Free trade or bust

If Obama doesn’t back off the free trade infringements I’m gonna use my head to open beer bottles from now on. It will hurt less.

Look, I’m trying to work with the guy. I’m willing to be the team player, as the Governator suggests, but hopping on the isolationism wagon isn’t going to help anyone. Ever. Following the First World War, we learned that closed doors don’t prevent problems, they exacerbate them. We went the other way following WWII, and built two capitalist powerhouse allies from the Axis powers.

Now we’re talking about institutionalizing “buy American” clauses, which is one giant leap for setting up trade blocks. Thanks Mr. President. Could you please arrange for some resource wars while we’re at it? Subsidies and tariffs weren’t enough, now we’re eying the triple crown of bad economic plans.

Worse than the trillions at stake is the damage to the world in all the intangible ways. Free trade is the only force out there consistently working for world peace. Government giveaways fatten the pockets of whatever warlord gets there first. Peace marches change nothing other than to help those walking feel better about themselves. The United Nations alters lingo so it doesn’t have to get involved in genocides, contrary to the founding principal the organization was built upon, cowards hiding behind a legal definition.

Independent investment only goes where it can make a profit, thereby not being grabbed by the corrupt or wasted on unsustainable projects. It only goes where it has a chance to take root, grow, and blossom. You know, like subsidized sugar in Florida….

OPEC = Still weak

Another insane week in energy. OPEC trimmed another 2 million barrels per day, but did anyone care? Not so much. Frankly, this thrills me. I’m giddy over here. OPEC is angry about falling prices, OPEC cuts production, prices fall $3.50 yesterday and $4 today. I feel like Shaq on stage at a Miami nightclub. “Kobe, how’s my ass taste? OPEC how’s my ass taste?” I’m not even going to dignify their “news flashes” any more. From now on, they will be called supply ‘cutes’ as they are clearly not worthy of the name ‘cuts’. The 600 pound gorilla in the room remains demand, but it’s looking more and more like the rest of the room is empty: there’s just King Kong.

Speaking of King Kong, it is official that Brock Lesnar is the biggest star in the UFC. Though they were only his first three fights in the organization, he was the most purchased PPV name in the organization’s roster. Apparently the economy isn’t so bad for Zuffa, as Lesnar’s last fight, where he took the title from Randy Couture, was the 2nd biggest UFC event ever. Even more importantly, of the 10 most purchased PPV events of 2008, 7 of them will have been UFC events, assuming the card on the 27th qualifies, a lock given the talent on that card.

Speaking of that card, we’ll be watching it, most likely at the parents’ house. Possibly the first UFC card with a legitimate three main events, this is the second most talent to ever compete at one event on North American soil, only behind this year’s debut of Affliction. Forrest Griffin defends his Light Heavyweight title against Rashad Evans, Quinton Jackson faces the man who beat him twice, Wanderlei Silva, and is looking to earn a shot at getting his belt back, and Minotauro Nogueira defends his interim Heavyweight title against Frank Mir, with the winner meeting Man-Bear-Pig Lesnar in 09.

OPEC = weak

OPEC announces 1.5 million barrel per day cut, crude falls 3.50.

Let’s hear it for the artists formerly known as a cartel.

Economic Meltdown

Today as I drove through town, nearly half the stores were closed. The streets teemed with the unemployed; it was if 1/3 of the city was just walking around, 100,000 with nothing to do but loiter. Scarier still, people looked hungry. Like all they wanted was to work, and all they needed was a job, any job at all, so they could get food for their kids. Truth is, there was barely enough food on the store shelves, thanks to the drought in the Midwest, and people with jobs could barely afford it. I couldn't believe how bad the economy had gotten.

Of course, none of this happened. Well, not since the Great Depression was at its worst in the 1903’s. Since then, we haven’t had a really scary economic crisis. In lieu of actual suffering, now we make up our crises so we can over-react and buy the swill the media sells. We are a cowardly lot, and one that loves the drama.

The economy is in a recession. That’s a fact. A financial panic? Absolutely. An “economic meltdown?” No, not quite. Actually, not even close, though I ripped that tag directly from a headline. Unemployment is up to 7%, headed for 8. It will probably even hit 9. Of course, no one mentions that during the economic boom of the 90’s, most of Europe still had unemployment from 10-11%. That’s how bad unemployment is now, only 20% lower than Europe’s in the good times. So let it be written, American capitalism is a failure!

Actually it’s not. True, the stock market is down 40%. As Ronald Reagan said, "Never confuse the stock market with the economy." Though he and I have some different ideas about economic policies, he was right; they aren’t the same. The market moves in minutes and hours, and even in seconds. The economy moves in months and years, and even in decades. So with the huge drops in the market, you might expect some huge fundamental change in retails sales the month that preceded the crash. You’d be right, and today everyone “oohed” and “ahhed” at the 1.2% drop in September. That’s right, just over a 1% drop from the biggest consumer spending September in history and people think the end has arrived. For every 100 big screens that would have sold, one didn’t. For every 1,000 shirts that would have been sold, only 988 were bought. Oh, Lordy, kill me now.

We are not in the midst of a plunge either to mercantilism or to communism. We’re okay. Something around 90% of the country made the same amount of money this month that they did last month. Heavens to Betsy. Americans are still rich. Americans are still fat. Americans still run the world. Any one who says differently is selling something. More specifically, selling a newspaper.

European gas prices

I received this at work. It contains some recent figures on where gas prices are in a few European nations and compares them to what we are paying here in the States. $3.70 per gallon (where I live) is not a lot of fun, but this does help put it in perspective.


U.S. Department of Energy Retail Gas Prices by Country (Table)
2008-04-10 15:59 (New York)

By Terry Barrett
April 10 (Bloomberg) -- The following table provides changes in the retail price per gallon of premium gasoline by country, according to the U.S. Department of Energy.
The average price in the following six European countries is $8.37 per gallon, 135.9 percent more than the United States.
===============================================================
----------April 7 (Diff.)
----------2008 (from US)
===============================================================
Belgium $8.44 ($4.89)
France $8.15 ($4.60)
Germany $8.22 ($4.67)
Italy $8.11 ($4.56)
Netherlands $9.24 ($5.69)
U.K. $8.08 ($4.53)
U.S. $3.55 (n/a )
===============================================================
NOTE: Prices include taxes.

SOURCE: U.S. Department of Energy {DOE }