Orange County governmental bodies meeting earlier this week continued their on again, off again discussion of needing to do more about something called "affordable housing". Memo to local politicians: ain't no such thing in Orange County. True, over the past several years more than 400 permits for "size-limited units" have been issued in the county, and over 175 have been constructed.
Developmental fees instituted by municipalities and the county, borne by the developer and passed on to the home buyer are one facet to high housing costs. Another is lack of suitable land in convenient locations -- at a "reasonable" price. Yet another problem is high property taxes, the gift to government by the property owner that keeps on giving. But that's another topic for another day!
Some elected local leaders questioned the amount those pre-construction procedures and associated developmental fees could be both streamlined or lessened. No consensus was reached, although you can be sure the discussions will continue.
Well, if the goal is "affordable" housing, maybe Orange County and its municipalities might want to work out a deal with Durham County. Especially given this article which notes: "[s]ince last year, Orange County home values have increased five times more than home values in Wake and Durham counties," and this: "[t]he average resale price for a house in Orange County is now $443,680, up nearly $80,000 from 2004".
Friday, September 30, 2005
Thursday, September 29, 2005
Hail to the Chief (Justice)!
John G. Roberts, jr. was confirmed by the Senate earlier today by a 78-22 vote. Congratulations to the new Chief Justice.
Who Will It Be?
You can take a test and find out which potential nominee to the Supreme Court best fits your liking.
Here's mine:
JUDGE EDITH HOLLAN JONES
U.S. Court of Appeals, Fifth Circuit.
Appointed by President Reagan.
Born 1949. A Texan.
Nearly nominated to Souter's seat by
President George H.W. Bush.
New World Man presents: My favorite candidate for the Supreme Court
brought to you by Quizilla
Take the test yourself!
I find it mildly interesting that my test result matches my original published thought on this -- I had commented on Jones previously in this blog. The more I think of it, though, the more I'd like to see something totally out of right field. Say former Tennessee Senator Fred Dalton Thompson. [Don't laugh, who'd have thought Dick Cheney for VP when he was leading the search committee? Just noting that Thompson guided John Roberts through the confirmation process! Not that that's any clue.] Don't you know the Hysteriacrats and the Main Steam Liberal Media would spontaneously combust over that!
Thanks to New World Man for the link.
Here's mine:
JUDGE EDITH HOLLAN JONES
U.S. Court of Appeals, Fifth Circuit.
Appointed by President Reagan.
Born 1949. A Texan.
Nearly nominated to Souter's seat by
President George H.W. Bush.
New World Man presents: My favorite candidate for the Supreme Court
brought to you by Quizilla
Take the test yourself!
I find it mildly interesting that my test result matches my original published thought on this -- I had commented on Jones previously in this blog. The more I think of it, though, the more I'd like to see something totally out of right field. Say former Tennessee Senator Fred Dalton Thompson. [Don't laugh, who'd have thought Dick Cheney for VP when he was leading the search committee? Just noting that Thompson guided John Roberts through the confirmation process! Not that that's any clue.] Don't you know the Hysteriacrats and the Main Steam Liberal Media would spontaneously combust over that!
Thanks to New World Man for the link.
Monday, September 26, 2005
Turning the Corner?
59 minutes and 52 seconds had elapsed. Time for one last play. It all came down to the defense -- eleven men needed to keep the other eleven out of the end zone. Period.
Two years ago, in a game that featured a similar finish, the North Carolina Tar Heel defense could not protect the lead on the game's final play. Saturday, with one play to go, Carolina again held the lead and the opponent had the ball with one last chance. Different outcome this time.
Rewind the tape to the Arizona State game in 2003. Carolina held a four point lead at home going into the game's final play. ASU's Andrew Walter was under center. 42,000 Tar Heel fans were standing as one and chanting, "DEE-fense... DEE-fense"! The ball was snapped. Walter dropped back. The crowd roared louder, The rush was coming. Walter dodged the first wave. Time expired. The defense was almost on him again. Briefly, Walter spied an open receiver and let it fly. Time seemed to stand still. Suddenly, the silence told it all. The only sound was a cheer erupting from the impossibly small number of Arizona State faithful in the far northeast corner of the stands. Touchdown!!! Dagger in the hearts of Tar Heel players, coaches and followers. The scoreboard blinked the bad news: Sun Devils 33, Tar Heels 31. It was midway into the season, but the loss set the tone for the stretch run and a final record of 2-10. It was tough being a Tar Heel in 2003.
Fast forward to Saturday, where underdog North Carolina is leading NC State's Wolfpack in Raleigh with but eight ticks left on the clock. Time for one more play. State's Jay Davis is under center on the Carolina 40 yard line. Everyone in the house knows he'll be putting it up for the end zone. At least 52,000 of the 57,100 in attendance are urging the 'Pack to "GO"!!! The ball is snapped. Twenty-two men move at once. Davis rolls to the right to buy time. Carolina has a three man rush coming and everyone else is dropping deep into coverage. Seconds tick off. The ball is in flight. Time again stands still. Defenders and receivers converge. Again, the silence tells it all. The ball falls to the ground. This time it's the Carolina fans whooping it up in the distance. The scoreboard reports the final score: Carolina 31, State 24. Big difference in just two years? Maybe. Certainly it's more proof the UNC defense is on firmer ground. Second heart-stopping win over NC State in the last twelve months.
Last October, the UNC defense preserved a 30-24 victory on two of that game's final three plays. On second and goal from the three, State's T.A. McClendon appeared to have scored, but it was ruled his knee touched the ground first. On the next play, McClendon leaped over the pile, but was met head-on by Kalif Mitchell, who knocked the ball loose. Fumble. Recovered by Carolina. Threat denied. Carolina took a knee on the last play to secure the win.
Has the Carolina defense managed to "turn the corner"? Is it markedly better? So far three games into the season it's ranked 50th over-all in Division I. Last year's defense finished ranked 109th. There's too much football left to say for sure, but another big step can be made Saturday.
Just like last year, Utah is Carolina's next opponent. It seemed as if the Tar Heel defense forgot to make the trip to Salt Lake City then, as the Utes were virtually unstoppable in rolling up 669 yards of offense and 46 points en-route to a 30 point win. Granted, Utah doesn't have Alex Smith at quarterback nor Urban Meyer coaching it anymore, but they're still running Meyer's offense -- and they still have a bunch of talented players from last year's team. If Carolina's defense plays the way it has so far this season, and the offense continues to improve as it has, a Tar Heel win is not outside the realm of possibility. We'll know more around 5:00 Saturday afternoon. Until then, let's not take anything for granted.
Two years ago, in a game that featured a similar finish, the North Carolina Tar Heel defense could not protect the lead on the game's final play. Saturday, with one play to go, Carolina again held the lead and the opponent had the ball with one last chance. Different outcome this time.
Rewind the tape to the Arizona State game in 2003. Carolina held a four point lead at home going into the game's final play. ASU's Andrew Walter was under center. 42,000 Tar Heel fans were standing as one and chanting, "DEE-fense... DEE-fense"! The ball was snapped. Walter dropped back. The crowd roared louder, The rush was coming. Walter dodged the first wave. Time expired. The defense was almost on him again. Briefly, Walter spied an open receiver and let it fly. Time seemed to stand still. Suddenly, the silence told it all. The only sound was a cheer erupting from the impossibly small number of Arizona State faithful in the far northeast corner of the stands. Touchdown!!! Dagger in the hearts of Tar Heel players, coaches and followers. The scoreboard blinked the bad news: Sun Devils 33, Tar Heels 31. It was midway into the season, but the loss set the tone for the stretch run and a final record of 2-10. It was tough being a Tar Heel in 2003.
Fast forward to Saturday, where underdog North Carolina is leading NC State's Wolfpack in Raleigh with but eight ticks left on the clock. Time for one more play. State's Jay Davis is under center on the Carolina 40 yard line. Everyone in the house knows he'll be putting it up for the end zone. At least 52,000 of the 57,100 in attendance are urging the 'Pack to "GO"!!! The ball is snapped. Twenty-two men move at once. Davis rolls to the right to buy time. Carolina has a three man rush coming and everyone else is dropping deep into coverage. Seconds tick off. The ball is in flight. Time again stands still. Defenders and receivers converge. Again, the silence tells it all. The ball falls to the ground. This time it's the Carolina fans whooping it up in the distance. The scoreboard reports the final score: Carolina 31, State 24. Big difference in just two years? Maybe. Certainly it's more proof the UNC defense is on firmer ground. Second heart-stopping win over NC State in the last twelve months.
Last October, the UNC defense preserved a 30-24 victory on two of that game's final three plays. On second and goal from the three, State's T.A. McClendon appeared to have scored, but it was ruled his knee touched the ground first. On the next play, McClendon leaped over the pile, but was met head-on by Kalif Mitchell, who knocked the ball loose. Fumble. Recovered by Carolina. Threat denied. Carolina took a knee on the last play to secure the win.
Has the Carolina defense managed to "turn the corner"? Is it markedly better? So far three games into the season it's ranked 50th over-all in Division I. Last year's defense finished ranked 109th. There's too much football left to say for sure, but another big step can be made Saturday.
Just like last year, Utah is Carolina's next opponent. It seemed as if the Tar Heel defense forgot to make the trip to Salt Lake City then, as the Utes were virtually unstoppable in rolling up 669 yards of offense and 46 points en-route to a 30 point win. Granted, Utah doesn't have Alex Smith at quarterback nor Urban Meyer coaching it anymore, but they're still running Meyer's offense -- and they still have a bunch of talented players from last year's team. If Carolina's defense plays the way it has so far this season, and the offense continues to improve as it has, a Tar Heel win is not outside the realm of possibility. We'll know more around 5:00 Saturday afternoon. Until then, let's not take anything for granted.
Thursday, September 22, 2005
Never Too Old To Learn Something
What do Donald Trump and Bill O'Reilly have in common? Arrogance, I'll grant you, even pomposity. But if you watched The O'Reilly Factor last night, you know they both are in total agreement that Big Oil is ripping us off. If you missed it, here's Bill's Talking Points.
So he wants to know the name of the individual who sets the price for the gas you pay. Hmmm. How simplistic is that? The claim is that some single individual is responsible for calling every retailer and telling them what to charge for their gas. Now that really required a lot of thought. I think my 5 year old could probably do better than that. But just to be sure, I ought to go ask him and see what he thinks. Hold on...
Back now. Here's how that went:
Me: "Who do you think is responsible for telling gas station owners what they should charge for gas?"
5 year old: "The President?"
Me: "Do you think he sits down every day and calls all of the gas station owners in the United States and tells them what to charge?"
5 year old: "Maybe."
Me: "How long do you think that would take?"
5 year old: "Forever."
Me: "Right."
7 year old brother: "Dad, maybe the owners decide."
