The impact of bio-fuels on the price of food has been debated almost from the initiation of the U.S. Renewable Fuels Standards (RFS). Most U.S. studies place the impact at 25% or below. A recent EU study places it at 75%. I have seen figures that indicate the impact to be around 150% in Africa. In spite of the apparent inconsistency of these numbers, they reflect the reality of food in each of the areas mentioned.
In the U.S., the majority of food consumed is highly processed. It comes frequently in ready-to-eat packaging, or in heat-and-serve form. In that case, the raw food product makes up only a small percentage of the overall cost of the finished product. A significant increase in the raw commodity price has only minimal effect on the cost of the consumer-ready item.
In Europe, food preferences favor less processing. The items are impacted more by increases in the basic commodity price. In Africa, food items are frequently the raw commodity and all preparation occurs after purchase. In that case, the raw commodity price makes up an extremely high percentage of the cost of the item with the remainder going to transportation costs and profits through the production-to-retailer chain.
The bottom line is that bio-fuels do have a significant impact on worldwide food prices. The severity of that impact depends on the affluence of the society that we are examining. Those least able to afford the impact are the ones most greatly affected.
Monday, July 28, 2008
Saturday, July 26, 2008
Energy Fuels Political Games
While Washington plays politics with our energy future, the U.S. consumers continue to pick up the check. The bill to curb energy speculation appears to be merely a political move designed to fool the electorate into believing that Democrats really care about our cost of fuel. It is really an attack on free enterprise which fails to address the true issue -- supply and demand. The price of fuel is set where the quantity supplied equals the quantity demanded. We either need a greater supply or a lower demand. The economic growth of China and India make it difficult to lower demand even though we are burning less fuel in the U.S. Therefore, we must work on the supply side of the equation. We must produce more oil.
From all appearances, Harry Reid and Nancy Pelosi do not care about the American people. They only care about their power and the narrow interest groups that keep them there. Until Republicans control both the Senate and the House, there is little chance of meaningful energy legislation. That control means more than a simple majority of seats. It must be at least 60% to be truly effective.
From all appearances, Harry Reid and Nancy Pelosi do not care about the American people. They only care about their power and the narrow interest groups that keep them there. Until Republicans control both the Senate and the House, there is little chance of meaningful energy legislation. That control means more than a simple majority of seats. It must be at least 60% to be truly effective.
Friday, July 25, 2008
Senator Cornyn: Fighting the Energy Fight
Senator Cornyn is continuing to fight for the American people on the subject of energy and high fuel prices. He pulls very few punches in his condemnation of Senator Reid and Speaker Pelosi as well as other prominent Democrats over their political stonewalling on this critical issue. I applaud his continued efforts. Read what he is doing here and here.
We Can Do Better
We frequently see the debate between “environmentalists” and the rest of us as framed in an “us” vs. “them” manner. Business people feel that the environmental movement is nothing but a roadblock to progress. People in developing countries see environmental groups preventing them from experiencing the luxuries of the west because they hinder the utilization of the natural resources at hand.
Environmental groups often carry names like “Friends of the Earth” or “Save the Wildlife.” Those types of names carry with them a stigma that immediately sets on edge the typical businessman.
What if the debate became a completely economic one?
There is within the economic community the idea that when external costs are internalized into the price of a good or service, the decision to allocate resources to that good or service often changes. An example of internalizing these externalities would be the impact of a uranium mine on the Navajo Reservation. In order to avoid the potential complexities of the decision, let’s limit it to one possible issue – or, external cost -- the impact of the mining activity on the water supply of a community.
Suppose that the mine is located within the watershed of a Navajo community. To fully understand the cost to develop the mine, the potential pollution of the community’s water supply must be examined. Such examination would need to include preventative measures and possible remediation in the event of contamination. It also would need to look at long-term effects to wildlife residing in the watershed. Wildlife might provide hunting lease income to the reservation. It might also be of significant cultural value that would be difficult to price. It might affect tourist income from photography or viewing. It might impact local artisans who utilize specific clays located within the watershed.
With the exception of preventing and remediating potential contamination, none of the impacts mentioned are direct costs to the mine owner/operator. They are however, external costs to the community of locating the mine in their watershed.
