Posted on 02/24/2008 3:33:30 PM PST by GQuagmire
GLOBAL WARMING IS a planet-sized problem, so policy solutions tend to aim for the grandest possible scale. The signatories of the Kyoto Protocol have pledged to cut their greenhouse gas emissions at a national level, while laws in various countries and states seek to reform entire industries.
(Excerpt) Read more at boston.com ...
Kyoto was formulated in 1997 when oil was close to $10 a barrel. now it is closer to $100 a barrel. Inflation by the fed has achieved what the enviros could not.
Blaming $90+ crude on the Fed is simply fatuous. Suggest you starting reading WTRG Economics' website. Written by a gent who makes everybody's Top Ten List of energy analysts. And, just btw, both ExxonMobil and the Russian State Bank are among his subscribers.
Crude, and energy generally, is a tough game...not nearly as simplistic as you try to make it out to be.
FReegards!
I’m talking about the value of the dollar itself as the reason for much of the increase and not just the supply and demand of oil.
There was a deflation and now there is inflation...and the way to fix it is for the Fed to directly take out the excess liquidity it created over the years. If it tries to fix it by raising interest rates, it will just contract the economy and you’ll have stagflation. Most people don’t understand supply side economics because it’s not in the standard textbooks.
Please also see this link and a selected quote below
http://www.supplysideforum.com/archive/20060826/ssf20060826.html
Beginning in April, 1997, Jude Wanniski communicated to the Fed Chairman that deflation had ensued. The 1997 cut in the tax rate on capital gains from 28% back to 20% required greater monetary liquidity to accommodate expanding private investment.
Rather than heeding this advice, Chairman Greenspan chose to abide by Keynesian concepts of the Phillips Curve; he watched the low unemployment numbers and worried about inflation.
The deflation of which Wanniski had warned drove commodity prices down, including oil to $10/barrel. Oil exploration and marginal production shut down.
Then as the capital gains tax cut took hold, the strengthening economy demanded even more oil and the oil price shot back up. This false signal from the rising oil price caused more inflation fighting by the Fed.
The resulting deflation chased investors from commodities-based industries, and from smaller national economies with currencies tied to the dollar, such as the “tigers” of southeast Asia. Capital flowed into intellectual property and financial instruments, particularly technology stocks, as a refuge from commodities and other businesses with no pricing power.
...hehehe.
Am I allowed to say global warming amounts to intellectual masturbation?
If anybody watched the National Governors Convention on C-SPAN, you can see that the fix is basically in on global warming. The governors are essentially giving in to the hysteria and agreeing that we are going to destroy the comsumer economy in order to stop the evil carbon (of course, all that talking creating CO2 but they seemed not to notice).
And yet nobody but the Governor of Alaska wanted to point out that we still need crude to run our cars and we should be getting it from our own country to both preserve JOBS and avoid subsidizing TERRORISTS and DICTATORS. Of course, it was basically ignored and won’t make it into the final language which the NGA will present to Congress. The only talk is about how we are going to produce the electricity for power plants and not how we are going to continue to power vehicles which is 2/3rds of the energy use.
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