Me: "How would that work?"
7 year old: "I guess like a yard sale."
Me: "What do you mean?"
7 year old: "You know, if no one wants to pay five dollars for something, you say 'okay, how about three bucks, or whatever'."
Me: "Good point."
5 year old: "Let's sell some of our old toys so we can buy some new ones."
Me: "I like your thinking."
So the youth of America (at least in my house) doesn't buy the idea of one single person setting all of the oil prices, yet Bill O'Reilly does. Hmmm. What's up here?
O'Reilly says he called an oil "expert" and was told "...for gas to cost $3.00 a gallon, crude prices would have to be $95.00 a barrel". So he has decided that means we're being ripped-off. He also says "don't tell me 'the marketplace' or 'the market' is setting the price..." He, and later Donald Trump (obviously another of the nation's top oil experts), talked about how the oil companies are "making obscene profits". O'Reilly urged viewers to "conserve, conserve, conserve", and "don't drive on Sundays" to "send a message to the oil companies". Riiiiggggghhhhhttttt! I guess that means O'Reilly either walks to church or just plain doesn't go -- I'm guessing the latter. Not to mention that's an extreme over simplification with significant consequences -- it would impact a whole lot more than just oil companies.
He's obviously got a bone to pick with restaurants, retailers and the NFL with his "boycott" idea. Honestly, I didn't know he was so mad at so many people, did you? How does he think we get the goods and services we buy on Sunday? They just appear out of mid-air? Hey, Bill, a lot of your fellow Americans WORK on Sunday, in case you hadn't noticed. It's called "helping to make ends meet". Surely you can't fault someone for trying to make a living, can you?
And as for Trump -- who makes his money in real estate development --for him to jump on big oil is just too rich! Pot calling the kettle black sort of thing, I'd say. Yep, now there's an industry that plays the profit thing fairly, isn't it. Real Estate. Hey, Donald, who sets the price of housing? To paraphrase Bill, it must be one person. Right? Right? Don't tell me it's "the market" or "the marketplace". And why is selling a home you paid $75,000 for 20 years ago at $350,000 today not called an "obscene profit"? In stead, it's called "a smart investment". Why is that? Hmm?
I welcome your thoughts.
So he wants to know the name of the individual who sets the price for the gas you pay. Hmmm. How simplistic is that? The claim is that some single individual is responsible for calling every retailer and telling them what to charge for their gas. Now that really required a lot of thought. I think my 5 year old could probably do better than that. But just to be sure, I ought to go ask him and see what he thinks. Hold on...
Back now. Here's how that went:
Me: "Who do you think is responsible for telling gas station owners what they should charge for gas?"
5 year old: "The President?"
Me: "Do you think he sits down every day and calls all of the gas station owners in the United States and tells them what to charge?"
5 year old: "Maybe."
Me: "How long do you think that would take?"
5 year old: "Forever."
Me: "Right."
7 year old brother: "Dad, maybe the owners decide."
Me: "How would that work?"
7 year old: "I guess like a yard sale."
Me: "What do you mean?"
7 year old: "You know, if no one wants to pay five dollars for something, you say 'okay, how about three bucks, or whatever'."
Me: "Good point."
5 year old: "Let's sell some of our old toys so we can buy some new ones."
Me: "I like your thinking."
So the youth of America (at least in my house) doesn't buy the idea of one single person setting all of the oil prices, yet Bill O'Reilly does. Hmmm. What's up here?
O'Reilly says he called an oil "expert" and was told "...for gas to cost $3.00 a gallon, crude prices would have to be $95.00 a barrel". So he has decided that means we're being ripped-off. He also says "don't tell me 'the marketplace' or 'the market' is setting the price..." He, and later Donald Trump (obviously another of the nation's top oil experts), talked about how the oil companies are "making obscene profits". O'Reilly urged viewers to "conserve, conserve, conserve", and "don't drive on Sundays" to "send a message to the oil companies". Riiiiggggghhhhhttttt! I guess that means O'Reilly either walks to church or just plain doesn't go -- I'm guessing the latter. Not to mention that's an extreme over simplification with significant consequences -- it would impact a whole lot more than just oil companies.
He's obviously got a bone to pick with restaurants, retailers and the NFL with his "boycott" idea. Honestly, I didn't know he was so mad at so many people, did you? How does he think we get the goods and services we buy on Sunday? They just appear out of mid-air? Hey, Bill, a lot of your fellow Americans WORK on Sunday, in case you hadn't noticed. It's called "helping to make ends meet". Surely you can't fault someone for trying to make a living, can you?
And as for Trump -- who makes his money in real estate development --for him to jump on big oil is just too rich! Pot calling the kettle black sort of thing, I'd say. Yep, now there's an industry that plays the profit thing fairly, isn't it. Real Estate. Hey, Donald, who sets the price of housing? To paraphrase Bill, it must be one person. Right? Right? Don't tell me it's "the market" or "the marketplace". And why is selling a home you paid $75,000 for 20 years ago at $350,000 today not called an "obscene profit"? In stead, it's called "a smart investment". Why is that? Hmm?
I welcome your thoughts.
Wednesday, September 21, 2005
Econ 101 Revisited
I hate to do this again, since it has already been addressed on this site here, here,and here, but I keep hearing politicians, people in the media, and folks in the general public who don't have a clue, so here goes...
People, let's put down the tinfoil hats and get off the soap boxes, here. Ignorance is bliss, they say, but it is also THE driving force behind the politicians' and the media's insistence in "doing something about 'price gouging' at the pump". RELAX. Take a DEEP breath.
Once again, an understanding of how the marketplace works is sorely lacking -- they don't teach economics at "Ed Co." (public school), so it shouldn't be a real shock so many don't "get it". Add to that certain well-meaning (but economically illiterate) politicians who are looking to score points with the consumer for "coming to the rescue" against the "greedy, price-gouging oil companies", and you have a recipe for misinformation and misplaced anger.
Let's try to understand a bit more about this commodity called gasoline. Most of this is understood, but let's review, anyway: First of all, it begins as crude oil, which is located deep below the ground in places like Utah, Colorado, the Gulf of Mexico, Alaska, the East and West Coasts of the US, Venezuela, Saudi Arabia, and on and on... It must be tapped by drilling, then pumped or shipped to a refinery where it can be separated into useable products, like gasoline or diesel fuel, heating oil (same as diesel fuel for the most part) and various other items. Secondly, it does not belong to you, YET. You don't have a right to gasoline at the price YOU think is "fair". The price of gasoline, like any other product, is set in the marketplace by the interaction of two forces: the availability of a product and the desire to acquire the product by those who want or need it. Supply and demand. Let's look at each factor, shall we?
As for supply... after it's acquired as crude, shipped to the refinery and processed, the gasoline (or other product) has to be shipped or pumped via a pipeline to a distributor who then pumps or delivers it to a wholesaler or retailer, who finally sells it to the consumer. That's a fair number of steps in the process. Any interruption at any point will cause the wholesale or retail supply to drop. When the supply drops, the price must rise.
Why is that, you say? Well, because the demand for the product is still unchanged. In simple terms, we still want the same amount, but the available product has suddenly become relatively scarce.
Why do you think diamonds cost so much? It's not because they're rare. In reality there is plenty of raw material to be mined. But because the Diamond mines and the supply chain up to the wholesaler and retailer are owned by the Diamond Cartel, it controls not only the available supply but the price for the most part. The supply of the "bling" in the marketplace is intentionally kept very limited by the Cartel, thereby making it artificially scarce and therefore, expensive.
Because diamonds are kept in short supply, the price of those that are available will be as high as: a) the seller can set, yet still be able to sell enough to maximize his profits, but b) not so high the consumer will not buy any. That same equation works anytime any particular product is in short supply. Like gasoline, recently.
Most politicians, in essence, are making the mistake of equating the current supply fluctuations in gasoline with an artificially manipulated supply -- such as is the case with diamonds. Understandibly, they're making an incorrect conclusion. It's not really a matter of "price gouging" at all, but rather one of gasoline's relative scarcity. We're talking apples and oranges, here.
Let's look at the effect of changing demand on price. Back in the Summer even before Katrina, the price of gas was going up. Not because of any hanky-panky by BIG OIL, but because it ALWAYS goes up in the Summer. Why? There are two big factors. The first is people want to go more places and do more things, and they want more gasoline so they can do it. Quite simply, the demand increases. Secondly, the refiners have a limited capacity -- there are not any refineries sitting idle that can be brought on line -- yet the EPA reqires a laundry list of different "blends" of fuel for different areas, which are aimed at reducing (somewhat) Summertime pollution. In this case, there is the same quantity coming out of the refineries, but more different products are being made. That means the amount of product going to any given place is constrained.
It's easy to see how the demand for some of the blends may become disproportionately high. For example, let's say the demand in California goes up significantly more than is anticipated by the refiners and retailers. In the winter (when there are far fewer different blends reqired), additional supplies of finished product may be re-routed to the west coast -- which could help satisfy the additional demand. But in the Summer, the distributor cannot send North Dakota gas out to the west coast because the North Dakota blend is different. The additional demand cannot be met easily, so the available supply becomes relatively scarce, and the price goes up.
Don't forget the fact the price of crude oil has almost doubled over the past year. That means regardless of other factors, the price of the finished product would be more now than it was in the past.
There's one more contributing factor this year -- the weather. Add in the fact Katrina caused a significant, although temporary (thankfully), disruption in the distribution of gasoline from the Gulf of Mexico region of the US. It also shut down a significant portion of production, temporarily. So what do you think that should mean? Good for you, if you said "the price would be expected to go up significantly".
Gasoline (in any blend) became relatively scarce three weeks ago (some Governors were even warning that their states "could run out of gas" in the aftermath of Katrina). With a scarce product, the price HAS to go up. If not, 1) the supplier will run out of the product and won't be able to meet any demand, and 2) people will want to "stock up" to weather the coming "shortage".
One good thing about higher prices is that they discourage stockpiling. That means some supply should be available at some price. Rising prices also encourage conservation. Because people know they only have so much money to spend on gasoline, they understand they need to make what they do have go farther. This is the marketplace at work.
Once the pipelines were back up and refineries moved production back on line, the prices DID start to come back down, didn't they? That's because the supply increased relative to the demand for it. People wanted x amount, but there was now more than x quantity available. In order to sell the supply on hand, a retailer or wholesaler had to lower the price to encourage consumers to buy from him (or her).
New development: Hurricane Rita is in the Gulf of Mexico, so guess what? The distinct possibility exists that supplies will be disrupted again, and in anticipation of that, the price has stopped going down -- temporarily. Wholesalers and retailers realize they'll probably have to pay more next week to get the needed supply since it could very well be limited. You should expect the price you pay will be going up because of that.
