Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Technology

Chris Hughes – Just the Man to Resuscitate The New Republic

This article first appeared at The McAlvany Intelligence Advisor on Friday, December 12, 2014:

Chris Hughes at Hacking Education event

Chris Hughes

Chris Hughes is so smart that he once was caught reading the French author Honoré de Balzac, in the original French. He led a pampered life, first attending and graduating from Phillips Academy in Andover, Massachusetts and then moving on to get a BA degree at Harvard University.

His roommates at Harvard were Eduardo Saverin, Dustin Moskovitz, and Mark Zuckerberg. Zuckerberg was fooling around with a computer program that would link Harvard students together online when Hughes suggested that the program be extended to other schools.

When Facebook was officially launched, Hughes became Zuckerberg’s spokesman, making himself wealthy in the process. In 2008, he helped a virtually unknown senator from Illinois get elected president by running a social network website for him called

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The New Republic Magazine: New Format, Same Old Socialism

English: Chris Hughes Website

Chris Hughes, The New Republic’s new owner

This article first appeared online at TheNewAmerican.com on Tuesday, December 9, 2014: 

 

The announcement late last week by top staffers at The New Republic (TNR) magazine that they were resigning to protest its “new direction” was met with rejoicing on the Right and consternation and anger on the Left.

In his subscription newsletter, Gary North called it “great news,” noting that the magazine had “always been a mouthpiece of the American left.” Wrote North:

The disappearance of The New Republic is part of a trend. Part of the trend is the shift from printed to digital communications. The Left has not made the transition. The other part is the shift away from traditional American liberalism.

On the Left, establishment journalist Dana Milbank, a graduate of Yale University (where he was a member of Skull and Bones), and later the author of a polemic biography of Glenn Beck, took it personally. He attacked TNR’s new owner, Chris Hughes, calling him “a dilettante and a fraud.” He explained the reason for the mass exodus: 

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Gun Sales Triple on Black Friday

This article first appeared at TheNewAmerican.com on Sunday, November 30, 2104:

The national media were full of reports from retailers of Black Friday consumers driving sales to record levels, with some retailers estimating sales jumping 15 to almost 40 percent over last year. Consumers not only took advantage of specials being offered the day after Thanksgiving, but in many cases even shopped on Thanksgiving Day, perhaps foregoing a little turkey and football in the process.

It’s called Black Friday for a very good reason:

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George Mitchell: the one man most Likely Missing from Thanksgiving Day lists

This article first appeared at The McAlvany Intelligence Advisor on Friday, November 28, 2014:

English: "The First Thanksgiving at Plymo...

English: “The First Thanksgiving at Plymouth” (1914) By Jennie A. Brownscombe (Photo credit: Wikipedia)

It’s a safe bet that Americans, in compiling their list of blessings for which they were most thankful on Thanksgiving Day, didn’t put George Mitchell at the top. It’s even safer to bet that most Americans don’t even know who he was, or how his life has made life better for nearly every American today.

The Economist had it right: “Few businesspeople have done as much to change the world as George Mitchell.” The founder of Mitchell Energy & Development Company located in Galveston, Texas, Mitchell was responsible for drilling more than 10,000 natural gas wells and, in the process, resetting the world’s energy equation.

Although he passed away over a year ago at the age of 94, Mitchell’s advances in fracking technology are continuing to delight American drivers with

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Taxi Union Flexes Its Muscle, Shuts Down San Francisco International Airport

This article first appeared at TheNewAmerican.com on Thursday, November 20, 2014: 

International Terminal of San Francisco Intern...

International Terminal of San Francisco International Airport

Stung by increasing competition from ride-sharing services such as Uber and Lyft, independent taxi drivers in San Francisco — where Uber got its start in the summer of 2010 — decided to do something about it: They joined a union. And the first thing that union did was what unions always do: They conducted a “work stoppage” — right in front of San Francisco International Airport (SFO) — with more than 600 taxis blocking traffic, honking their horns and flashing their lights from 9 to 11 p.m. Monday night, while refusing to pick up passengers.

Most unions are wont to picket employers, hoping to blackmail them into

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Fracking Boom and the Development of America’s Energy Resources

This article will appear as the cover story in the next issue of The New American print magazine:

Travis Wright’s first impressions of Williston, North Dakota, in January 2012 remain vivid. It was bitter cold and the Walmart parking lot was filled to overflowing with campers and RVs whose owners were using them as de facto homes while working in the oil fields. Once inside Walmart, Travis discovered pallets of goods blocking the aisles as the understaffed nighttime crew of stockers simply couldn’t keep up with demand. He quickly learned to do his shopping in the middle of the night when the lines were only 30 minutes long. He learned later that this Walmart in Williston was the highest-grossing one in North America. The local economy was booming to such an extent that even paying $17 an hour for entry-level jobs, store officials couldn’t find enough employees to work for that amount.

