It’s my habit to listen to one of my local radio stations in the morning. One segment today had a local financial adviser, a PhD, as a guest and the subject was the price of gas. After the unemployment numbers were announced today, the futures price of light crude dropped $2 in a few minutes. Light crude is the source for gasoline.
People think that lowering gas prices (locally now at $3.169/gallon) is good…and it is for many. But it is important to understand the cause.
The price drop yesterday was triggered by the expectation of continued decreases in crude oil consumption. When the job numbers are bad, as they are, there is less demand by business and, by extension, by individual consumers. People and businesses will retrench, hoard assets, minimize expenses, and will reduce the cost of doing business until the economy recovers.
That last sentence is the key. The economy isn’t recovering despite the announcements coming out of the White House and their lib sycophants. As my Dad would say, “People are hunkering down to survive the times.”
Enjoy the low gas prices and remember they are low not due to more production but to less demand.
Ray Lahood, is a Obama lib from Illinois who unintentionally spoke the truth. They envy the Chinese because it only take 3 people to make a decision instead of 3,000 or 3,000,000.
“The Chinese are more successful [in building infrastructure] because in their country, only three people make the decision. In our country, 3,000 people do, 3 million,” LaHood said in a short interview with The Cable on the sidelines of the 2012 Aspen Ideas Festival on June 30. “In a country where only three people make the decision, they can decide where to put their rail line, get the money, and do it. We don’t do it that way in America.” — Foreign Policy Magazine.
Yep, these wannabe dictators reveal themselves in so many ways. It behooves us to be aware and forewarned.
The employment announcement today added to an ongoing situation — 41 continuous months with unemployment above 8%.
“When we get an increase in general uncertainty, employers tend to postpone investment and hiring decisions,” Michael Gapen, senior U.S. economist with Barclays, told CNNMoney.
Finally, this piece — the UN “Gun Ban” treaty. Ordinarily, I’d not give this much thought for a number of reasons. First, just signing a treaty doesn’t put in into force. Look at Wilson’s League of Nations for example. Woodrow Wilson devised the concept in his 14 Points at the end of WW1.
The League was created but the US didn’t participate. Even though Wilson originated the idea and fought heavily for its creation, the US Senate did not ratify the treaty. A decade later, the League quietly folded its tent and disbanded. It proved, like the UN, to be ineffective in blocking acts of aggression, it’s primary purpose.
This time, however, the passage of the treaty may be different. We still have a democrat controlled Senate. No treaty can usurp the constitution. A treaty could not, for example, repeal the 2nd Amendment. The Constitution trumps treaties.
That was before Chief Justice Roberts turned his coat.
If the treaty is passed and Obama uses it to attempt more gun control using the Treaty as authorization, people will resist. I don’t know what will happen if Obama uses force to enforce the treaty. No good will come from it.
When we no longer have confidence in the Courts to uphold the Constitution, our alternatives to resist tyranny become limited.
As I said, ratification of this treaty will bring no good to the nation.