BOTTOM LINE: There may be SOME "price gouging" going on in limited instances, but the reality is the marketplace works to match demand with the available supply through price. If a particular retailer is truly "gouging" his customers, chances are they'll soon find out the guy down the street is selling gas for much less, and go there. In that case, if the "gouger" wants to sell anywhere near the normal amount of his gas, he'll have to lower the price. Remember, a full supply of $4 a gallon gas you can't sell is not worth having. What to do? Lower the price to the point people WILL buy it. End of "gouging", pure and simple -- and without Gov Co's interference.
STILL DON'T BELIEVE ME? Check out this, and this by Thomas Sowell, or this, and this by Walter E. Williams, or this by Jeff Jacoby, which leads into:
WHAT TO DO ABOUT THOSE HIGH PRICES: Not much, except conserve where you can and shop around for the best price available. In the long run, though, tell your politicians to put pressure on the EPA to limit the number of different summer blends they require. Also, push your legislators to make it less difficult to increase refining capacity. No new refineries have been built in the US in the past 25 years, due to government environmental restrictions and such. In essence, it has been easier to expand an existing refinery than build a new one. But many plants have reached the limit they can expand on their existing property, so expansion is not necessarily an option. Finally, tell them it needs to be easier to extract oil domestically (far too many people have pushed the politicians to keep oil wells away from places where crude oil is obatainable. There has been significant opposition to new drilling based on misplaced environmental concerns, as well. The oil is there, but compromises must be made to get it. That would go a long way toward neutralizing OPEC's grip on us.
So don't buy into this notion of "price gouging". What you're seeing is the marketplace in action. You may not like it, but that's what it is. If you think retailer A is selling gas for too much, shop around. Find a better price. Go there, instead. It's called "making a choice with your feet". And tell your Congressman or Congresswoman to work on the REAL problems, rather than the perceived ones.
People, let's put down the tinfoil hats and get off the soap boxes, here. Ignorance is bliss, they say, but it is also THE driving force behind the politicians' and the media's insistence in "doing something about 'price gouging' at the pump". RELAX. Take a DEEP breath.
Once again, an understanding of how the marketplace works is sorely lacking -- they don't teach economics at "Ed Co." (public school), so it shouldn't be a real shock so many don't "get it". Add to that certain well-meaning (but economically illiterate) politicians who are looking to score points with the consumer for "coming to the rescue" against the "greedy, price-gouging oil companies", and you have a recipe for misinformation and misplaced anger.
Let's try to understand a bit more about this commodity called gasoline. Most of this is understood, but let's review, anyway: First of all, it begins as crude oil, which is located deep below the ground in places like Utah, Colorado, the Gulf of Mexico, Alaska, the East and West Coasts of the US, Venezuela, Saudi Arabia, and on and on... It must be tapped by drilling, then pumped or shipped to a refinery where it can be separated into useable products, like gasoline or diesel fuel, heating oil (same as diesel fuel for the most part) and various other items. Secondly, it does not belong to you, YET. You don't have a right to gasoline at the price YOU think is "fair". The price of gasoline, like any other product, is set in the marketplace by the interaction of two forces: the availability of a product and the desire to acquire the product by those who want or need it. Supply and demand. Let's look at each factor, shall we?
As for supply... after it's acquired as crude, shipped to the refinery and processed, the gasoline (or other product) has to be shipped or pumped via a pipeline to a distributor who then pumps or delivers it to a wholesaler or retailer, who finally sells it to the consumer. That's a fair number of steps in the process. Any interruption at any point will cause the wholesale or retail supply to drop. When the supply drops, the price must rise.
Why is that, you say? Well, because the demand for the product is still unchanged. In simple terms, we still want the same amount, but the available product has suddenly become relatively scarce.
Why do you think diamonds cost so much? It's not because they're rare. In reality there is plenty of raw material to be mined. But because the Diamond mines and the supply chain up to the wholesaler and retailer are owned by the Diamond Cartel, it controls not only the available supply but the price for the most part. The supply of the "bling" in the marketplace is intentionally kept very limited by the Cartel, thereby making it artificially scarce and therefore, expensive.
Because diamonds are kept in short supply, the price of those that are available will be as high as: a) the seller can set, yet still be able to sell enough to maximize his profits, but b) not so high the consumer will not buy any. That same equation works anytime any particular product is in short supply. Like gasoline, recently.
Most politicians, in essence, are making the mistake of equating the current supply fluctuations in gasoline with an artificially manipulated supply -- such as is the case with diamonds. Understandibly, they're making an incorrect conclusion. It's not really a matter of "price gouging" at all, but rather one of gasoline's relative scarcity. We're talking apples and oranges, here.
Let's look at the effect of changing demand on price. Back in the Summer even before Katrina, the price of gas was going up. Not because of any hanky-panky by BIG OIL, but because it ALWAYS goes up in the Summer. Why? There are two big factors. The first is people want to go more places and do more things, and they want more gasoline so they can do it. Quite simply, the demand increases. Secondly, the refiners have a limited capacity -- there are not any refineries sitting idle that can be brought on line -- yet the EPA reqires a laundry list of different "blends" of fuel for different areas, which are aimed at reducing (somewhat) Summertime pollution. In this case, there is the same quantity coming out of the refineries, but more different products are being made. That means the amount of product going to any given place is constrained.
It's easy to see how the demand for some of the blends may become disproportionately high. For example, let's say the demand in California goes up significantly more than is anticipated by the refiners and retailers. In the winter (when there are far fewer different blends reqired), additional supplies of finished product may be re-routed to the west coast -- which could help satisfy the additional demand. But in the Summer, the distributor cannot send North Dakota gas out to the west coast because the North Dakota blend is different. The additional demand cannot be met easily, so the available supply becomes relatively scarce, and the price goes up.
Don't forget the fact the price of crude oil has almost doubled over the past year. That means regardless of other factors, the price of the finished product would be more now than it was in the past.
There's one more contributing factor this year -- the weather. Add in the fact Katrina caused a significant, although temporary (thankfully), disruption in the distribution of gasoline from the Gulf of Mexico region of the US. It also shut down a significant portion of production, temporarily. So what do you think that should mean? Good for you, if you said "the price would be expected to go up significantly".
Gasoline (in any blend) became relatively scarce three weeks ago (some Governors were even warning that their states "could run out of gas" in the aftermath of Katrina). With a scarce product, the price HAS to go up. If not, 1) the supplier will run out of the product and won't be able to meet any demand, and 2) people will want to "stock up" to weather the coming "shortage".
One good thing about higher prices is that they discourage stockpiling. That means some supply should be available at some price. Rising prices also encourage conservation. Because people know they only have so much money to spend on gasoline, they understand they need to make what they do have go farther. This is the marketplace at work.
Once the pipelines were back up and refineries moved production back on line, the prices DID start to come back down, didn't they? That's because the supply increased relative to the demand for it. People wanted x amount, but there was now more than x quantity available. In order to sell the supply on hand, a retailer or wholesaler had to lower the price to encourage consumers to buy from him (or her).
New development: Hurricane Rita is in the Gulf of Mexico, so guess what? The distinct possibility exists that supplies will be disrupted again, and in anticipation of that, the price has stopped going down -- temporarily. Wholesalers and retailers realize they'll probably have to pay more next week to get the needed supply since it could very well be limited. You should expect the price you pay will be going up because of that.
BOTTOM LINE: There may be SOME "price gouging" going on in limited instances, but the reality is the marketplace works to match demand with the available supply through price. If a particular retailer is truly "gouging" his customers, chances are they'll soon find out the guy down the street is selling gas for much less, and go there. In that case, if the "gouger" wants to sell anywhere near the normal amount of his gas, he'll have to lower the price. Remember, a full supply of $4 a gallon gas you can't sell is not worth having. What to do? Lower the price to the point people WILL buy it. End of "gouging", pure and simple -- and without Gov Co's interference.
STILL DON'T BELIEVE ME? Check out this, and this by Thomas Sowell, or this, and this by Walter E. Williams, or this by Jeff Jacoby, which leads into:
WHAT TO DO ABOUT THOSE HIGH PRICES: Not much, except conserve where you can and shop around for the best price available. In the long run, though, tell your politicians to put pressure on the EPA to limit the number of different summer blends they require. Also, push your legislators to make it less difficult to increase refining capacity. No new refineries have been built in the US in the past 25 years, due to government environmental restrictions and such. In essence, it has been easier to expand an existing refinery than build a new one. But many plants have reached the limit they can expand on their existing property, so expansion is not necessarily an option. Finally, tell them it needs to be easier to extract oil domestically (far too many people have pushed the politicians to keep oil wells away from places where crude oil is obatainable. There has been significant opposition to new drilling based on misplaced environmental concerns, as well. The oil is there, but compromises must be made to get it. That would go a long way toward neutralizing OPEC's grip on us.
So don't buy into this notion of "price gouging". What you're seeing is the marketplace in action. You may not like it, but that's what it is. If you think retailer A is selling gas for too much, shop around. Find a better price. Go there, instead. It's called "making a choice with your feet". And tell your Congressman or Congresswoman to work on the REAL problems, rather than the perceived ones.
9/21/89 Remembered
The first line of Earth, Wind and Fire's 1979 hit "September" is: "Do you remember the 21st of September..." If you lived in the Carolinas in 1989 from Charleston through Columbia, to Charlotte and on up to the Virginia line, Hugo is a name you'll never forget.
The eye wall hit the South Carolina Coast just northeast of Charleston sometime before midnight on the 21st. Fortunately, it struck at LOW tide. The 140 mile an hour winds and 20 foot storm surge caused enough damage. It maintained Hurricane strength up into Virginia. 30 miles up the coast from Charleston, the fishing village of McClellanville was virtually covered by that huge wall of water. 150 miles inland, Charlotteans were digging out from under broken limbs, toppled electric poles and downed trees for weeks.
September 21st is also the anniversary of the deadly 1938 Hurricane which struck the northeast (parts of New York and New England), claiming some 600 lives.
The eye wall hit the South Carolina Coast just northeast of Charleston sometime before midnight on the 21st. Fortunately, it struck at LOW tide. The 140 mile an hour winds and 20 foot storm surge caused enough damage. It maintained Hurricane strength up into Virginia. 30 miles up the coast from Charleston, the fishing village of McClellanville was virtually covered by that huge wall of water. 150 miles inland, Charlotteans were digging out from under broken limbs, toppled electric poles and downed trees for weeks.
September 21st is also the anniversary of the deadly 1938 Hurricane which struck the northeast (parts of New York and New England), claiming some 600 lives.