Travis — at 6′6″ and 280 pounds, his friends called him Big ‘Un — was also astonished to learn

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The Inevitable Demise of the OPEC Cartel

This article first appeared at TheNewAmerican.com on Sunday, October 26, 2014: 

English: Flag of the Organization of Petroleum...

Flag of the Organization of Petroleum Exporting Countries

Following the death of Total SA’s CEO, Christophe de Margerie, on October 20, OPEC sent this letter to the board of the multinational oil and gas company expressing sorrow over the loss:

It is with the deepest regret that the Organization of the Petroleum Exporting Countries (OPEC) learned of the tragic death of Christophe de Margerie, Chairman and Chief Executive Office of French oil major, Total SA, who died when his corporate jet struck a snow plough on a runway at Moscow’s Ynukovo airport late on Monday 20 October.

Missing from the letter was any mention of the demise of OPEC, which has been slowly imploding for years. Recent events have significantly speeded up the process, which

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Robots Everywhere

This article first appeared at The McAlvany Intelligence Advisor on Friday, October 10, 2014:

First generation Roomba (Roomba is a trademark...

First generation Roomba (Roomba is a trademark of iRobot). (Photo credit: Wikipedia)

The next wave of technological robots is here. When the Roomba iRobot made its grand entrance a few years ago, it was considered clever but expensive. Now, however, it is taking a big bite out of the $12 billion annual vacuum cleaner business as its technology continues to improve and its prices come down. According to Roomba, there is

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Robotic Pizza Delivery, Banking, and Now Over-the-road Trucking

This article first appeared at TheNewAmerican.com on Thursday, October 9, 2014:

Mercedes-Benz HighPerformanceEngines

Last month, Mercedes-Benz unveiled its “Future Truck 2025,” an essentially driverless over-the-road tractor-trailer rig that the company expects will revolutionize the trucking industry within the next 10 years, if not sooner. While only a prototype, the company is investing millions in the concept expecting that inside the next decade driverless rigs will be commonplace not only in the United States but across the world.

The advantages are obvious:

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Saudi Arabia Capitulates, Cuts Oil Prices

This article first appeared at The McAlvany Intelligence Advisor on Monday, October 65, 2014:

Saudi Arabia’s announcement last week that it was cutting prices to its Asian, European, and US customers by between $.40 and $1.00 a barrel represents a major capitulation and recognition of reality. It also represents a major departure in its role as the leading member of the OPEC cartel, proving once again that every cartel eventually blows up as its members seek their own interests over those of the cartel.

For decades, the role of the OPEC cartel has been to protect the cash flow of its members by manipulating oil prices through changes in production levels. If prices got too high and demand started falling as a result, the cartel would increase the supply of crude to the world markets. If prices got too low, on the other hand, it would gladly restrict those supplies to bring prices back up to a level acceptable to the cartel.

Those days now appear to be over.

By bringing its prices down below prices charged by OPEC member Qatar and non-OPEC member Oman, Saudi Arabia is setting the stage for an international oil price war. Futures traders, who have gotten hammered as crude oil prices have dropped almost 20% since June, are holding their collective breath to see if Qatar and Oman jump ship and reduce their prices as well. Energy analysts like John Kilduff with Again Capital are estimating that crude oil prices will consequently drop to the low $80s, while Fadal Gheit at Oppenheimer is predicting prices dropping into the low $70s. Gheit explained:

It’s both supply and demand. It’s basically the perfect storm that brought all these prices down. You have plenty of supply, which you never thought possible, and all of a sudden demand is shrinking: China is slowing down [and] Europe never recovered.

Gheit is a realist. He stated what every observer already knows: the OPEC cartel “is held together by scotch tape. They hate each other.” Now that the leader of the pack has decided to leave the pack, it’s going to be much easier for other OPEC members to join the fray and drive prices down even further.

Part of that perfect storm is the shale oil fracking revolution that has driven crude oil production in the United States to levels not seen in 50 years. Part of it is Russia’s increase in crude oil production to nearly post-Soviet era records as well. In addition, production from Kurdistan over the next 15 months is expected to more than provide China’s increased demands for energy, thus assuring that world supply will continue, in the short run at least, to outpace world demand.