How does one determine the value of natural resources? We can estimate the value of mineral deposits. We can value land based on the transactional market for similar properties. But, how do we value the less obvious things such as: filtering the water supply, tourism, hunting and fishing, recreation, moderating effects on climate, flood protection, erosion control and other items about which we don’t currently understand?
Hopefully in the near future, we will see attention paid to such values. Such things must be part of an overall land use plan before disruptive activities are begun. We need oil, natural gas, wind energy, solar energy, coal and we need minerals that can only be obtained through extractive activities. Surely we have learned enough of the complex interactions of the environment to begin to make sound evaluations of our activities in a broader sense. We must learn to utilize our resources without destroying our surroundings. Let’s drill – but let’s do so in an environmentally informed manner. Let’s build windmills for electrical generation – but let’s situate them in a manner that retains the benefits of our wild lands. Let’s learn from the unintended consequences of our past mistakes – such as ruined lakes and streams from coal mining or oil and gas extraction. We can do better.
Environmental groups often carry names like “Friends of the Earth” or “Save the Wildlife.” Those types of names carry with them a stigma that immediately sets on edge the typical businessman.
What if the debate became a completely economic one?
There is within the economic community the idea that when external costs are internalized into the price of a good or service, the decision to allocate resources to that good or service often changes. An example of internalizing these externalities would be the impact of a uranium mine on the Navajo Reservation. In order to avoid the potential complexities of the decision, let’s limit it to one possible issue – or, external cost -- the impact of the mining activity on the water supply of a community.
Suppose that the mine is located within the watershed of a Navajo community. To fully understand the cost to develop the mine, the potential pollution of the community’s water supply must be examined. Such examination would need to include preventative measures and possible remediation in the event of contamination. It also would need to look at long-term effects to wildlife residing in the watershed. Wildlife might provide hunting lease income to the reservation. It might also be of significant cultural value that would be difficult to price. It might affect tourist income from photography or viewing. It might impact local artisans who utilize specific clays located within the watershed.
With the exception of preventing and remediating potential contamination, none of the impacts mentioned are direct costs to the mine owner/operator. They are however, external costs to the community of locating the mine in their watershed.
How does one determine the value of natural resources? We can estimate the value of mineral deposits. We can value land based on the transactional market for similar properties. But, how do we value the less obvious things such as: filtering the water supply, tourism, hunting and fishing, recreation, moderating effects on climate, flood protection, erosion control and other items about which we don’t currently understand?
Hopefully in the near future, we will see attention paid to such values. Such things must be part of an overall land use plan before disruptive activities are begun. We need oil, natural gas, wind energy, solar energy, coal and we need minerals that can only be obtained through extractive activities. Surely we have learned enough of the complex interactions of the environment to begin to make sound evaluations of our activities in a broader sense. We must learn to utilize our resources without destroying our surroundings. Let’s drill – but let’s do so in an environmentally informed manner. Let’s build windmills for electrical generation – but let’s situate them in a manner that retains the benefits of our wild lands. Let’s learn from the unintended consequences of our past mistakes – such as ruined lakes and streams from coal mining or oil and gas extraction. We can do better.
Wednesday, July 23, 2008
Energy: All of the Above
Senator Cornyn once again weighs in on the issue of Energy. The present gains on energy legislation are a result of the Democrats caving slowly to the building pressure from the electorate. Watch out though, come this fall if they retain their control of the House and Senate and possibly add the Presidency, the consumers in this country don't stand a chance. Energy prices will go through the roof. Why? Because they (the Democrats, er, Socialist Elite) don't want us using it! They want to be the elite (as in the Politburo) controlling the masses -- subjugating us to be their servants. It is eliteism at its worst. It is reminiscent of the rebellion of the working classes that resulted in the Communist Dictatorships of Stalin and Lenin. Sigh. Why are people so blind?
Cornyn Comments on Supreme Court Nominees
History tells us that the next President will likely have the opportunity to make at least one and possibly two appointments to the Supreme Court. Senator John Cornyn has posted some very insightful thoughts on that on Governor Huckabee's blog. Head over there for a look!