Tuesday, September 20, 2005
Military Efficiency on Display in NOLA
General Honore is a welcome breeze of fresh air! He's also an example of why the military is the one thing the Federal Government does right. With Hurricane Rita moving into the Gulf of Mexico, the Military is on site, staging for an evacuation of New Orleans again. Earlier today, the General stepped up and helped bail out Mayor Ray Nagin in a news conference, clarifying the situation and then fielding dumb questions from reporters -- some wanting to challenge what was going on, others trying to replay what did or didn't happen with Hurricane Katrina. But, you know what the General did? HE PUT THEM IN THEIR PLACES! An example:
"Question from male reporter on busing evacuees out: 'But General, that didn't work the first time...'
"Honore: 'Wait a minute. It didn't work the first time. This ain't the first time. Okay? If...we don't control Rita, you understand? So there are a lot of pieces of it that's going to be worked out. You got good public servants working through it. Let's get a little trust here, because you're starting to act like this is your problem. You are carrying the message, okay?'"
Later, another reporter tried a follow-up: "'General, a little bit more about why that's happening this time, though, and did not have that last time...'
"Honore: 'You are stuck on stupid. I'm not going to answer that question. We are going to deal with Rita.'"
WOW! Talk about telling it "like it is"! In fact, most reporters ARE permanently "stuck on stupid". Dan Rather comes to mind, for some reason...
Hat tip to RadioBlogger You can read his full post -- which includes a link to audio -- here.
"Question from male reporter on busing evacuees out: 'But General, that didn't work the first time...'
"Honore: 'Wait a minute. It didn't work the first time. This ain't the first time. Okay? If...we don't control Rita, you understand? So there are a lot of pieces of it that's going to be worked out. You got good public servants working through it. Let's get a little trust here, because you're starting to act like this is your problem. You are carrying the message, okay?'"
Later, another reporter tried a follow-up: "'General, a little bit more about why that's happening this time, though, and did not have that last time...'
"Honore: 'You are stuck on stupid. I'm not going to answer that question. We are going to deal with Rita.'"
WOW! Talk about telling it "like it is"! In fact, most reporters ARE permanently "stuck on stupid". Dan Rather comes to mind, for some reason...
Hat tip to RadioBlogger You can read his full post -- which includes a link to audio -- here.
A Bifurcated Wind
Former US Senator John Edwards sees the Katrina aftermath as an opportunity to end ALL poverty in the "Two Americas" -- or at least for the one in which he definitely does NOT reside. Naturally, this topic falls nicely in line with his current gig as director of the UNC School of Law's Center on Poverty, Work and Opportunity. And just what DOES that position entail?
So far the former Senator seems to be spending most of his time AWAY from the UNC campus, traveling around the country and speaking to various groups (the Katrina comments were made Monday in a speech to the Center for American Progress in DC). Not only that, but he's been working with questionable political organizations, and doing fundraising for political campaigns, too.
All in a day's work for this politician in his supposedly "non-partisan" position. Edwards' position is privately funded -- making him an EPA (exempt from the personnel act) employee. You can see why, since IF his position was subject to the act, then this would apply:
"... employees... may not:
- Take an active part in managing a campaign, campaign for political office or otherwise engage in political activity during working hours
- Use the position’s authority or use state funds, equipment, supplies or vehicles to support or oppose a candidate, party or issue of an election
- Promise rewards to a state employee or applicant for state employment to gain support for or a contribution to a candidate or party*
- Threaten the employment of another state employee or applicant for failure to support or contribute to a political candidate or committee*
* Such actions are subject to criminal penalties under the law
Even still, my question is just how does he get to spend so much paid time away from the office? Is campaigning and speaking to political groups part of his "non-partisan" position? Sounds like partisan politics to me.
UPDATE: (Tuesday 9/20/05 at 11:10pm) Clarified Edwards position as privately funded, not technically a "state job".
So far the former Senator seems to be spending most of his time AWAY from the UNC campus, traveling around the country and speaking to various groups (the Katrina comments were made Monday in a speech to the Center for American Progress in DC). Not only that, but he's been working with questionable political organizations, and doing fundraising for political campaigns, too.
All in a day's work for this politician in his supposedly "non-partisan" position. Edwards' position is privately funded -- making him an EPA (exempt from the personnel act) employee. You can see why, since IF his position was subject to the act, then this would apply:
"... employees... may not:
- Take an active part in managing a campaign, campaign for political office or otherwise engage in political activity during working hours
- Use the position’s authority or use state funds, equipment, supplies or vehicles to support or oppose a candidate, party or issue of an election
- Promise rewards to a state employee or applicant for state employment to gain support for or a contribution to a candidate or party*
- Threaten the employment of another state employee or applicant for failure to support or contribute to a political candidate or committee*
* Such actions are subject to criminal penalties under the law
Even still, my question is just how does he get to spend so much paid time away from the office? Is campaigning and speaking to political groups part of his "non-partisan" position? Sounds like partisan politics to me.
UPDATE: (Tuesday 9/20/05 at 11:10pm) Clarified Edwards position as privately funded, not technically a "state job".
Monday, September 19, 2005
About That Light Rail Project...
EagleSpeak notes the pie-in-the-sky Triangle Transit Authority's Light Rail project which is projected to cost $630 million dollars and has been revised and revised and revised to the point it will virtually go NOWHERE anyone WANTS to go -- prime example, RDU Airport station has been eliminated from the project. Say WHAAAAT?
He references a May Carolina Journal report about Light Rail in North Carolina, which also looks at Charlotte's proposed system. I can tell you from living in Rock Hill, that one is a boondoggle, too. I may be proven wrong, but I think years from now it will be known as Mayor Pat McCrory's White Elephant. When all is said and done, you're looking at trying to put a prom dress on a sow.
The EagleSpeak post was noted by Glenn Reynolds on Instapundit, among a lengthy list of PORK BARREL PROJECTS the blogosphere is offering up to Congress as items that could be de-funded in order to pay the costs of Katrina rebuilding.
UPDATE (Tuesday 9/20/05 at 11:30am): Thanks to Jon Ham at The Locker Room, the blog of the John Locke Foundation in Raleigh for linking to this in his post. Be sure to check out the JLF's main site, and the online version of their outstanding publication, The Carolina Journal, for some illuminating reading.
He references a May Carolina Journal report about Light Rail in North Carolina, which also looks at Charlotte's proposed system. I can tell you from living in Rock Hill, that one is a boondoggle, too. I may be proven wrong, but I think years from now it will be known as Mayor Pat McCrory's White Elephant. When all is said and done, you're looking at trying to put a prom dress on a sow.
The EagleSpeak post was noted by Glenn Reynolds on Instapundit, among a lengthy list of PORK BARREL PROJECTS the blogosphere is offering up to Congress as items that could be de-funded in order to pay the costs of Katrina rebuilding.
UPDATE (Tuesday 9/20/05 at 11:30am): Thanks to Jon Ham at The Locker Room, the blog of the John Locke Foundation in Raleigh for linking to this in his post. Be sure to check out the JLF's main site, and the online version of their outstanding publication, The Carolina Journal, for some illuminating reading.
3 1/2 Hours of Anguish vs a Sunday at the Park
Okay, so you know I'm a loyal Carolina football fan. In fact, truth be told, it doesn't matter WHICH Carolina is playing: North, South or Panthers, I have a personal connection with all three. Three years in the football program at UNC (one as a player, two as a manager), our daughter is a sophomore at USC, and we got to know quite a few Panthers players from doing radio in the Charlotte market for nearly seven years and going to games. All of that translates into an wierd weekend just past.
Saturday was UNC's home opener against Wisconsin. It was Letterman's Day, so all of us former Tar Heels were invited to meet-and-greet at the annual pregame BBQ, mingle with old friends and go to the game. That much was great. The game was odd, to say the least.
As I noted last week, the Tar Heels' defense is much improved, thankfully. They held Wisconsin to 14 points and only 304 yards, despite the Badgers having the ball for more than 10 minutes longer than Carolina during the game. But poor results on 1st down, too many penalties (12 for 115 yards), and several key dropped passes (including a sure touchdown in the 4th quarter) killed any chance for momentum -- or a comeback. So close, yet so far. Badgers, 14-5. 0-2 start for the 'Heels -- should be 2-0. This ('') close. Bummer. Again.
Meanwhile, we tried to keep up with Steve Spurrier's Gamecocks via scoreboard update at the game. Plenty of folks were saying SC could beat Alabama in Columbia (WRONG -- Bama 37-14). Guess they were reading the wrong tea leaves. Even the 'Ol Ball Coach finds it's hard to win without a reliable running game. I should have guessed what might happen when daughter told me she had opted for the beach instead of the game -- and she's a big football fan. So the "Carolinas" went 0-2 on Saturday for the second week in a row.
Last week, the New Orleans Saints screwed up our Sunday, too, stealing one from the Panthers in Charlotte. And with the winners of 3 of the last 4 Super Bowls coming to town this week, Sunday didn't look to be too promising either. Fortunately, we had outdoor plans away from the radio and tv during the majority of the game. So I listened on the way to, and back from our outing. Surprize!!!! Panthers sounded okay on the way there. It was 7-7 when I turned it off in the first quarter.
So we get back in the car and there are 3 minutes to play. Just in time to hear Brady miss-fire on a pass but interference was called on Ricky Manning of the Panthers -- it's 1st down on the Panthers 39. Uh-oh! What's the score? What's the score??? Incomplete pass. 2nd and 10, 2 1/2 minutes left... Crowd noise is loud. Panthers still must be in this one... No idea of the score, still! Then Brady passes complete for 7, but... FUMBLE!!! Who's got it??? PANTHERS' BALL!!! Mick (Mixon) says "...that's one more nail in the Patriot's coffin...". Hey, Mick, what's the SCORE??? Are we REALLY up? They go to break on the radio and he says "...Panthers, by TEN." Oh, MY! Three DeShaun Foster runs net a first down and the victory formation can run out the clock! Jake Delhomme takes a knee twice and... heh! Cats 27, Pats 17! Almost makes up for Saturday.
Maybe I should plan some activity for this Saturday, say between 12:15 and 3... That way we can catch the beginning and the last few minutes of the 'Heels at NC State. Don't laugh...it worked with the Panthers!
Saturday was UNC's home opener against Wisconsin. It was Letterman's Day, so all of us former Tar Heels were invited to meet-and-greet at the annual pregame BBQ, mingle with old friends and go to the game. That much was great. The game was odd, to say the least.
As I noted last week, the Tar Heels' defense is much improved, thankfully. They held Wisconsin to 14 points and only 304 yards, despite the Badgers having the ball for more than 10 minutes longer than Carolina during the game. But poor results on 1st down, too many penalties (12 for 115 yards), and several key dropped passes (including a sure touchdown in the 4th quarter) killed any chance for momentum -- or a comeback. So close, yet so far. Badgers, 14-5. 0-2 start for the 'Heels -- should be 2-0. This ('') close. Bummer. Again.