Saudi Arabia’s admission of reality is already having welcome impacts. Gas prices in the United States have fallen to $3.32 a gallon on average, with more than half the states having at least one gas station selling gas for less than $3 a gallon. It’s also pulling the legs out from under the foreign policy justification of adventurism abroad in order to protect the supply of energy which America is now almost capable of providing all by herself.

As prices decline, consumers are able to redirect spending into other areas, helping along the modest economic recovery from the Great Recession. It may also prove to skeptics that, once again, Warren Buffett is right. His much ballyhooed announcement of his purchase of Van Tuyl Group, the nation’s largest US auto dealership chain, should help his company, Berkshire Hathaway, ride the wave of cheaper gas and the consequent willingness of customers to replace their aging fleet of vehicles with new ones.

It is possible, however, that prices may drop too far, causing capital that is currently flooding into the energy exploration business to go elsewhere where it will be treated better in the years to come. As Stephen Leeb, a writer at Forbes, put it: “It takes energy to get energy.” In the early 1950s, it took the energy from one barrel of oil to harvest five barrels. Today, because of improvements in technology, it takes about one barrel to produce nine in conventional fields.

But in unconventional fields – i.e., shale oil fracking – it takes the energy of one barrel of oil to discover, develop, and lift just four barrels, which, according to State University of New York Professor Charles Hall, isn’t enough to keep America’s modern industrial society operating at peak efficiency. The proper ratio, according to Hall, is that one barrel of energy must generate at least five barrels of new production, preferably more.

If the Old Farmers Almanac’s prognostications are correct, the US should enjoy another relatively mild winter, reducing chances of a spike in demand that would drive crude oil prices higher. For the time being then, Saudi Arabia’s capitulation and potential blowing up of OPEC will be enjoyed by American drivers and consumers. In the longer run, however, capital may be redirected away from the oil patch to more profitable areas if the price of crude stays too low, too long. In the meantime, America will once again enjoy the view from the catbird seat.

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Sources:

Commerzbank: ‘OPEC Appears to Be Gearing Up for Price War’

CNBC: Saudi signals price skirmish as oil heads to bear market

Bloomberg: Brent Oil Falls to Lowest Since June 2012 on Ample Supply

The Old Farmers Almanac: 2014–2015 Winter Weather Forecast Map (U.S.)

Forbes: Dangerous Times As Energy Sources Get Costlier To Extract

Auto Blog: Warren Buffet buys largest private US car dealership chain

Fracking Revolution: U.S. Replaces OPEC as World’s “Swing Producer”

This article first appeared at TheNewAmerican.com on Wednesday, October 1, 2014: 

 

After reviewing the numbers from America’s oil and gas patches, Per Magnus Nysveen of Rystad, an international oil consultancy in Norway, declared that the United States is now taking on the role of “swing producer” that used to be played by Saudi Arabia and other members of OPEC, the oil producers’ cartel.

Those numbers are impressive. Fracking technology has led to a 65-percent increase in U.S. crude oil output in just the last six years and, according to Wood Mackenzie,

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The Privacy Pendulum is Swinging back Towards Freedom

With Apple’s announcement of its new iPhone 6 10 days ago also came the announcement of an upgrade of its operating software – the iOS 8 – that now makes it impossible for law enforcement to break the code and retrieve the phone’s private information, even if it has a search warrant. On its website, Apple said:

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Luddites Foiled Again: low-cost Robots Making Workers more Efficient

This article was first published at the McAlvany Intelligence Advisor on Friday, September 19, 2014:

Rage Against the Machine

Rage Against the Machine (Photo credit: Wikipedia)

Jesus Fernandez got nervous when his company installed 21 new Universal Robots that were supposed to make his life easier and safer by helping him move parts in and out of its metal-cutting machines. At $20,000 apiece, the robots threatened to replace him altogether, or so he thought: “At first, I had doubts the robots could do what I did, moving the parts around, handling the parts.” But he timed himself against one of them and concluded: “I’m fast, but the robots are faster.” Fernandez accepted the new technology and now operates three of the so-called collaborative machines, reducing labor costs for his company while simultaneously increasing his take-home pay.

