Quote of the Day
One man practicing sportsmanship is far better than 50 preaching it.
Knute Rockne
Video: Keynes v Hayek, Round Two
Thanks to Carpe Diem for the tip. Finally, a rap song worth listening to. Will my faithful readers figure out whom I think is the clear winner? HINT: among the books in my bedroom are the volumes The Constitution of Liberty and The Road to Serfdom.
Readership Declines Again, But Stabilizing
April marked my sixth consecutive month in a pageview correction after last October's high point (almost triple the number of page views). My Danish readers regained the international pageview total lead, with Slovenia a distant second. I will continue to focus on what I regard is one the most distinctive commentary blogs on the web.
Eliminate Oil & Gas Subsidies/Tax Treatment?
Not on Obama's Terms...
I discussed the difference between cost and percentage depletion depreciation in my April 9 post (in theory accumulated percentage depletion can exceed the original development/acquisition costs; I personally oppose any such overage); in my view Obama is pushing to eliminating some $4B in related subsidies, which he purports to do to "reduce the deficit"--and he thinks he's being very clever, with a "divide-and-conquer" strategy among House Republicans, where Speaker Boehner is being manipulated into a unilateral concession to a persistent Democratic demand for years.
Let's be clear about a few points: first of all, President Obama has ZERO credibility when it comes to deficit or debt reduction; he can put lipstick all over that Democratic pig, but it's still a pig. Second, we want COMPREHENSIVE subsidy elimination, not just the oil and gas industry. Obama is back to his same old same old tricks of the government picking winners and losers in the subsidy game, which violates the constitutional principle of equal protection. If Obama REALLY wants to reduce the deficit, he needs to simultaneously end the far more significant alternative energy subsidies. Is Obama willing to cut that deal? Of course not. Is this yet another example of Obama's political opportunism, trying to redirect anger over higher gas prices against the oil companies themselves? Of course. Studies show that the US multinational oil and gas companies pay a higher effective tax rate. Shouldn't the end goal be broad-based reduction of ALL government subsidies and normalizing tax rates at a globally competitive rate?
Would I vote even for a piecemeal attempt to end unsustainable government subsidies in any shape or form? Of course. The President, of course, is playing politics: he wants to go to the people next year accusing the Republicans of being hypocritical on the subject of tax subsidies. This is from the leader of the party that for years argued that Republicans wanted to gut Medicare; yet last year the Democrats essentially double-counted unlikely savings in Medicare, not to shore up Medicare, but to help pay for a new health entitlement. The President is ONLY going to come to agreement with the Republicans when he's willing to make concessions to get to a deal. Trying to embarrass the GOP with a partisan measure, demanding capitulation, is not bipartisanship or leadership.
Wal-Mart CEO Says Its Customers Are Running Out of Money:
The High Cost of Personal Transportation
Given limited raises in a soft labor market, there's no doubt that $50 fill-ups are adversely affecting lower/middle-class shoppers faced with an already tight budget. This is going to affect spending and consumer confidence and possibly trigger a recession. A double-dip recession is written off by many, if not most economists, and "Helicopter Ben" Bernanke seems willing to continue to flood the economy with easy cash to avoid just such a possibility, but we are already seeing a softening of quarterly GDP growth and an uptick in unemployment claims. We are going to have to see sustained growth at the 3%-plus level to see any significant dent in unemployment statistics. High gas prices reflect decades of Democratic Party policies against expanding exploration and development of oil and gas sources. There is no meaningful step towards energy independence trying to pick and choose new exploration areas.
Fukushima Nuclear Incident Update
Atomic Power Review notes:
- Friday evening: Nitrogen injections (to control against hydrogen explosions) into primary containment of reactor 1 had stopped but recommenced. Reactor temperatures continue to decline, particularly in the reactor 1 pressurized vessel, but the interim higher injection inflow was reduced to assess conditions. Robot inspections of reactor 1 confirm that primary containment is not leaking. Large cranes continue to remove debris, with ongoing anti-scattering sprays to limit airborne radioactive particles.
Political Humor
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Photo Courtesy of George Pimentel, WireImage |
Prince William's 3-year-old goddaughter and bridesmaid Grace Van Cutsems thinks the second kiss of the prince and his bride Catherine is yucky.... Or 'This wasn't like any of the Disney movies I've seen.'...Or she just saw the bill for the event... Or she thinks it is her turn to wear the tiara.
A few originals:
- President Obama said at the press event on releasing his long form birth certificate, "We're not going to be able to solve our problems if we get distracted by sideshows and carnival barkers." Carnival professionals were deeply offended by being compared to Donald Trump and Celebrity Apprentice. And, for that matter, Uncle Sam's circus on Capitol Hill.
- Donald Trump is really proud of himself for getting President Obama to release the long form birth certificate. And once elected President, he'll deal even more vexing issues, like resolving once and for all: is Elvis Presley's death certificate a fake?
Musical Interlude: My Favorite Groups
ABBA, "The Day Before You Came"