Meanwhile, we tried to keep up with Steve Spurrier's Gamecocks via scoreboard update at the game. Plenty of folks were saying SC could beat Alabama in Columbia (WRONG -- Bama 37-14). Guess they were reading the wrong tea leaves. Even the 'Ol Ball Coach finds it's hard to win without a reliable running game. I should have guessed what might happen when daughter told me she had opted for the beach instead of the game -- and she's a big football fan. So the "Carolinas" went 0-2 on Saturday for the second week in a row.
Last week, the New Orleans Saints screwed up our Sunday, too, stealing one from the Panthers in Charlotte. And with the winners of 3 of the last 4 Super Bowls coming to town this week, Sunday didn't look to be too promising either. Fortunately, we had outdoor plans away from the radio and tv during the majority of the game. So I listened on the way to, and back from our outing. Surprize!!!! Panthers sounded okay on the way there. It was 7-7 when I turned it off in the first quarter.
So we get back in the car and there are 3 minutes to play. Just in time to hear Brady miss-fire on a pass but interference was called on Ricky Manning of the Panthers -- it's 1st down on the Panthers 39. Uh-oh! What's the score? What's the score??? Incomplete pass. 2nd and 10, 2 1/2 minutes left... Crowd noise is loud. Panthers still must be in this one... No idea of the score, still! Then Brady passes complete for 7, but... FUMBLE!!! Who's got it??? PANTHERS' BALL!!! Mick (Mixon) says "...that's one more nail in the Patriot's coffin...". Hey, Mick, what's the SCORE??? Are we REALLY up? They go to break on the radio and he says "...Panthers, by TEN." Oh, MY! Three DeShaun Foster runs net a first down and the victory formation can run out the clock! Jake Delhomme takes a knee twice and... heh! Cats 27, Pats 17! Almost makes up for Saturday.
Maybe I should plan some activity for this Saturday, say between 12:15 and 3... That way we can catch the beginning and the last few minutes of the 'Heels at NC State. Don't laugh...it worked with the Panthers!
Friday, September 16, 2005
Only a Matter of Time
You knew it would surely happen. When the feds started handing out money to people displaced by Katrina, it was only a matter of time before someone got caught cheating the system. Tiffany Signal of Raleigh claimed to be homeless because she "lost her home" in Katrina. She conveniently didn't have ID because it was "lost in the storm", too. Her real neighbors in Raleigh told police they "knew she was going to lie to the Red Cross". Signal is now a guest of Wake County -- under $3,000 bond.
How many more "victims" out there will be found out to be scammers? Probably more than we even imagine.
How many more "victims" out there will be found out to be scammers? Probably more than we even imagine.
Thursday, September 15, 2005
A Good Day (and Night) for GW
I can't think of a day recently that has gone as well for President George W. Bush. From the outstanding performance his nominee for Chief Justice of the Supreme Court managed in the Senate over the past several days to an outstanding speech tonight in Jackson Square in New Orleans, it was a great day by all measures for the President.
Judge John Roberts proved time and again over the hours of "inquiry" before the Senate Judiciary Committee he is one of the most impressive jurists ever to be nominated to the nation's highest court. It will be interesting now to see how the votes will fall in committee and in the Senate as a whole. If it is a straight party-line vote, it will make it easier for the President to nominate whomever he chooses to replace Sandra Day O'Connor -- surely the American public will not believe Judge Roberts is in any way out of the mainstream, nor deserving of a unanimous no vote from Democrats.
Add to that, the response to the President's speech on rebuilding the Gulf states after Katrina. It appeared on television he received nearly unanimous support from the persons who were displaced by the storm. He gave them hope, leadership and confidence when they most needed it. If he can follow-through, the "Bush is to blame" crowd just lost all credibility.
It will be interesting to see how the mainstream press plays-up these events. No doubt some, especially liberal Democrats, the leftist blogocracy and a few liberal pundits will try to pooh-pooh these things and derail the momentum, but that will only serve to further highlight the disconnect between themselves and reality. The public is catching on -- and none too soon.
UPDATE 1: (Fri 9/16 at 10:50am) It seems as if the last paragraph was right on the money. Right away AP tried throwing cold water on the speech. I loved Jason's reaction at Polipundit on the AP story: "...the actual story quickly degenerates into a revolving conundrum of liberal emoting and partisan-Democrat talking points...". Also, the Democratic "leadership" in Congress jumped on the anti-Bush bandwagon out of the box, led by Harry Reid and Nancy Pelosi. The lib's playbook is as obvious as Ohio State's under Woody Hayes in the '50's and '60's (off-tackle right, off-tackle left...): "Bush is at fault, Bush is incompetent, Bush can't ever hope to get it right...". In reality, if Bill Clinton delivered the same speech last night, the Dems would be hailing it as the greatest speech sincethe Sermon on the Mount(Oops, can't use religious metaphors. Secular humanisim and all, you know...) "I Have a Dream".
UPDATE 2: (Sat 9/17/05 at 7:30am): As for how well Judge Roberts did, Beldar does some LLL Dem projecting.
Judge John Roberts proved time and again over the hours of "inquiry" before the Senate Judiciary Committee he is one of the most impressive jurists ever to be nominated to the nation's highest court. It will be interesting now to see how the votes will fall in committee and in the Senate as a whole. If it is a straight party-line vote, it will make it easier for the President to nominate whomever he chooses to replace Sandra Day O'Connor -- surely the American public will not believe Judge Roberts is in any way out of the mainstream, nor deserving of a unanimous no vote from Democrats.
Add to that, the response to the President's speech on rebuilding the Gulf states after Katrina. It appeared on television he received nearly unanimous support from the persons who were displaced by the storm. He gave them hope, leadership and confidence when they most needed it. If he can follow-through, the "Bush is to blame" crowd just lost all credibility.
It will be interesting to see how the mainstream press plays-up these events. No doubt some, especially liberal Democrats, the leftist blogocracy and a few liberal pundits will try to pooh-pooh these things and derail the momentum, but that will only serve to further highlight the disconnect between themselves and reality. The public is catching on -- and none too soon.
UPDATE 1: (Fri 9/16 at 10:50am) It seems as if the last paragraph was right on the money. Right away AP tried throwing cold water on the speech. I loved Jason's reaction at Polipundit on the AP story: "...the actual story quickly degenerates into a revolving conundrum of liberal emoting and partisan-Democrat talking points...". Also, the Democratic "leadership" in Congress jumped on the anti-Bush bandwagon out of the box, led by Harry Reid and Nancy Pelosi. The lib's playbook is as obvious as Ohio State's under Woody Hayes in the '50's and '60's (off-tackle right, off-tackle left...): "Bush is at fault, Bush is incompetent, Bush can't ever hope to get it right...". In reality, if Bill Clinton delivered the same speech last night, the Dems would be hailing it as the greatest speech since
UPDATE 2: (Sat 9/17/05 at 7:30am): As for how well Judge Roberts did, Beldar does some LLL Dem projecting.
Wednesday, September 14, 2005
Missing In Action Again
There's a Hurricane hitting the United States and where is George W. Bush? He's off rubbing elbows with foreigners at the United Nations. This man never learns, does he? Two weeks ago he was out west meeting with a veterans group when Katrina came ashore. Now he's in New York while North Carolina is threatened. Can't our President prioritize any better than that? I mean, leaving the emergency management to state and local authorities -- has he no shame? Everyone knows the President must call every shot. No one can exist without guidance from Washington. And where's FEMA when you need them? They're in Louisiana and Mississippi and Aladambama, for heaven's sake! Can't they get better organized than that? Didn't they learn from their previous mistakes? What buffons! Fire them all! Impeach Bush! When will the cavalry arrive to save the day? We're waiting!
In case you didn't GET IT, the above bloviating is a parody. Unfortunately, it's not inconceivable these days that such idiotic ranting might just appear on a leftist blog -- or even in the MSM -- or be spoken by a liberal Democrat politician.
By the way the local emergency management folks, mayors, county and state officials are doing the jobs they're supposed to do, thank you very much. They'll put in a call for help if and when they need it, and not blame others for their own errors. It will be a marked difference from two weeks ago, but the mainstream press won't make a big deal out of it. Just watch them and see. I hope I am wrong.
In case you didn't GET IT, the above bloviating is a parody. Unfortunately, it's not inconceivable these days that such idiotic ranting might just appear on a leftist blog -- or even in the MSM -- or be spoken by a liberal Democrat politician.
By the way the local emergency management folks, mayors, county and state officials are doing the jobs they're supposed to do, thank you very much. They'll put in a call for help if and when they need it, and not blame others for their own errors. It will be a marked difference from two weeks ago, but the mainstream press won't make a big deal out of it. Just watch them and see. I hope I am wrong.
Twisted Logic
Two of the most elaborately twisted notions have been and are continuing to be trumpeted as conventional wisdom by liberal Democrats, the left-wing blogocracy and the MSM. It's time to address these things clearly and nuke the CW. To wit:
1 - The observation: The vast majority of victims of Hurricane Katrina were poor black people. The conclusion: This shows we've not been doing enough to help stamp out poverty in this country. Sample of an actual quote: "...which is why we need to do some work on the income disparity, asset building. There's a whole group of things we need to do to help with that problem." - former Senator John Edwards, on Hardball with Chris Matthews. Response: Collectively, we have spent over 6.5 Trillion dollars (GAO figures) in the "war on poverty" since 1964. HELLO!!! It's NOT going to help throwing MORE money at the problem. Let's figure out how to help the poor access the main stream rather than teaching them to keep putting their hands out. Part of the problem that so many poor folks stayed behind is they've been taught to wait for Government to help them, rather than learning self-reliance and how to be self-sufficient. In fact, the conclusion really is: This shows we've been doing too much to teach people to be dependent on Government, and keep them in a perpetual state of poverty.
2 - The Observation: The the levees were insufficient and were a disaster waiting to happen. The Conclusion: The feds screwed-up by not paying attention to a potential problem (that EVERYONE knew about) and not allocating enough money to fix it before it became the disaster that's been waiting to happen all these years. Sample of an actual quote: "...the culprit is not the president but government-wide resistance to investing long-term in projects such as flood control." That quote comes from Michael Parker, former assistant secretary of the army for civil works. Response: In fact, the Environmental movement in this country prevented the Army Corps of Engineers from "fixing" or "preventing" this problem, beginning years ago. See here and here The lawsuit by an environmental group called "Save Our Wetlands" in 1975, prevented the Army Corps of Engineers from building a series of floodgates which could have prevented exactly the kind of flooding which occurred after Katrina. In fact, the conclusion really is: The insistence by environmentalists of valuing "wetlands" over humans has proven deadly in this case.
They can pretend all they want that their version of the "truth" is correct, and that only their agenda will serve the people. Unfortunately, there are obviously no mirrors in the "reality based" community, or else they'd be able to see their own agenda for what it really is -- a poison pill for America's future.