Tuesday, July 22, 2008
Infrastructure as Economic Stimulus
Infrastructure is an issue that merits attention. We must re-vamp our electrical distribution infrastructure to accommodate wind and solar power generation. We must establish infrastructure for ethanol -- pipelines, rail cars and truck transport. With hydrogen fuel for automobiles on the horizon, we need to look at establishing an infrastructure to distribute and retail that fuel. Natural gas powered vehicles also need filling stations. Our highways are in need of attention -- especially many of our bridges which are aged. The extreme growth of metropolitan areas such as Austin, Texas, have left a gap in the road system of those cities. We need port terminals for LNG offloading and for receiving oil that hopefully will soon be pumped on the outer continental shelf. We need new rail and high-speed transit facilities. And the list goes on.
Texas currently has a budget surplus created by the growth in the economy and from high oil prices. It needs to go into some form of revolving fund for infrastructure. Now, even some Democrats are "getting it" as far as infrastructure goes. Construction requires workers. Workers spend money. That stimulates business. Business works more efficiently when infrastructure is in place to move energy to where it is needed. It all works together to fuel our economy which generates more taxes -- even at lower rates. Let's stimulate the economy by spending money on infrastructure.
Texas currently has a budget surplus created by the growth in the economy and from high oil prices. It needs to go into some form of revolving fund for infrastructure. Now, even some Democrats are "getting it" as far as infrastructure goes. Construction requires workers. Workers spend money. That stimulates business. Business works more efficiently when infrastructure is in place to move energy to where it is needed. It all works together to fuel our economy which generates more taxes -- even at lower rates. Let's stimulate the economy by spending money on infrastructure.
Monday, July 21, 2008
Energy -- Let It Flow
While Congress continues to do battle over the energy crisis, private industry is stepping up with projects that will help more than anything Congress can do. The best place to start is to get oil into our refineries and to turn it into gasoline. Canadian oil is a good potential source. Too bad the refineries are a long way south of there.
When will the Democrats learn that a free market is the best solution to our energy woes? Instead, they want to penalize investors who see energy as an opportunity. Go figure....
What we really need is a plan to get off of high center and become Energy Independent.
When will the Democrats learn that a free market is the best solution to our energy woes? Instead, they want to penalize investors who see energy as an opportunity. Go figure....
What we really need is a plan to get off of high center and become Energy Independent.
Subsidies, Trade, Agriculture and Security
Rising global food prices have created some interesting dynamics in recent trade discussions. In the past, agricultural subsidies and import/export tariffs have been a sticking point in any negotiations. One reason for this is that many countries wish to protect their agriculture industry due to security concerns. If world agricultural product prices are low, many industrialized countries cannot compete on the world market. Their producers are threatened with failure. So, the governments of those highly developed economies typically subsidize their farmers in some fashion so that they can remain in business and thus keep agriculture viable.
With high food prices, the subsidies are not as necessary to maintain viability for famers in advanced economies. They can compete with low-cost producers such as Brazil. This provides the opportunity for those governments to offer a cut in farm subsidies in exchange for things like reduced import tariffs for manufactured goods in countries that have erected barriers to protect their industry for reasons similar to industrialized countries protecting agriculture.
Ultimately, the most efficient way to allocate the world's resources is with a completely open, free market. This of course would necessitate that the world's governments all feel safe enough from their neighbors to believe that dropping protective barriers is prudent. Those barriers are like an economic stockade or fort. Just as a country seeks to protect itself militarily, it must protect itself economically.
In the last 30 years, the U.S. has exposed itself economically, yet has maintained its world preeminence in some respects, by its military power. Countries fear to take economic retaliation on the U.S. because of the potential for an overwhelming military response. Our dependence on foreign oil has weakened our position. We now are at extreme risk due to our high dependence on foreign sources of petroleum. Have we stretched our military capacity to the point that the military threat is less likely to offset that economic threat?
We must achieve energy self-sufficiency. We also must remain vigilant to maintain our food security. The greatest strength of our country is our economic system. It is also our greatest point of vulnerability. If we are hostage to foreign sources of energy -- or, through exposing our agricultural sector to extreme market vulnerability by eliminating a system of price subsidies -- we offer ourselves to the mercy of our enemies.
