Natural Gas exhonerates Speculators! 1

Ok, I have conversed with many via twitter that think speculators are the devil.  While I agree, as a speculator, that they are a part of the problem, I disagree that they drive price.  Instead, speculators only carry the momentum that is already pushed upon it by outside factors.  I am excited to point out the latest example of speculators being neutral when it comes to price.  Natural Gas is a commodity that is played just like oil.  There are a hundred different ways to play this commodity, but the most important point is that it is at multi-year lows.  Has demand gone down? No, but supply has gone up.  Due to fracking (no comment on the legitimacy of this process here) they are finding it under every rock in the U.S.  I exaggerate this on purpose.  Because the notion that it is everywhere is speculation.  Speculators are getting out of the trade because of an assumed over-supply.  They are correct!  This lowers the price to unheard of levels.  It is almost a 1/3 the price is was in 2010.  Where are the Senators now?  Why aren’t they out congratulating us?..  Hypocrites!

The major difference between Natural Gas and Gas at the pumps is that there are more factors for gas at the pump.  When it comes to gas, we are far more subject to feuding countries that supply it, and profit lines of major refiners here in the U.S.  Remember that it is Oil that is speculated, not the price of gas at the pump.  Big oil companies are profiting huge on the difference between the price of oil per barrel and what they can get at the pump.  Here is what I mean: Last April price of light sweet crude was $125 per barrel and oil companies were still able to make a good profit at $3.25 per gallon.  Now that oil is only $103 per barrel, they are able to charge over $4.10 at the pumps.  This isn’t speculation, but profit.

The GOP Conspiracy 1

Before I begin, I must be very clear that I am not a conspiracy theorist kind of guy nor an anti-Republican!  Therefore, it is an internal struggle to put this out there, but after several months of introspection I feel it is time.  The Republican Party seems to have conspired to keep Buddy Roemer out of the race for president.  He would never come out and say it because it opens him up for an all out attack from the party.  He would then have an even smaller chance to win an election.

What are the facts?

Buddy Roemer has all the experience you would want for a commander-in-chief.  At Harvard, he earned a BS in Economics and later an MBA in Finance.  From 1981 to 1988 he served as a Congressman.  From 1988 to 1992 he served as Louisiana’s Governor.  While there he cut the unemployment rate in half, reformed their campaign finance laws, and balanced the state’s budget.  I don’t mention this to get readers to vote for him, but to show how qualified he is to have been a candidate.  The problem isn’t what he has done, it is what he hasn’t: He has never accepted Super PAC, or special interest money.  Matter of fact, this has been his platform to get elected.  The fact that he doesn’t accept this money makes him an enemy of the state, if you will.

Imagine running Buddy out there when his platform of campaign finance reform and getting SuperPAC’s out of politics could make your party look bad, as a whole.  Fox News network, a GOP slanted news network, hasn’t even hinted that Buddy Roemer exists.  He was left out of all debates.  Why you might ask?  At first they told him he wouldn’t be allowed in the debates until he officially signed on as a candidate.  That makes perfect sense until you realize that several others hadn’t that they allowed in debates.  So, Buddy officially announces his running.  Then they told him that he had to have at least 2% of the votes of a given state to qualify.  Again, you might think that this is a fair request.  We cannot have everybody and their brother in a debate, but you have to know that when they required this from Buddy, John Huntsman, Michelle Bachmann, and Rick Perry didn’t have 2% yet they were invited into these debates.  Despite the hypocrisy of the situation, Buddy attained the 2%.  Then they said he had to have 5% of the votes.  At this time only Perry and Bachmann didn’t have the 4% but they were allowed in the debates.  Matter of fact, Buddy was ahead of both of them in the polls.  You still saw no mention of his existence on Fox News and he wasn’t allowed into the debates.  Buddy Roemer was working hard to get the 4%, and then they dropped the bomb.  They told him that he had to have a minimum amount of money raised for his campaign to get in the debates that was far beyond what he had raised to that point.  This, they knew, went directly against his platform.  He will not accept more than $100 per campaign donation.

As a result, Buddy Roemer has dropped out of the GOP race and decided to run as an Independent via the American’s Elect process.  Although I’m voting for Governor Roemer and love his platform of Campaign Finance Reform, this is not my point.  I hate the fact that politics has come to this.  Republicans snubbed one of their own because he was a threat to their pocket-book.  Democrats would have done the same thing if the situation was reversed.  It is a bi-partisan problem.  They will do anything they can to “keep the money in.”  This is why we, as a Republic, have to fight our own apathy and do something about it.  We have to support someone like Buddy.  Even if you don’t plan on voting for him, you should want a man like him in upcoming presidential debates.  His take on money in government shouldn’t be silenced or big corporations will continue to own our democracy.  We have to get the money out, and supporting people like Buddy is a way of going about it.

 

 

 

Apathy vs. misdirection: Winner kills the Republic 1

Misdirection is a form of deception in which the attention of an audience is focused on one thing in order to distract its attention from another.  Apathy is a lack of enthusiasm or energy, lack of interest in anything, or the absence of any wish to do anything.

You have political ADD, prove me wrong and read the entire article.