1 - The observation: The vast majority of victims of Hurricane Katrina were poor black people. The conclusion: This shows we've not been doing enough to help stamp out poverty in this country. Sample of an actual quote: "...which is why we need to do some work on the income disparity, asset building. There's a whole group of things we need to do to help with that problem." - former Senator John Edwards, on Hardball with Chris Matthews. Response: Collectively, we have spent over 6.5 Trillion dollars (GAO figures) in the "war on poverty" since 1964. HELLO!!! It's NOT going to help throwing MORE money at the problem. Let's figure out how to help the poor access the main stream rather than teaching them to keep putting their hands out. Part of the problem that so many poor folks stayed behind is they've been taught to wait for Government to help them, rather than learning self-reliance and how to be self-sufficient. In fact, the conclusion really is: This shows we've been doing too much to teach people to be dependent on Government, and keep them in a perpetual state of poverty.
2 - The Observation: The the levees were insufficient and were a disaster waiting to happen. The Conclusion: The feds screwed-up by not paying attention to a potential problem (that EVERYONE knew about) and not allocating enough money to fix it before it became the disaster that's been waiting to happen all these years. Sample of an actual quote: "...the culprit is not the president but government-wide resistance to investing long-term in projects such as flood control." That quote comes from Michael Parker, former assistant secretary of the army for civil works. Response: In fact, the Environmental movement in this country prevented the Army Corps of Engineers from "fixing" or "preventing" this problem, beginning years ago. See here and here The lawsuit by an environmental group called "Save Our Wetlands" in 1975, prevented the Army Corps of Engineers from building a series of floodgates which could have prevented exactly the kind of flooding which occurred after Katrina. In fact, the conclusion really is: The insistence by environmentalists of valuing "wetlands" over humans has proven deadly in this case.
They can pretend all they want that their version of the "truth" is correct, and that only their agenda will serve the people. Unfortunately, there are obviously no mirrors in the "reality based" community, or else they'd be able to see their own agenda for what it really is -- a poison pill for America's future.
Tuesday, September 13, 2005
Intellectual Elite? Riiiiight!
According to the Raleigh News and Observer, this past weekend an inebriated UNC-Chapel Hill student, cited for his rude public behavior, walked 50 feet and did the same thing again -- and was arrested again. They say the definition of insanity is doing the same thing over and over again hoping for a different result. Don't you know his parents are proud of him for the "recognition" he has received at college. Guess you could say he wanted to "leave his mark" when he left. Only in Chapel Hill.
Announcer-Cheerleaders
Being a follower of the Carolina Panthers has its ups and downs. As the 2005 regular season approached, Panther fans were getting jazzed-up for great things -- after all, with healthy players back, a good draft and a Super Bowl appearance two years ago, greatness seemed their due. It still could be, but you still have to play one game at a time. Sixteen times. Before the playoffs. Before the Super Bowl.
Last Sunday, the Panthers opened at home against the New Orleans Saints. If you read the sports pages or saw the reports (or even the game) on TV, you know the Saints won 23-20. A downer for the Panthers and their fans. Congratulations to the Saints on the win. Their fans deserved it.
What? Come again? Their fans DESERVED it? That's like rubbing salt in an open wound if you're on the Panthers bandwagon. Well it was the theme of the day on the Fox Sports broadcast of the game. Obviously, if you are a mindless sports announcer like Ron Pitts and Tim Ryan on FOX sports, you truly believe that was the case. Otherwise, why would Pitts and Ryan -- especially Ryan continue to sing that song all game long?
I can understand saying the Saints players may want to play extra hard to show their support for the folks back in N'awlins, and to try to bring some joy to them in an otherwise tough time. But just say so and get off the dime! Quit reminding us of Katrina at every turn -- which it seemed painfully obvious they were trying to do.
Granted, such talk would be understandable if they were on the Saints Radio Network, since they'd be paid to promote the local team. But not on a supposedly "independent" telecast. I may be wrong, but I don't think Fox has an ownership stake in the Saints. Maybe I'm wrong, but I also don't recall hearing where Fox Sports said its announcers should blatantly favor one team over the other on their broadcasts this season. Maybe I missed that.
Pitts and Ryan could not have sounded more caught-up in the "let's help the Katrina evacuees by being pro-Saints" mindset if they'd have said such things as (these are made up, but not far off what was actually said!):
"He must be thinking of the folks back home with that catch..." or
"Everyone in America's probably hoping the Saints can win..."
It was ALMOST that bad. Truth be told, they really said things like: "This could bring a big lift to the people back home." and "You gotta love the way the Saints are playing so hard for their fans." I almost threw a shoe through the tube.
I sure hope the Fox Sports "suits" were paying attention. These two hopefully won't get to broadcast any more Saints games this year. And a note to other FOX announcers: How about laying off the "let's help cheer-up the Saints fans" kool-aid. IT'S A GAME!!! These guys get PAID to play it. They're really NOT playing it for their fans, they're playing it to keep themselves EMPLOYED. Oh, and by the way, at least half of your audience is pulling for the OTHER team.
Last Sunday, the Panthers opened at home against the New Orleans Saints. If you read the sports pages or saw the reports (or even the game) on TV, you know the Saints won 23-20. A downer for the Panthers and their fans. Congratulations to the Saints on the win. Their fans deserved it.
What? Come again? Their fans DESERVED it? That's like rubbing salt in an open wound if you're on the Panthers bandwagon. Well it was the theme of the day on the Fox Sports broadcast of the game. Obviously, if you are a mindless sports announcer like Ron Pitts and Tim Ryan on FOX sports, you truly believe that was the case. Otherwise, why would Pitts and Ryan -- especially Ryan continue to sing that song all game long?
I can understand saying the Saints players may want to play extra hard to show their support for the folks back in N'awlins, and to try to bring some joy to them in an otherwise tough time. But just say so and get off the dime! Quit reminding us of Katrina at every turn -- which it seemed painfully obvious they were trying to do.
Granted, such talk would be understandable if they were on the Saints Radio Network, since they'd be paid to promote the local team. But not on a supposedly "independent" telecast. I may be wrong, but I don't think Fox has an ownership stake in the Saints. Maybe I'm wrong, but I also don't recall hearing where Fox Sports said its announcers should blatantly favor one team over the other on their broadcasts this season. Maybe I missed that.
Pitts and Ryan could not have sounded more caught-up in the "let's help the Katrina evacuees by being pro-Saints" mindset if they'd have said such things as (these are made up, but not far off what was actually said!):
"He must be thinking of the folks back home with that catch..." or
"Everyone in America's probably hoping the Saints can win..."
It was ALMOST that bad. Truth be told, they really said things like: "This could bring a big lift to the people back home." and "You gotta love the way the Saints are playing so hard for their fans." I almost threw a shoe through the tube.
I sure hope the Fox Sports "suits" were paying attention. These two hopefully won't get to broadcast any more Saints games this year. And a note to other FOX announcers: How about laying off the "let's help cheer-up the Saints fans" kool-aid. IT'S A GAME!!! These guys get PAID to play it. They're really NOT playing it for their fans, they're playing it to keep themselves EMPLOYED. Oh, and by the way, at least half of your audience is pulling for the OTHER team.
Sunday, September 11, 2005
Silver Lining in a Black Cloud
The North Carolina Tar Heel football team opened on the road at Georgia Tech Saturday, but fell to the favored Jackets 27-21. Tech has a solid team, give them credit, and Chan Gailey and his staff had them well prepared to go against Carolina. But, despite several series where the Yellow Jackets moved the ball well, toward the end of the first half and for the last half of the fourth quarter the Tar Heel defense rose to the occasion, stopping Tech in its tracks consistently. The tough play on D helped boost the offense to three -- and nearly four -- scores in just ten minutes of game time.
Unfortunately, there were too many mistakes on offense -- 3 interceptions, a few dropped passes, some missed blocking assignments, and other procedural matters which should be cleared up in practice. However, the Heels did have two shots to win the game in the last 3 and a half minutes, and any team would love to have similar circumstances.
Matt Baker will be better than he was against Tech, and once he gets used to game speed, he'll become more comfortable. For a guy who supposedly can't run, he did a pretty good job of avoiding the rush and finding the open receiver. He even scored the first TD for Carolina on an 11 yard QB draw.
James "Cooter" Arnold and Barrington Edwards looked good in the early going running the ball, but both were stymied in the second half. For Carolina to win more than a few games this season, those two will need to kick it in to the next gear.
Carolina's defense gave up a lot of yards again, but played well enough to keep the Heels in the game. They also forced Tech into several straight "three and outs" during the comeback in the second half. This defense is better than last year's. If the offense can keep them off the field better (by keeping drives going) than they did today, the numbers will look better.
This year's special teams seem to be as solid as they've ever been.
The old saw is the biggest improvement in a season comes between the first and second games. Let's hope that's true. It will be needed next Saturday when Carolina hosts Wisconsin. Looking forward to meeting up with other former Carolina Lettermen for Lettermen's Day at Kenan Stadium -- that's always fun.
Unfortunately, there were too many mistakes on offense -- 3 interceptions, a few dropped passes, some missed blocking assignments, and other procedural matters which should be cleared up in practice. However, the Heels did have two shots to win the game in the last 3 and a half minutes, and any team would love to have similar circumstances.
Matt Baker will be better than he was against Tech, and once he gets used to game speed, he'll become more comfortable. For a guy who supposedly can't run, he did a pretty good job of avoiding the rush and finding the open receiver. He even scored the first TD for Carolina on an 11 yard QB draw.
James "Cooter" Arnold and Barrington Edwards looked good in the early going running the ball, but both were stymied in the second half. For Carolina to win more than a few games this season, those two will need to kick it in to the next gear.
Carolina's defense gave up a lot of yards again, but played well enough to keep the Heels in the game. They also forced Tech into several straight "three and outs" during the comeback in the second half. This defense is better than last year's. If the offense can keep them off the field better (by keeping drives going) than they did today, the numbers will look better.
This year's special teams seem to be as solid as they've ever been.
The old saw is the biggest improvement in a season comes between the first and second games. Let's hope that's true. It will be needed next Saturday when Carolina hosts Wisconsin. Looking forward to meeting up with other former Carolina Lettermen for Lettermen's Day at Kenan Stadium -- that's always fun.
Friday, September 09, 2005
Not So True After All (Lying Liars, Part Deux)
Before we get too far afield, we should commend the Washington Post for blowing apart (pun intended) the recently trumpeted "truth" that the Bush Administration "cut" funding which would have reinforced the levees surrounding New Orleans, and thereby caused the flooding of city in the aftermath of Katrina. Some key points in Thursday's Page One article:
"But overall, the Bush administration's funding requests for the key New Orleans flood-control projects for the past five years were slightly higher than the Clinton administration's for its past five years. Lt. Gen. Carl Strock, the chief of the Corps, has said that in any event, more money would not have prevented the drowning of the city, since its levees were designed to protect against a Category 3 storm, and the levees that failed were already completed projects." [Emphasis mine]
Kudos also to the New York Times, which leads today with this factual presentation of how the relief efforts were snagged by political decision-makers, who simultaneously "begged" publically for the exact help they were keeping away.
