Deeper In The Hole…….

Posted: 07/06/2008 in Uncategorized
Tags: , ,

With the elections coming up sooner than we think, it should be a time to pause and think about the real meaning of the game of politics. Next week will be the local and primaries here in Maine. Many communities will be hashing out bond issues. Some will be dealing with local charter issues. Community expenditures and investments will be central to others. But no matter how you look at the ballot, money is the key to every question. In every case, requests for more of it are made.

The big news over the last couple of day’s is of course the economy. Politicians know that, and when the economy looks grim they try to find other issues to campaign on. other issues to distort the world as we know it onto something they believe they can deal with. The headlines after the close of yesterday’s markets came as no surprise to me. Unemployment shot up to 5.5%. more people out of work obviously means there is insufficient work to be had. Sort of. Person wants to work bad enough, they’ll find a job. Unless of course we really are in a depression and there simply isn’t enough work out there because the economy actually is crashing. That’s my belief, even if I am in a minority with it.

But rising unemployment means a lessening of the GDP, and with it a lessening of the value of our currency, further damaging our efforts to buy from a foreign vendor. And unfortunately, since we seem to have become more of a consumptive nation, rather than a manufacturing nation, almost everything we buy comes from abroad. Have you noticed that the dollar stores aren’t so cheap anymore? As a result the US dollar dropped one percent against the Euro dollar.

And oil prices as well have spiked to a new high again, closing at $138.54, which by the way not only is yet another record high, but the $10.75 jump is a daily record as well. In spite of the fact that the leftists want you to believe that the world is heating up due to manmade global warming, the spring weather thus far leads me to believe that we’re going to have a cold rainy summer, followed by a long fall season, and an even longer, and colder winter. It’s going to be an expensive heating season.

One of the ways some hope to cope with the price is through a Co-op purchase agreement, but I don’t believe much success will come of it with the volatility of the markets. The PPH reports that the buying plan the city of Auburn hoped to embark upon has already fizzled. Apparently only one oil dealer out of the 16 contacted offered a quote, and that one was for .30 cents above current market price. The problem behind that course of action lies strictly in the pricing of the supply, and that can only be assured by purchasing futures. Oil is climbing today, but what if something should happen to reverse the trend? Suppose we get totally cut off from foreign oil and we have to drill for domestic oil. Initially there would be a catastrophic climb, and then the price would plummet, leaving those who purchased at the higher price in a bankrupt situation. The dealers aren’t going to be stupid enough to offer a price unless somebody guarantees payment for the oil at that price.

Topping off the day of bad news is the added fact that the stock markets also tumbled. No one was spared as the Dow dropped nearly 400 points in its worst one day decline in a year and a half.

And speaking of global warming, the Senate pulled the Lieberman-Warner Climate Change bill from the floor yesterday. While many of the democrats wanted to push it through, avoiding necessary debate on the issue, the fact that discussions surrounding the true costs of this UN backed tax scheme came to light seems to have embarrassed some of the members, killing further action. According to an article in the Washington Post, Oklahoma’s Inhofe was quoted as saying “As I suspected, reality hit the U.S. Senate when the economic facts of this bill were exposed,” Sen. James M. Inhofe (Okla.), the ranking Republican on the Environment and Public Works Committee, said in a statement. “When faced with the inconvenient truth of the bill’s impact on skyrocketing gas prices, very few Senators were willing to even debate this bill.” No matter how you look at this piece of legislation, it’s going to damage the US economy beyond repair. One of the things I find disturbing about this whole process is that the Hill seems to almost not want to have an effective debate over the matter. Apparently there were even 10 democrats who voted to end the action upon the bills discussion.

Today being Saturday, most people are eager to see what the outcome of the Hillary Clinton campaign will be. Supposedly, she is to announce officially that she will be dropping out of the race. We’ll see what happens, but many analysts suggest Obama will offer her the Vice Presidential slot. I don’t see that as happening, but you never know.

Many people seem to feel that the government is the best caretaker of the public well being, but I have always disagreed with that presumption. Neighbors and family are the best caretakers of the public need. A recent push by locals in Old Town proves that point, as reported by CBS news……..

  1. Andrew T. Biddinger says:

    Hey, great blog!!
    We must stand for America and conservatism. Go Mike also!!
    Check out my blog.

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