Fernandez’s boss, Gregg Panek, president of Panek Precision, Inc., a machine shop in Northbrook, Illinois, said one of the reasons for the improved efficiency is “because

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Fracking Boom Continues to Set Records

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, September 17, 2014:

Logo of International Energy Agency

Logo of International Energy Agency (Photo credit: Wikipedia)

The explosion in production in the oil patch makes it nearly impossible to keep up. Economist Mark Perry is trying. On September 2, he reported that Texas crude oil production in June topped three million barrels per day, noting that, as a separate nation, Texas would be the world’s eighth largest oil producer. The very next day Perry reported that natural gas production from the Utica Shale formation has increased by a factor of seven in just two years, and it’s just getting started.

Less than two weeks later, Perry reported that

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More Good News From the Oil Patch: Less Drilling, More Production

This article first appeared at TheNewAmerican.com on Tuesday, September 16, 2014:

A petroleum drilling rig capable of drilling t...

A petroleum drilling rig capable of drilling thousands of feet (Photo credit: Wikipedia)

It didn’t take long for naysayers at Newsweek magazine to declare that the fracking boom is at high risk of going bust. This followed an announcement from the Bank of America in July that the United States is now the world’s leading oil producer, ahead of both Saudi Arabia and Russia. In just the last five years, U.S. oil production has exploded from five million barrels a day to 11 million and, according to the International Energy Agency (IEA), that number will continue to climb for at least the next five years.

But what then? Newsweek posited: 

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Proof That $15 Minimum Wage Hurts Those It’s Claimed to Help

This article first appeared at TheNewAmerican.com on Monday, September 8, 2014:

 

Obverse of United States one dollar bill, seri...

The city of SeaTac, which holds the Seattle-Tacoma International Airport, raised the minimum wage to $15 an hour starting January 1 for some businesses. Within weeks of the beginning of the SeaTac “experiment,” the impact of the passage of Proposition One had become evident. Despite the fact that the new law impacts only about 1,600 employees in this town of 27,000, major changes and shifts were already taking place in reaction to it.

For example, a customer using the Master Park Airport valet parking service at SeaTac will note an extra line on his bill for $.50 entitled

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Why Aren’t Gas Prices Lower?

This article first appeared at TheNewAmerican.com on Friday, August 29, 2014:

 

English: Took image myself as an example of th...

With gasoline prices averaging, according to the AAA Motor Club, just $3.43 a gallon as of August 28, Clifford Krauss celebrated the “new American oil bonanza” in an article for the New York Times. Unfortunately, Krause is behind the times and only half right. The “new” American oil bonanza is not new, nor is it confined to oil. The first economical natural gas shale fracture was completed in 1998 by George Mitchell’s company, Mitchell Energy, using slick water fracturing. Since then, natural gas from shale has been the fastest growing contributor to total primary energy in the United States, with crude oil extraction from shale right behind.

Happily, Krause got the rest of it right when he noted that

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Leahy Offers Weak Bill to Curb NSA Eavesdropping on Americans

This article first appeared at TheNewAmerican.com on Wednesday, July 30, 2014:

English: Official photo of Senator Patrick Lea...

Senator Patrick Leahy (D-VT)

On Tuesday, Senator Patrick Leahy (shown, D-Vt.), Chairman of the Senate Judiciary Committee, introduced his version of the USA Freedom Act intended to strengthen a similar bill passed by the House last May. It’s scarcely an improvement and likely won’t be taken up before November, if at all in this congress.

But Leahy was optimistic nonetheless, saying that his bill, if enacted, “would represent the most significant reform of government surveillance authorities since … the USA Patriot Act 13 years ago.” That was easy for this hard-left Democrat to say, as there has been no reform of the unconstitutional Patriot Act since it was passed. In fact, without revelations provided by whistleblower Edward Snowden, even these modest “reforms” would never have been presented. Without Snowden, the NSA would have continued collecting every last piece of communications data it could and storing it for future reference at one or more of its vast collection facilities around the country. Since the bill was presented so late in this Congress, it is virtually certain no action will be taken on it.

The House bill that was passed back in May was so full of loopholes and modifications by last minute amendments as to make the effort essentially ludicrous. Although offered jointly in October 2013 by Leahy and his House counterpart, Jim Sensenbrenner of Wisconsin (the author of the Patriot Act), only the House bill ever saw the light of day. At the time, Sensenbrenner expressed great hopes for his bill:

Following 9/11, the USA Patriot Act … has helped keep Americans safe by ensuring information is shared among those responsible for defending our country and by enhancing the tools the intelligence community needs to identify and track terrorists.

But somewhere along the way, the balance between security and privacy was lost…. Washington must regain Americans’ trust in their government. The USA Freedom Act [I am offering] is an essential first step.