"But overall, the Bush administration's funding requests for the key New Orleans flood-control projects for the past five years were slightly higher than the Clinton administration's for its past five years. Lt. Gen. Carl Strock, the chief of the Corps, has said that in any event, more money would not have prevented the drowning of the city, since its levees were designed to protect against a Category 3 storm, and the levees that failed were already completed projects." [Emphasis mine]
Kudos also to the New York Times, which leads today with this factual presentation of how the relief efforts were snagged by political decision-makers, who simultaneously "begged" publically for the exact help they were keeping away.
Partisan Amnesia (or More Lying Liars)
New York Senator Hillary Clinton claims the aftermath of Hurricane Katrina show the Bush Administration has undermined the productiveness FEMA had shown under her husband's administration. Todays Issues and Insights column in Investors Business Daily points to how well disgracefully inept FEMA handled the aftermath of Hurricane Floyd in 1999.
For supporting documents on just how "well" FEMA handled Floyd, see here and here. For an opinion on the long-term usefulness of FEMA see here.
For supporting documents on just how "well" FEMA handled Floyd, see here and here. For an opinion on the long-term usefulness of FEMA see here.
Thursday, September 08, 2005
Not OK to be Non-PC
Perhaps the more stories we hear about the rediculous application of "Political Correctness" in a time of dire emergency may begin to help tip the balance back the other way. Surely we cannot survive being any more PC than we already are.
One of the most asinine revelations in the aftermath of Katrina is the story of professional firefighters volunteering their services to FEMA and being made to undergo the (apparently) standard battery of post-hire seminars reqired in normal times before NOT being allowed to do the job they normally do -- save people. "Lundy and Calhoun's first task was an eight-hour course on sexual harassment and equal opportunity employment procedures..." It's sheer idiotic bureaucratic BS.
We owe a sarcastic "thank you" to the wacko left in this country, and the spineless twits in Congress whom they've pressured into coming up with laws that require such pap in the first place. Then again you'd think FEMA would at least be able to understand the difference between permanent employment and voluntary help in a crisis. They ought to fire the idiots who thought of this step in the process. Sounds just like the TSA's not being able to "profile". Wow, I hope you feel safer in the case of disaster or if you are going to fly. I sure don't.
One of the most asinine revelations in the aftermath of Katrina is the story of professional firefighters volunteering their services to FEMA and being made to undergo the (apparently) standard battery of post-hire seminars reqired in normal times before NOT being allowed to do the job they normally do -- save people. "Lundy and Calhoun's first task was an eight-hour course on sexual harassment and equal opportunity employment procedures..." It's sheer idiotic bureaucratic BS.
We owe a sarcastic "thank you" to the wacko left in this country, and the spineless twits in Congress whom they've pressured into coming up with laws that require such pap in the first place. Then again you'd think FEMA would at least be able to understand the difference between permanent employment and voluntary help in a crisis. They ought to fire the idiots who thought of this step in the process. Sounds just like the TSA's not being able to "profile". Wow, I hope you feel safer in the case of disaster or if you are going to fly. I sure don't.
Wednesday, September 07, 2005
Political Opportunism - Part 3
Quick... name the two biggest political stories of today. Right, Hurricane Katrina and John Roberts. What, other than the coincidence they're in the news at the same point in time, do they have in common? Nothing, you say? As Ed McMahon ,might have told Johnny Carson, "Wrong-oh, M-S-M Breath". Leave it to the DemocRATS to figure how to use an act of nature against a nominee to the Supreme Court. It's all in black and white on Boston.com (the web site of the Boston Globe):
"The scenes of devastation featuring primarily poor African-American residents in New Orleans have highlighted the widening gap between rich and poor, said Senator Edward M. Kennedy, Democrat of Massachusetts.
"With Roberts having urged a narrow interpretation of civil rights laws in the past, Senate Democrats will link the scenes of economic hardship with the constitutional and legal issues that surround efforts to address racial and economic inequalities, he said."
Do Senator Kennedy and his Democrat colleagues automatically believe ALL poor people are black? Does he only see things as black and white and as opportunities to divide rather than unite?
What. A. Load. Of. Crap.
"The scenes of devastation featuring primarily poor African-American residents in New Orleans have highlighted the widening gap between rich and poor, said Senator Edward M. Kennedy, Democrat of Massachusetts.
"With Roberts having urged a narrow interpretation of civil rights laws in the past, Senate Democrats will link the scenes of economic hardship with the constitutional and legal issues that surround efforts to address racial and economic inequalities, he said."
Do Senator Kennedy and his Democrat colleagues automatically believe ALL poor people are black? Does he only see things as black and white and as opportunities to divide rather than unite?
What. A. Load. Of. Crap.
Come Again?
If anyone can provide the proof of this "rumor", let me know. Heard yesterday that North Carolina Governor Mike Easley and his family spent the Labor Day Weekend at their beach house in Brunswick County -- and got there and back by state helicopter. This was just days after Easley warned state residents of dwindling fuel supplies and pleaded for voluntary conservation methods. Not only that, but he asked state agencies to shut-down all "non-essential travel" using state vehicles. Sounds like it was too much for him to ask his family to conserve.
Political Opportunism - Part 2
Raleigh News-Talk radio station WPTF has been saying all day that some North Carolina politicians are talking about eliminating the State tax on gasoline -- for a month. Meanwhile, the price of gasoline is already dropping due to market forces. Again, LET THE MARKET FORCES HANDLE IT!!!! Not that I believe the state should charge THAT MUCH per gallon of gas in tax, but artificially lowering the price will drive up demand in a time where supply is still tight, thereby driving up the price again. Really, these politicians need to understand how economics works.
Political Opportunism - Part 1
Former Vice Presidential candidate and former Senator John Edwards continues to see "Two Americas". In today's Raleigh News and Observer, Edwards is quoted as applying his 2004 campaign theme to the Hurricane Katrina aftermath, "We see the poor and working class of New Orleans who don't own a car and couldn't evacuate to hotels or families far from the target of Katrina... We see the suffering of families who lived from paycheck to paycheck and who followed the advice of officials and went to shelters at the Civic Center or the Superdome or stayed home to protect their possessions... We have been too slow to act in the face of the misery of our brothers and sisters. This is an ugly and horrifying wake-up call to America." So what does he plan to do about it? Start a lecture series on the subject at the UNC Law School, where he is the current Director of the Center on Poverty, Work and Opportunity. I'll bet that really cheers-up the folks who lost everything in the storm, huh? You can hear them now, "Man, that John Edwards REALLY CARES! He's worried about ME! Now I don't have to go through this ALONE!"
Sunday, September 04, 2005
We Need a New Chief
As if he needed more distractions in the aftermath of Hurricane Katrina, President Bush must now find a replacement for Chief Justice William Rehnquist, who passed away Saturday night at his home in Virginia.
Naturally, leftist lunatics wouldn't like it (leading most Democratic Senators to also howl) so it stands to reason Justice Antonin Scalia would make an outstanding choice as Chief. That's also my personal preference -- and then Mr. Bush could fill Scalia's seat with someone like Edith Jones or Edith Brown Clement or Michael Luttig.
We'll see how this plays out. As it stands, I'd think someone needs to be appointed Chief (and approved) before the October session begins.
UPDATE: Monday morning, President Bush announced he was shifting the nomination of Judge John Roberts from the Sandra Day O'Connor vacancy to the vacancy of the late Chief Justice William Rehnquist, as the new Chief. Good move. If he's confirmed before October 3rd, we'll have a full complement of Justices to begin the "Roberts Court" (O'Connor will stay on until her replacement is confirmed).
Naturally, leftist lunatics wouldn't like it (leading most Democratic Senators to also howl) so it stands to reason Justice Antonin Scalia would make an outstanding choice as Chief. That's also my personal preference -- and then Mr. Bush could fill Scalia's seat with someone like Edith Jones or Edith Brown Clement or Michael Luttig.
We'll see how this plays out. As it stands, I'd think someone needs to be appointed Chief (and approved) before the October session begins.
UPDATE: Monday morning, President Bush announced he was shifting the nomination of Judge John Roberts from the Sandra Day O'Connor vacancy to the vacancy of the late Chief Justice William Rehnquist, as the new Chief. Good move. If he's confirmed before October 3rd, we'll have a full complement of Justices to begin the "Roberts Court" (O'Connor will stay on until her replacement is confirmed).
Friday, September 02, 2005
Not Solving the Problem 102
The first semester course in marketplace economics (see post below)obviously is beyond the level of Governor "Easy" Mike Easley and Attorney General Roy "I wanna be like Mike" Cooper in North Carolina. The Governor is fanning the flames of panic by saying North Carolina might "run out of gas". He's asking "all North Carolinians to conserve gas", has suspended all "non-essential" state travel (using government transportation), and has implored the state's citizens to "carpool" and "limit non-essential road trips".
Meanwhile, Cooper said yesterday he wanted to know about "price gouging" spotted by consumers, and warned that his staff would "look into" those reports. Fortunately, he may not have dozed off in economics class as much as it appears Easley did. To his credit, Cooper did note the current gas price increases "were probably not illegal". Nonetheless, it makes consumers believe there MAY be some shenanigans going on, which further stirs the pot. Except for a few odd-ball cases when the fuel price is way out of line with what other stations in a general area are charging, it still doesn't mean there is anything going on except the marketplace finding its equilibrium price.
Needless to say, it would be best if public pressure on these two state officials does not cause them to make a bad situation worse: The Governor COULD declare a "disaster", which would allow Cooper to go after "price gougers". That would set into motion an artificial marketplace where demand would continue to rise, prices couldn't change enough to slow the demand, and a shortage would definitely occur. Let's hope it doesn't come to that.
Meanwhile, Cooper said yesterday he wanted to know about "price gouging" spotted by consumers, and warned that his staff would "look into" those reports. Fortunately, he may not have dozed off in economics class as much as it appears Easley did. To his credit, Cooper did note the current gas price increases "were probably not illegal". Nonetheless, it makes consumers believe there MAY be some shenanigans going on, which further stirs the pot. Except for a few odd-ball cases when the fuel price is way out of line with what other stations in a general area are charging, it still doesn't mean there is anything going on except the marketplace finding its equilibrium price.
Needless to say, it would be best if public pressure on these two state officials does not cause them to make a bad situation worse: The Governor COULD declare a "disaster", which would allow Cooper to go after "price gougers". That would set into motion an artificial marketplace where demand would continue to rise, prices couldn't change enough to slow the demand, and a shortage would definitely occur. Let's hope it doesn't come to that.
