip out west, I can confirm we found gas prices elsewhere much cheaper. The added bonus was that we could get non-ethanol gasoline in other states, giving us more miles per gallon.

For example: in a 2 day period on Aug. 16th and 17th, regular gasoline in Sioux Falls, SD was $3.49/gal, Willmar, MN was $3.62/gal, but in Wisconsin, reformulated gas (the only kind available) in Black River Falls was $3.79/gal. 

Check out the information on Melchert's website, and if you would like to save 10% on your gasoline bills, contact your representatives and senators and ask them to implement the Melchert Plan!

If I lived in the 24th District, I would be voting for Randy Melchert come Sept. 9th. But I live in the 14th District, so my vote happily goes to Leah Vukmir.

Links: 

Brookfield7, Fairly Conservative, Betterbrookfield, Mark Levin,   Vicki Mckenna

Wow! We don't need to drill in the US for more oil. All we have to do is properly inflate our tires*. At least that is what Obama said yesterday, Obama energy policy: 'Inflate your tires' Candidate claims oil savings would equal new production plans:

"There are things you can do individually, though, to save energy," Obama said. "Making sure your tires are properly inflated – simple thing. But we could save all the oil that they're talking about getting off drilling – if everybody was just inflating their tires? And getting regular tune-ups? You'd actually save just as much!"

Vicki McKenna played the clip of him saying that 2 times on her radio show today. Unbelievable. Take a look at the Google search of Obama inflate tires too. Lots of entertainment there. UPDATE: Cindy Kilkenny has the Youtube posted of his comments--you can see it for yourself.

I will make sure my tires are properly inflated before I go on my next road trip later this year. Bet I only have to stop for gas once or twice! ;-)

Maybe one campaign strategy for Republicans would be to just arrange Obama speaking opportunities--no teleprompter allowed though.
 

*Just imagine how our economy would improve it we properly inflated our tires AND drilled here? 

Click here to sign the DRILL HERE. DRILL NOW. PAY LESS domestic drilling petition and see the latest links to related oil news (updated every day).

 GOPUSA's Send an email message to Congress about domestic drilling

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Barack Obama would prefer that most people think he is John Kennedy the 2nd. But where Kennedy said, "Ask not what your country can do for you; ask what you can do for your country", Obama seems to have an opposite campaign theme: Don't do anything for yourself that the government could do for you.

No, to me, Obama more closely resembles former President Jimmy Carter. They both favor negotiating with terrorists and both seem anti-semitic. They also both share the same opinion on windfall profit taxes for oil companies.

"'SPEAKING OF WINDFALL PROFITS',  Barack Obama said yesterday [Monday] that he wants to impose a "windfall profits tax" on American oil companies. This is a stupid idea, unless you want to reduce the supply of oil and thereby increase prices even further." Barack Obama said Monday:

"I'll make oil companies like Exxon pay a tax on their windfall profits, and we'll use the money to help families pay for their skyrocketing energy costs and other bills," the Illinois senator said.

That same Reuters piece mentioned that "CRITICS SAY TAX DOES NOT WORK": (My emphasis)

Critics of the windfall profits tax say it proved to be counterproductive when it was last put in place in the United States in 1980 during the final year of President Jimmy Carter's administration.

Those critics say the measure prompted oil companies to cut back on domestic production while failing to raise as much in tax revenue as lawmakers expected. It was repealed in 1988 during the Reagan administration.

What's that saying about history? Those who fail to learn from history are doomed to repeat it? That's  Change we can't afford:  

“At a time when American families face record gas and energy prices, Barack Obama has called for even higher energy taxes. At the center of Barack Obama’s plan is a scheme last tried under Jimmy Carter that only increased our dependence on foreign oil. We shouldn’t expect anything more from a politician who has consistently voted to increase taxes on energy, including natural gas purchases in Illinois. Barack Obama doesn’t understand the American economy and that’s change we just can’t afford.”

BARACK OBAMA’S PLAN TO INCREASE ENERGY TAXES WILL HURT AMERICAN CONSUMERS (from the McCain campaign.)

Barack Obama is trying to call a McCain presidency George Bush's 3rd term. Tuesday I heard John McCain fire back that an Obama presidency would be Carter's 2nd term.

I don't believe McCain would be a 3rd Bush term, but if we are going to have a rerun...I know which presidency I would pick.

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