With high food prices, the subsidies are not as necessary to maintain viability for famers in advanced economies. They can compete with low-cost producers such as Brazil. This provides the opportunity for those governments to offer a cut in farm subsidies in exchange for things like reduced import tariffs for manufactured goods in countries that have erected barriers to protect their industry for reasons similar to industrialized countries protecting agriculture.
Ultimately, the most efficient way to allocate the world's resources is with a completely open, free market. This of course would necessitate that the world's governments all feel safe enough from their neighbors to believe that dropping protective barriers is prudent. Those barriers are like an economic stockade or fort. Just as a country seeks to protect itself militarily, it must protect itself economically.
In the last 30 years, the U.S. has exposed itself economically, yet has maintained its world preeminence in some respects, by its military power. Countries fear to take economic retaliation on the U.S. because of the potential for an overwhelming military response. Our dependence on foreign oil has weakened our position. We now are at extreme risk due to our high dependence on foreign sources of petroleum. Have we stretched our military capacity to the point that the military threat is less likely to offset that economic threat?
We must achieve energy self-sufficiency. We also must remain vigilant to maintain our food security. The greatest strength of our country is our economic system. It is also our greatest point of vulnerability. If we are hostage to foreign sources of energy -- or, through exposing our agricultural sector to extreme market vulnerability by eliminating a system of price subsidies -- we offer ourselves to the mercy of our enemies.
Sunday, July 20, 2008
Interlude
Hello all. We have had a family reunion. It has been crazy. That's why no blog for the last few days. I hope to get back to speed tomorrow.
Thursday, July 17, 2008
Speaking Before a Hostile Crowd: McCain
Senator McCain is demonstrating that he can handle foreign policy. Even with potentially hostile situations, he is able to reach out by finding common ground. Being able to deal with those who are openly opposed to you is difficult for many. I think that at times in his career it has been difficult for John McCain. He seems to be overcoming that difficulty.
It is sad that so many people vote for reasons that are not directly tied to the policies or positions of a candidate nor are they tied to their abilities to handle the office. They are often a matter of gender, of race, or of looks. Demonstrated leadership is important. Charisma is NOT the best criteria for selection. Look what that did for us under "what is the definition of is" Clinton. Senator McCain is showing us that he has what it takes to be President.
It is sad that so many people vote for reasons that are not directly tied to the policies or positions of a candidate nor are they tied to their abilities to handle the office. They are often a matter of gender, of race, or of looks. Demonstrated leadership is important. Charisma is NOT the best criteria for selection. Look what that did for us under "what is the definition of is" Clinton. Senator McCain is showing us that he has what it takes to be President.
Tuesday, July 15, 2008
Water Resource Planning
Growing up in West Texas, one learns to appreciate water. The area in which I was raised is one of the prime agricultural areas of the state -- thanks to the Ogallala Acquifer. If it wasn't for that acquifer, it would be a dry place indeed.
The demands for good, clean drinking water are increasing as populations grow. Not only is that water needed for drinking, it is needed for agriculture. The world cannot feed itself without irrigation. Developing and maintaining our water resources is crucial to our survival.
There are water deficit areas and water surplus areas throughout the world. It would be great if we could pipe water from the surplus areas to the deficit areas. The problem is, water runs downhill but has to be pumped up hill. Most surplus areas are at lower elevations while deficit areas are at the higher ones.
It doesn't make a lot of sense to take water from deficit areas -- such as the Texas Panhandle -- and send it downhill to Dallas. Especially when it draws from an acquifer that is already being slowly depleted by its primary user -- agriculture.
Perhaps it is time for Texas to take a hard look at the state's overall water situation and develop a plan for the future. If we don't, we may severly handicap our children and grandchildren by our failure.
The demands for good, clean drinking water are increasing as populations grow. Not only is that water needed for drinking, it is needed for agriculture. The world cannot feed itself without irrigation. Developing and maintaining our water resources is crucial to our survival.