That first step was more like a stumble. Under the bill, according to The Guardian, “the government will still be able to collect phone data on Americans, pending a judge’s individualized order based on ‘reasonable articulable suspicion’ — the standard preferred by the NSA (National Security Agency) — of wrongdoing.” This is a far cry from the “probable cause” requirement demanded in the Fourth Amendment, but that’s only the beginning.

The bill purports to modify Section 715 of the Patriot Act while saying nothing about Section 702, which allows worldwide surveillance by the NSA. The bill allows for the continuous collection of Americans’ telephone records, according to the Open Technology Institute. Most grievously, the bill extended the Patriot Act until December of 2017.

Once the House passed its USA Freedom Act, 303 to 121, those opposed, including Republicans Darrell Issa, Ted Poe, and Raul Labrador and Democrat Zoe Lofgren expressed their disappointment with it. Said Lofgren, “[This] bill will actually not end bulk collection, regrettably.” It shifts collection responsibilities from the NSA to the telephone companies to which the NSA has virtually unlimited access, so it’s a cosmetic change only. The bill requires the NSA to get permission from the FISA Court, but FISA is not known for having a high regard for the freedoms protected by the Bill of Rights.

When Senator Ron Wyden (D-Ore.) saw what the House had wrought, he said he was “gravely concerned that the changes that have been made to the House version of this bill have watered it down so far that it fails to protect Americans from suspicionless mass surveillance.”

Not surprisingly, the White House endorsed the watered-down version of the bill:

The Administration strongly supports … the USA Freedom Act…. The Administration applauds and appreciates the strong bipartisan effort that led to the formulation of this bill, which heeds the President’s call on this important issue.

The bill ensures our intelligence and law enforcement professionals have the authorities they need to protect the Nation, while further ensuring that individuals’ privacy is appropriately protected.

Especially grievous is the power that continues to be granted to the so-called FISA “court.” This is the secret court that first came to light when Edward Snowden in 2013 leaked a top-secret order issued by the court requiring a subsidiary of Verizon to provide a daily, on-going feed of all call detail records — including those for domestic calls — to the NSA. As Jennifer Granick, director of civil liberties at Stanford Law School, explained,

The Administration and the intelligence community believe they can do whatever they want, regardless of the laws Congress passes, so long as they can convince one of the judges appointed to the secretive Foreign Intelligence Surveillance Court (FISC) to agree. This isn’t the rule of law. This is a coup d’etat.

Leahy’s bill allegedly will tighten up the House bill somewhat, creating a “special advocate” for liberty at the FISA courts, and limiting the NSA from vacuuming up data from an entire zip code or all the records from a communications service provider. It also declassifies some of those FISA court orders which have remained sealed and protected from public view. In its tentative support for Leahy’s new offering, Nadia Kayyall of the Electronic Frontier Foundation (EFF), said,

The legislation may not completely end suspicionless surveillance … it allows the NSA to get a second set of records (a second “hop”) with an undefined “direct connection” to the first specific selection term.

Because the “direct connection” standard is vague, the government may seek to construe that phrase to mean less than reasonable suspicion.

Translation: The NSA, under Leahy’s new stronger, tighter, more restrictive language, may continue to do whatever it pleases in collecting and storing for later use all private communications from Americans.

Leahy’s bill will probably never see the light of day in this congress and will have to be reintroduced in the next session if anything is to be done to rein in the NSA’s collection of data. In the meantime, the NSA’s vacuuming of innocent Americans’ private communication continues unabated.

 

 

Gas Prices Ease as U.S. Oil Production Soars

This article was first published by TheNewAmerican.com on Monday, July 7, 2014: 

English: $4.06 Gas Prices, Lewiston, Maine, Cu...

Despite predictions to the contrary, the price of gas over the July 4 weekend dropped by two cents per gallon, confounding seers who were looking at gas approaching $4 a gallon. Those prognosticators were guilty of “straight-line thinking in a curvilinear world” — meaning that since gas this year was 20 cents a gallon more than a year ago, they believed it would continue to go up steadily for the foreseeable future.

With political disruptions in Iraq and Syria seriously reducing their contributions to the world’s oil supplies, one would think that prices would have to go straight up.

One would be wrong.

On July 4, Bank of America reported that U.S. production of crude oil (along with the liquids separated from natural gas) “surpassed all other countries this year with daily output exceeding 11 million barrels [per day] in the first quarter.” Francisco Blanch, BofA’s head of commodities research, told Bloomberg,

The U.S. increase in supply is a very meaningful chunk of oil. The shale boom is playing a key role in the U.S. recovery [from the Great Recession].