I was watching a GOP debate in Florida a few months back.  Newt Gingrich had been taking heat from Mitt Romney because of his payments from Freddie Mac for his “historian” expertise.  Mitt was calling him out as an unregistered lobbyist without using the words.  Being that they were in Florida made it extremely poignant because of their high foreclosure rate.  Many people in the audience and in the state are/were profoundly affected by the economic crisis and inclined to hate big banks such as Freddie Mac.  Newt, came prepared, so he thought.  He attacked back.  Gingrich said Romney had personal holdings in “a part of Goldman Sachs that was explicitly foreclosing on Floridians.” He did; it’s called a blind trust. A blind trust is  a trust managed by third-party: a legal arrangement in which a trustee manages funds for the benefit of somebody who has no knowledge of the specific management actions taken by the trustee.  Assuming Newt had done his homework, he already knew this.

Why do I even point this out? It is a game of misdirection.  Government officials of all types are pointing out flaws on the other side to distract us from the big picture.  Democrats are turning the Treyvon Martin shooting into a political debate.  It shouldn’t be a debate of Republican versus Democrat.  It should simply be about convicting a murderer.  Republicans are doing everything in their power to bring down “Obama Care.”  They have turned it into a life-style choice.  Instead of the benefits of this program, they are looking at the fact that traditional medicare generally covers some sort of birth control.  “Why should I have to pay for this person’s sex-life?”  It shouldn’t be a question about paying for a sex-life, but instead about the logistics of paying for a nationwide health plan.  Debate that to death instead of trying to distract us from real issues like the fact that millions are without.  They have a very good argument when it comes to funding it, why not stick to that?  It’s not sexy enough!  They have to have multiple bullets in their distraction roulette game in the hope that one of them will hit their mark.  Democrats have, in turn, turned the Republican raised issue about paying for someone elses birth control with tax money into a “war on women.”  It is a beautiful spin making Republicans look rather sexist.  No matter how you look at it, it is a spin game.  Everything is to distract us from issues they don’t want in the headlines.

The issue that neither Republicans or Democrats want to focus on is campaign finance reform.  What?  You might say that is a huge leap.  You’re right, but hear me out for a moment.  Nothing in government is left untouched by the almighty dollar.  It is campaign dollars that push, manipulate, stall, and even write legislation.  The amount of money it takes to win an election these days is crazy, and it is getting crazier!  To keep their jobs, and their standing within their respective political parties is pushing politicians to continually fundraise.  Literally, they spend 30-60% of their time trying to put money in the war chest.  If you think that campaign donors expect nothing for their money, you are sadly mistaken.  Just looking at earmarks, there are hundreds of examples where donors are getting earmarks.  Matter of fact, I find it hard to find where an earmark didn’t benefit a campaign donor, or someone who spent millions lobbying and the lobbyist contributed to an earmarks sponsor.

If you think it is just earmarks just look at Greg Walden, Republican Congressman, who just introduced the Federal Communications Commission Process Reform Act of 2012.  This act would significantly reduce the FCC’s ability to govern big media companies.  He receives hundreds of thousands of dollars from the very media companies that would benefit from this legislation.

Here is where the apathy comes in.  Your eyes have probably rolled back into your head and I’ve lost your attention.  I was talking to a buddy of mine about this stuff the other day and he said, “that’s just business as usual.”  It killed me! It is only business as usual because we allow it to happen.  We allow them to distract us with topics unrelated to their pay for play government.  We didn’t do this, but it is our job to collectively stand up and say no.  It isn’t ok to sell legislation to your biggest campaign donors.  We need to take our ADD medicine and stay on point.  We need campaign finance reform more importantly than any thing else.  Once real reform is done, we can focus on other important issues.  That way they are not tainted with corporate dollars.

 

Profit, not speculation, driving gas prices! Reply

One year ago Crude oil was $120 per barrel and never broke $3.25 at the pump. Currently, Crude Oil is resting at $102 per barrel and the average price at the pump is over $4.00.  Therefore, since April 2011, oil companies are saving $20 a barrel while gas prices have risen 23%. This equals a profit increase of 40%.  Real demand has been very steady, so we have to assume that prices are merely profit based.

Several Senators and Congressmen and women have come out to attack “rampid speculation.” Senator Bernie Sanders has gained popularity just for his stance against Wall Street on this issue.  Sanders is sponsoring the End Excessive Oil Speculation Now Act.  Now I don’t see any problem with this idea, but they are so far off the point here.  It is like Papa Bear getting mad at Mamma Bear because Goldilocks ate Baby Bear’s breakfast.

Speculation does have a piece of the blame here, but it is minute compared to the almighty profit of big oil companies.  Also, speculation drives the price down just as much as it drives the price up.  The major fault with speculation is that it swings the prices more dramatically than it would otherwise be.  For example, at the end of 2008 we thought the financial world was collapsing.  Because everything in speculation is anticipation, speculators figured that demand would diminish further than it actually had.  This assumption led to the price of oil to fall to $32 a barrel.  In actuality, it had dropped, but only minimally in the grand scheme of things.  Within a year, prices had gotten back to $80 a barrel.  At that price, everyone was pretty happy.  You see, $80 is the breaking point for big oil companies to make money.  They were returning to big profits and we were still under $3.00 per gallon at the pump… a far cry from being over the $4.00 we were seeing in the summer of 2008.

Exxon Mobile, a company I love, makes 17 billion dollars a year before taxes.  Knowing that they are losing money in Natural Gas, where do you think they are getting record profits?