There are water deficit areas and water surplus areas throughout the world. It would be great if we could pipe water from the surplus areas to the deficit areas. The problem is, water runs downhill but has to be pumped up hill. Most surplus areas are at lower elevations while deficit areas are at the higher ones.
It doesn't make a lot of sense to take water from deficit areas -- such as the Texas Panhandle -- and send it downhill to Dallas. Especially when it draws from an acquifer that is already being slowly depleted by its primary user -- agriculture.
Perhaps it is time for Texas to take a hard look at the state's overall water situation and develop a plan for the future. If we don't, we may severly handicap our children and grandchildren by our failure.
Inflation or Fuel Surcharge?
Inflation? We don't have inflation. What we have is a fuel cost surcharge rippling through our economy. It affects the price of everything.
What can be done about it? Produce more energy -- quickly. The law of supply and demand are immutable in spite of what the Democrats tell you. We can work on both sides of the equation -- for that's what it is. Price is set based on the equilibrium point of supply and demand. Taxes and regulations artificially raise that point. The most efficient mechanism for determining price is a free market.
We need to learn to conserve and we need to produce more energy. The quickest way to drive down energy prices is to glut the market with an abundant supply of energy. All forms of energy are affected but the one on every one's mind right now is the price of gasoline. We need more oil and we need it quickly.
Most of the oil rigs available are being used currently. We need more rigs and we need them working now -- on the Outer Continental Shelf, in ANWR and anywhere else where there are untapped reserves.
Let's wean ourselves from foreign oil. Let's establish our Energy Independence. Join Senator John Cornyn in his efforts.
Related: U.S. Senator John Cornyn has posted a guest post at RedState.
What can be done about it? Produce more energy -- quickly. The law of supply and demand are immutable in spite of what the Democrats tell you. We can work on both sides of the equation -- for that's what it is. Price is set based on the equilibrium point of supply and demand. Taxes and regulations artificially raise that point. The most efficient mechanism for determining price is a free market.
We need to learn to conserve and we need to produce more energy. The quickest way to drive down energy prices is to glut the market with an abundant supply of energy. All forms of energy are affected but the one on every one's mind right now is the price of gasoline. We need more oil and we need it quickly.
Most of the oil rigs available are being used currently. We need more rigs and we need them working now -- on the Outer Continental Shelf, in ANWR and anywhere else where there are untapped reserves.
Let's wean ourselves from foreign oil. Let's establish our Energy Independence. Join Senator John Cornyn in his efforts.
Related: U.S. Senator John Cornyn has posted a guest post at RedState.
Monday, July 14, 2008
A RISKy Game
Have you ever played RISK? It is a strategic board game in which you assign armies to the countries which you hold. You then attack other countries or defend your own if being attacked. The object is to gain complete control of all of the countries represented on the board. The game is great for teaching basic strategic thinking.
Generally there are two basic types of players of the game. One is defensive -- always worried about holding onto what they have. They tend to play reactively. If attacked in a specific place, they quickly build up armies in that place in order to defend against the next attack. They are motivated by the fear of losing. The other type of player is offensive in nature. They are always on the attack. They look for and probe weaknesses in their opponents. They will often sacrifice some areas for the sake of an overall strategic plan. They usually win.
Mr. Obama seems to be the first type of player. Let's put 10 armies on Afghanistan. We don't need them in Iraq anymore because we haven't been attacked there lately. I don't like losing. Do you? Then why back a loser?
Generally there are two basic types of players of the game. One is defensive -- always worried about holding onto what they have. They tend to play reactively. If attacked in a specific place, they quickly build up armies in that place in order to defend against the next attack. They are motivated by the fear of losing. The other type of player is offensive in nature. They are always on the attack. They look for and probe weaknesses in their opponents. They will often sacrifice some areas for the sake of an overall strategic plan. They usually win.
Mr. Obama seems to be the first type of player. Let's put 10 armies on Afghanistan. We don't need them in Iraq anymore because we haven't been attacked there lately. I don't like losing. Do you? Then why back a loser?
Sunday, July 13, 2008
Polarizing America
One of the most polarizing figures of recent times tells us that we are becoming more polarized as a society. I'll bet that he has no clue what role he has played in defining that polarity.