If the U.S. didn’t have this energy supply, prices at the pump would be completely unaffordable.

The nearly exponential growth in oil production, thanks to the free market’s invention and development of fracking technology, has put the United States firmly on the path of energy independence. As we become energy independent, disruptions in the supply chain from the Middle East will matter less and less.

Texas and North Dakota — which Professor Mark Perry calls “Saudi Texas” and “Saudi Dakota” respectively — are now producing almost half of all U.S. oil, and would rank as the fifth largest oil producing country as a separate nation. The growth in production is astonishing, according to Perry:

A decade ago the combined conventional crude oil production in the states of Texas and North Dakota … represented less than 21% of total U.S. crude oil output.

By 2008, the combined crude oil output in the two states … were producing one-third of all U.S. crude oil.

In eight out of the last nine months, their combined share exceeded 47% of all U.S. oil.

Perry predicts that it will exceed 50 percent sometime before the end of the year. And that prediction could come back to embarrass him, if the International Energy Agency (IEA) is correct. The IEA is estimating that total U.S. crude oil production (currently at 8.4 million bpd) will continue to soar, exceeding 13 million barrels per day in less than five years. That 50-percent increase in oil production would mean that the United States could be producing nearly 80 percent of its domestic needs for energy, closing in on energy independence.

In the very short run, gas prices will remain higher than they should be, thanks to the disruptions of supply in the Middle East, but with the continuing success of fracking making shale oil deposits now available with current technology, prices may reasonably be expected to decline further over time. Blanch admitted as much to Bloomberg:

The shale production story [in the United States] is bigger than Iraqi production, but it hasn’t made the impact on prices you would expect.

Typically such a large energy [production] growth should bring prices lower but in fact we’re not seeing that because the whole geopolitical situation outside the U.S. is dreadful.

Those involved in capitalizing on the fracking revolution, however, are taking a much longer view. The annual investment in oil and gas development and production hit a record $200 billion this year, one-fifth “of the country’s total private fixed-structure spending for the first time,” said Blanch.

The explosion in the oil patch is doing much to offset the otherwise nearly stagnant economy. In the last 10 years, direct jobs in the patch have almost doubled, while “indirect” jobs that support the industry have almost tripled in that same time period. As Professor Perry noted: “No other sector … has added as many jobs for American workers or made as much of an overall economic contribution to the US economy as the oil and gas sector.”

Citizens often don’t know how well they have it here. At present the average cost of gasoline is $3.69 a gallon for regular. In Norway it’s an astounding $9.79 a gallon, while in Germany it’s $8.50, and in England a gallon of petrol is $8.25.

The only thing that will keep the price of gas from continuing its two-year decline is government, either through restrictions on energy development or through increased taxation. At present about $2.37 of that $3.69 represents the cost of crude oil. Refining costs are about $.45 a gallon, while distribution, marketing costs, and profits (estimated to be between eight and 15 cents per gallon) cost another $.33 a gallon. Taxes (federal and state) take up the balance: $.42 a gallon. Federal excise taxes are $.184 cents a gallon, while state taxes average about $.24 cents a gallon. If gas continues to drop in response to the natural laws of supply and demand (greater supply means greater demand thanks to the lower price), the temptation to raise state and federal excise taxes will become overwhelming.

In Germany, for instance, half the cost of a gallon of gas is due to taxes. In Great Britain the tax take on a gallon of gas is more than 60 percent. In Sweden it’s even higher.

At present, however, the laws of supply and demand are providing an enormous advantage to American drivers compared to their counterparts abroad. And they continue to confound the experts predicting ever higher prices at the pump as well.

A graduate of Cornell University and a former investment advisor, Bob is a regular contributor to The New American magazine and blogs frequently at www.LightFromTheRight.com, primarily on economics and politics. He can be reached at badelmann@thenewamerican.com This email address is being protected from spambots. You need JavaScript enabled to view it. .

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Don’t Worry, Ms. Lerner: Your Emails Are Out There and Mr. Issa Will Find Them for You

 

Seal of the United States Internal Revenue Ser...

This article first appeared at The McAlvany Intelligence Advisor on Friday, June 20, 2014:

In early August 2011, when Lois Lerner, then the Director of the Exempt Organizations Unit for the IRS, discovered that her computer had crashed, she asked the internal IT people to help her out and restore her files. By Friday, August 5, she hadn’t heard back from them so she called Lillie Willburn, the IRS Field Director involved. Late Saturday evening she received this from Lillie:

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.