Shocking News Of The Day
Once again, we are reminded that decreasing demand lowers the price of a commodity:The drop in oil prices has come as gasoline demand in the United States fell sharply in recent months, thanks to Americans cutting back on their driving. Gasoline consumption fell 3.6 percent in the week ending July 18, compared with the year-earlier period, according to the Energy Department. Americans drove 9.6 billion | Read More »
The Protectionists Smell Blood
This is a disaster:The Doha round of global trade talks, now in its seventh year, broke up without agreement yesterday after nine days of tense negotiations.Divisions between the US, India and China about access to the agricultural markets of the developing world could not be overcome and the talks ground to a halt, scuppering efforts by Pascal Lamy, director-general of the World Trade Organisation, to | Read More »
Too Much Money, Not Enough Economy
We spend a lot of time worrying about the economy in the United States, especially as it relates to politics and policy. We’re facing very slow growth, well below the long-term trend, and certainly below what we’re capable of. At the same time, inflation is running well above normal (we reached a 5% annual rate in June).Europe faces similar problems, although their policy response has | Read More »
In the current round of Doha trade negotiations, the United States has made a positive gesture concerning agricultural subsidies:The US on Tuesday made the first significant move in this week’s politically fraught meeting of trade ministers in Geneva, cutting its proposed ceiling for farm subsidies to $15bn a year.The move would reduce US farm subsidies deemed to distort international trade by about $2bn (€1.3bn, £1bn) | Read More »
James Pethokoukis Offers Us Reasonable Causes For Cheer
Let us count the ways:He reminds us that the conventional wisdom to the contrary notwithstanding, the world really isn’t going to Hell in a handbasket for Americans. A nice reminder in the midst of an election year when candidates appear to be falling all over themselves to claim otherwise. Relatedly, be sure once again to see this, which serves as a nice palate cleanser after | Read More »
Sanity Returns To The Senate
And not a moment too soon:Legislation to rein in excessive energy speculation failed a key procedural vote on Friday to move forward in the Senate, and now lawmakers will set aside the bill to consider other legislation.The House of Representatives may take up its own anti-speculation bill next week, and then lawmakers will get ready to leave for their month-long recess in August.Sixty “yes” votes | Read More »
Quotes That Catch My Fancy
. . . economic downturns do offer the motivated reporter an opportunity to speculate on the possible political consequences of unflagging public and media ignorance. The causes for our current economic troubles are evidently too complex to fathom, so instead of writing intelligibly about what is actually happening and why, we are asked to wonder (hope? fear?) whether voters can be made to demand a | Read More »
Obama’s CHANGE for the Better
The political password of Obama is the need for “change, America is heading in the wrong direction”, the question is, which direction should America take to solve its economic and military problems?
Barack Obama’s Tax Plan
Explained by Dan Mitchell and well worth watching:
Your Good News/Bad News Post Of The Day
Free trade is flourishing in the East, which is wonderful news.With the West . . . well, it’s a different and significantly less-wonderful story.
My Position On Government Spending
I am an ante post-Reagan standard kind of guy myself.
Not Livin’ Large in Ohio, Folks Can’t Even Afford Meat?
That’s it. NPR has declared Ohio a disaster area. Things are so bad. NPR gravely warns, that folks in the Buckeye state can’t even afford to buy meat for their dinner tables anymore. It’s the end of civilization as we know it. Doom and gloom. Oh the humanity. It’s the end of the world as we know it… at least for one Ohio family that | Read More »
Gas Prices Cause Louisiana Women to Resort to ‘Pole Dancing’?
WAFB TV Channel 9, in Baton Rouge, Louisiana pulled out all the stops for this ridiculous report claiming that “some women” in the Pelican State are resorting to working in strip clubs because gasoline is so expensive. To prove it, WAFB found one woman that said so. I’d say that clinches this as “fact,” then, wouldn’t you?In typical sensationalistic news fashion, WAFB TV assumes that | Read More »
School’s In Session
Daniel Mitchell is teaching. But is our Carl Levin learning?
Oil drops for third day because of economics 101.
As much as we all have wanted to string speculators up by their thumbs (and they do have it coming), the drop in oil over the past three days has been because of downward pressure being placed on the market by fundamentals.