We like to be around those who are like us. Astounding isn't it? Hasn't it always been that way? If you look around our country you will see that those of similar ethnic descent tend to live in the same neighborhood. Those of similar occupations live near each other. Those in similar positions within the hierarchy of business live near each other. Wait -- I'm saying that farmers and farm workers live near farms. Factory workers live near factories. The wealthy live where they have neighbors with big houses -- don't want to hurt property values with smaller houses moving in now do we?
The real polarity is that of ideas. It is the differences in how we look at the world. Do we fear our neighbor or do we cherish them? Are we out to conquer the world or do we feel like we are victims? Do we follow the crowd or do we strike out on our own? The older I get, the more I see patterns in how people behave and think based on an underlying philosophy that is either inward focused or outward focused. I'm not referring to big egos. I'm referring to whether one sees themself as a victim or as a conquerer -- whether the "world is out to get me" or, "bring it on, world."
Then again, there are the wolves and sharks. But, that's a whole 'nother post....
We like to be around those who are like us. Astounding isn't it? Hasn't it always been that way? If you look around our country you will see that those of similar ethnic descent tend to live in the same neighborhood. Those of similar occupations live near each other. Those in similar positions within the hierarchy of business live near each other. Wait -- I'm saying that farmers and farm workers live near farms. Factory workers live near factories. The wealthy live where they have neighbors with big houses -- don't want to hurt property values with smaller houses moving in now do we?
The real polarity is that of ideas. It is the differences in how we look at the world. Do we fear our neighbor or do we cherish them? Are we out to conquer the world or do we feel like we are victims? Do we follow the crowd or do we strike out on our own? The older I get, the more I see patterns in how people behave and think based on an underlying philosophy that is either inward focused or outward focused. I'm not referring to big egos. I'm referring to whether one sees themself as a victim or as a conquerer -- whether the "world is out to get me" or, "bring it on, world."
Then again, there are the wolves and sharks. But, that's a whole 'nother post....
Spin City
Talk about Spin -- recent legislative victories on measures favored by the President are being accredited to a new willingness to compromise on his part. Supposedly his "lame duck" status doesn't sit well with the administration and they are wanting to go out with a solid string of accomplishments.
I think the recent legislative victories are instead the result of the politics of the 2008 Presidential race. The Dems are seeing the need to give-in to the President on several issues because their candidate is needing the approval of the American public. His recent moves to the center are signalling to his cohorts that there are issues about which the majority of Americans care and Congress needs to support him in that move. You add to that the extremely low approval ratings of Congress and you have additional pressure on lawmakers. There are a lot of them fearful for their jobs as they head toward the fall.
It is pure pragmatism that moves the vote. Further stonewalling of these important measures by a Democrat controlled House and Senate would be seen by the public for what it is -- pure partisan politics. They are merely trying to assuage the fears of the average voter that a Democrat in the Executive plus Democrat control of Congress would be pure disaster.
I think the recent legislative victories are instead the result of the politics of the 2008 Presidential race. The Dems are seeing the need to give-in to the President on several issues because their candidate is needing the approval of the American public. His recent moves to the center are signalling to his cohorts that there are issues about which the majority of Americans care and Congress needs to support him in that move. You add to that the extremely low approval ratings of Congress and you have additional pressure on lawmakers. There are a lot of them fearful for their jobs as they head toward the fall.
It is pure pragmatism that moves the vote. Further stonewalling of these important measures by a Democrat controlled House and Senate would be seen by the public for what it is -- pure partisan politics. They are merely trying to assuage the fears of the average voter that a Democrat in the Executive plus Democrat control of Congress would be pure disaster.
Saturday, July 12, 2008
More on Energy Independence Days
Powerline Blog has a guest post from U.S. Senator John Cornyn in which the Senator blasts the leadership of Nancy Pelosi and her Democrat co-horts on the energy issues that we face. Head over there and read what he says and then drop by the Energy Independence Days posts on the Senator's blog. The next few days promise to be interesting with posts from former Speaker Newt Gingrich and Alaska Governor Sarah Palin.
A Good Man Takes His New Assignment
He was a good one.