Thursday, September 01, 2005
Not Solving the Problem 101
Liberal politicians are calling for all sorts of "remedies" to the current gasoline "crisis" -- which has been caused by a natural disaster's interruption of the petroleum supply lines, and NOT caused by the evil petroleum pals of George W. Bush.
In no particular order, Florida Senator Bill Nelson (D) is calling for a "price freeze" on gasoline. New York Senator Chuck Schumer (D) is calling for the President to empty the petroleum reserve (a 60 day supply) to help ease the crisis. New York Senator Hillary Clinton (D) is calling for a congressional hearings (and likely prosecution) of "price gougers". Wow, the left REALLY CARES!!!!
Get. A. Grip. First, note that none of these "ideas" will help get more gasoline into the pipelines coming from the Gulf Coast. Only the repair of any damage to the Gulf Coast refineries and breaks in the pipeline system, plus restoration of power in any of those immediate areas now without it will fix that. Secondly, building more refineries elsewhere would be an enormous help in easing the east coast's dependence on one primary supply area -- not to mention easing the supply problems faced in summer months by refiners having to make a laundry list of different blends of gasoline to meet environmental dictates in different areas. More refineries = better ability to handle demand. To that end, the EPA chief yesterday relented and will allow a temporary elimination of the requirements for certain blend fuels in certain areas, so that gasoline already available can be shipped around the country to areas where demand is most critical. HOWEVER... I digress. Back to the "CRISIS"...
A self-fulfilling prophecy is helping to add to the fuel crisis. All of this talk of a "gasoline shortage" by the media (to be perfectly clear, it is a SUPPLY CRISIS) is also causing normally rational people to hurry out to the gas pumps to fill up, thereby pushing up demand (which is also increasing the upward pressure on prices). Now back to Bill Nelson's idea:
Believe it or not, freezing prices when demand is soaring will cause the demand to further rise. Tinkering with the marketplace's natural regulation of price due to fluctuation of supply and demand will cause more problems. Left alone, and IF the news media had been honest (portrayed the actual "crisis" properly or at least sought out an economist without an agenda to explain what was going on) and politicians stopped trying to fan the flames of a trumped-up crisis to get back at Bush, here's what would have happened:
1 - News comes that pipelines are shut-off by storm, and people can expect supplies to run low -- but things are being done to help alleviate the problem in the short-term (EPA rescinds blend requirements temporarily, refineries in other areas will help direct fuel to areas running low). Price starts to rise because people will go fill-up cars (natural reaction to the news of a pending shortage), raising demand in the face of shortage, but as the prices rise, maybe some will not fill-up ALL of their cars or fill all of their gas gans at home hoping to "stock-up". Remember, they're told it will likely be a TEMPORARY situation.
2 - People who think the price is too high won't use as much (may decide to car-pool, ride the bus if possible, quit driving as much by planning their trips out to the store, etc.). This will help slow demand, thereby putting a natural brake on the upward price pressure.
3 - The pipelines go back on at a lessened capacity. More supply will help ease price pressure as well, but people will likely continue to keep their tanks full, which keeps some demand pressure on the available supply -- prices stay up.
4 - Other measures help ease the crisis on supply, lessening demand as well, as people breathe a sigh of relief... prices start to come down.
5 - Supply lines are back up to 100%. Prices will continue to fall to an equilibrium level below the level they were before the crisis.
Don't expect the actual cycle to be this simple. Panic puts additional pressure on the supply as people think they better get it at whatever price before it's all gone!!! If you add price controls to the mix, the demand (at whatever that price) will be artificially high, which will cause the supply to run lower and lower. In reality, higher prices have a downward pressure on demand, as it becomes too expensive to use as much as you're used to using.
Let's hope the Left's effort to paint Bush as the cause of all this doesn't continue to spiral out of control and cause us to do irreparable harm to our economy.
As for Schumer's idea, the President has already said he will make available some of the petroleum reserve to help out. BUT THIS IS A DELIVERY crisis, not a shortage of crude oil. This will have no effect at all on alleiviating the supply line problem.
Hillary's idea will put artificial pressure on the marketplace. The natural pricing pressure from artificially increased demand -- in this case, from the "we have a CRISIS here" mentality -- and a temporary shortage in the supply (30 million gallons a day less due to the pipeline problems), pushes the price up. But scared operators (who don't want to be prosecuted for "price gouging") will artificially keep the price lower than the marketplace would equalize it, thereby working like price controls to cause the supply to dwindle quicker and pose a bigger problem.
In case you are wondering, this is not some pirated piece. I do have a degree in Business, and I DO understand the marketplace and supply and demand. I also have spent 28 years in the media and understand the pressure to focus the story on the unusual and/or in the worst light.
It remains to be seen whether sanity wills out or not.
In no particular order, Florida Senator Bill Nelson (D) is calling for a "price freeze" on gasoline. New York Senator Chuck Schumer (D) is calling for the President to empty the petroleum reserve (a 60 day supply) to help ease the crisis. New York Senator Hillary Clinton (D) is calling for a congressional hearings (and likely prosecution) of "price gougers". Wow, the left REALLY CARES!!!!
Get. A. Grip. First, note that none of these "ideas" will help get more gasoline into the pipelines coming from the Gulf Coast. Only the repair of any damage to the Gulf Coast refineries and breaks in the pipeline system, plus restoration of power in any of those immediate areas now without it will fix that. Secondly, building more refineries elsewhere would be an enormous help in easing the east coast's dependence on one primary supply area -- not to mention easing the supply problems faced in summer months by refiners having to make a laundry list of different blends of gasoline to meet environmental dictates in different areas. More refineries = better ability to handle demand. To that end, the EPA chief yesterday relented and will allow a temporary elimination of the requirements for certain blend fuels in certain areas, so that gasoline already available can be shipped around the country to areas where demand is most critical. HOWEVER... I digress. Back to the "CRISIS"...
A self-fulfilling prophecy is helping to add to the fuel crisis. All of this talk of a "gasoline shortage" by the media (to be perfectly clear, it is a SUPPLY CRISIS) is also causing normally rational people to hurry out to the gas pumps to fill up, thereby pushing up demand (which is also increasing the upward pressure on prices). Now back to Bill Nelson's idea:
Believe it or not, freezing prices when demand is soaring will cause the demand to further rise. Tinkering with the marketplace's natural regulation of price due to fluctuation of supply and demand will cause more problems. Left alone, and IF the news media had been honest (portrayed the actual "crisis" properly or at least sought out an economist without an agenda to explain what was going on) and politicians stopped trying to fan the flames of a trumped-up crisis to get back at Bush, here's what would have happened:
1 - News comes that pipelines are shut-off by storm, and people can expect supplies to run low -- but things are being done to help alleviate the problem in the short-term (EPA rescinds blend requirements temporarily, refineries in other areas will help direct fuel to areas running low). Price starts to rise because people will go fill-up cars (natural reaction to the news of a pending shortage), raising demand in the face of shortage, but as the prices rise, maybe some will not fill-up ALL of their cars or fill all of their gas gans at home hoping to "stock-up". Remember, they're told it will likely be a TEMPORARY situation.
2 - People who think the price is too high won't use as much (may decide to car-pool, ride the bus if possible, quit driving as much by planning their trips out to the store, etc.). This will help slow demand, thereby putting a natural brake on the upward price pressure.
3 - The pipelines go back on at a lessened capacity. More supply will help ease price pressure as well, but people will likely continue to keep their tanks full, which keeps some demand pressure on the available supply -- prices stay up.
4 - Other measures help ease the crisis on supply, lessening demand as well, as people breathe a sigh of relief... prices start to come down.
5 - Supply lines are back up to 100%. Prices will continue to fall to an equilibrium level below the level they were before the crisis.
Don't expect the actual cycle to be this simple. Panic puts additional pressure on the supply as people think they better get it at whatever price before it's all gone!!! If you add price controls to the mix, the demand (at whatever that price) will be artificially high, which will cause the supply to run lower and lower. In reality, higher prices have a downward pressure on demand, as it becomes too expensive to use as much as you're used to using.
Let's hope the Left's effort to paint Bush as the cause of all this doesn't continue to spiral out of control and cause us to do irreparable harm to our economy.
As for Schumer's idea, the President has already said he will make available some of the petroleum reserve to help out. BUT THIS IS A DELIVERY crisis, not a shortage of crude oil. This will have no effect at all on alleiviating the supply line problem.
Hillary's idea will put artificial pressure on the marketplace. The natural pricing pressure from artificially increased demand -- in this case, from the "we have a CRISIS here" mentality -- and a temporary shortage in the supply (30 million gallons a day less due to the pipeline problems), pushes the price up. But scared operators (who don't want to be prosecuted for "price gouging") will artificially keep the price lower than the marketplace would equalize it, thereby working like price controls to cause the supply to dwindle quicker and pose a bigger problem.
In case you are wondering, this is not some pirated piece. I do have a degree in Business, and I DO understand the marketplace and supply and demand. I also have spent 28 years in the media and understand the pressure to focus the story on the unusual and/or in the worst light.
It remains to be seen whether sanity wills out or not.
Lunacy on the Left
Former Clinton aide Sidney Blumenthal has lashed out at President Bush in an online screed based in Germany. This should come as no surprise to anyone, as the European left has as much disdain for President Bush as the American left does -- possibly more. In fact, the German environmental minister lashed out publically against the President and the people of the United States earlier this week, saying the failure of the US to sign the Kyoto Protocol is the primary reason Katrina caused such devastation to Louisiana, Mississippi and Alabama. They really love US over in Germany. Let something of this magnitude hit THEM, and see how fast they'll be calling on the United States to help -- and no doubt criticizing us for not helping faster.
Now the American left is getting excercised over how much "Chimpy McBushitler"'s War on Terror has caused us to: 1) have too few National Guard members available in Louisiana to help, 2) diverted funding from fortifying New Orleans' levees to Homeland Security, 3) prevented us from paying attention to immediate domestic needs, 4) was out of touch with victims' needs, and on and on.
Yet, not one of our so-called intellectual elites who so easily cast blame has offered one scintilla of a positive idea on how to make things better NOW and in the future for thethousands millions affected by Katrina. Much easier to point fingers than reach out a helping hand, I guess.
Now the American left is getting excercised over how much "Chimpy McBushitler"'s War on Terror has caused us to: 1) have too few National Guard members available in Louisiana to help, 2) diverted funding from fortifying New Orleans' levees to Homeland Security, 3) prevented us from paying attention to immediate domestic needs, 4) was out of touch with victims' needs, and on and on.
Yet, not one of our so-called intellectual elites who so easily cast blame has offered one scintilla of a positive idea on how to make things better NOW and in the future for the
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