Tony Snow, the former White House press secretary and conservative pundit who bedeviled the press corps and charmed millions as a FOX News television and radio host, has died after a long bout with cancer. He was 53. (see story here)
Photo source: Fox News
Friday, July 11, 2008
Energy Independence Days
U.S. Senator John Cornyn has declared war on our dependence on foreign oil. He has created a special emphasis on his website called “Energy Independence Days” in which there will be a series of posts including videos from Senator Cornyn on the subject of how we might achieve our Energy Independence.
I am thankful that the Senator has taken the best interests of the American people to heart and created this opportunity for the people of this state and nation to have input, as he helps through his leadership, to set our lawmakers on course to address this critical issue. I pray that solutions can be developed through the private and public initiatives that are a hallmark of this great nation. I am humbled to have the opportunity to provide a guest post on the Senator’s website. Thank you Senator Cornyn for all that you do for our state and our country.
I am thankful that the Senator has taken the best interests of the American people to heart and created this opportunity for the people of this state and nation to have input, as he helps through his leadership, to set our lawmakers on course to address this critical issue. I pray that solutions can be developed through the private and public initiatives that are a hallmark of this great nation. I am humbled to have the opportunity to provide a guest post on the Senator’s website. Thank you Senator Cornyn for all that you do for our state and our country.
Thursday, July 10, 2008
The Mental Politics of Recessionary Thinking
One of my former Senators who now advises Presidential candidate John McCain has the Dems stirred up about the economy today. What is most interesting is that he is right. The American public is unduly influenced by the doom-and-gloomers of the media as to the condition of our economy. The media is playing into the hands of the Dems because that is who most of them support. The frenzy is self-feeding because the more it is hyped, the greater the impact of that hype on both the actual economy and the attitude of the people toward the economy.
Those who have a positive outlook are reaping the rewards. Those who fear to move forward are creating losses for themselves because of retrenching actions. It is the difference between being proactive and being reactive. Face forward, move forward and move on. The U.S. still has far and away the best economic system on the planet. It works.
Those who have a positive outlook are reaping the rewards. Those who fear to move forward are creating losses for themselves because of retrenching actions. It is the difference between being proactive and being reactive. Face forward, move forward and move on. The U.S. still has far and away the best economic system on the planet. It works.
A President's Roots
I usually avoid reading articles that target our President. It seems obvious that the press think him to be "less-than-polished" as a speaker and often disagree vehemently with his views. It's probably because they are clueless about the type of individual that I believe him to be.
The President grew up in the rough-and-tumble of the oil patch of West Texas. Yes, I know that his roots lie in the well-worn soil of New England's elite, but his formative years were in an environment that is known for action, not talk; overcoming adversity, not giving in to fears; domination of the elements, not hand-wringing over what nature throws at you. I believe that there is an element in his character that is much closer to the common, everyday, hardworking people of this nation than it is to the self-styled elite of the Washington and international jet-setting crowd. He is caught between the two worlds.
Perhaps that is why the mainstream media, the "old-world superiority complex" of Europe and the "snobbery" of New England and California hate him. It is because they don't see him as one of the elite. He doesn't fit their expectations. He hasn't bowed to the requisite "polish" that is expected by them. He has retained that element of the average citizen that ties him to their values.
When the music fades and his tenure in the Presidency is only a memory, I believe that history will treat him kindly. Time has a way of changing perspective. No longer will minor idiosyncrasies get in the way of thoughtful, honest evaluations of effectiveness and character. He will be remembered well. Thank you, Mr. President, for holding on to the values of Middle America -- the "flyover" country that our East and West Coast brethren demean as the land of the uncouth, unwashed servants of their elitist agenda.
The President grew up in the rough-and-tumble of the oil patch of West Texas. Yes, I know that his roots lie in the well-worn soil of New England's elite, but his formative years were in an environment that is known for action, not talk; overcoming adversity, not giving in to fears; domination of the elements, not hand-wringing over what nature throws at you. I believe that there is an element in his character that is much closer to the common, everyday, hardworking people of this nation than it is to the self-styled elite of the Washington and international jet-setting crowd. He is caught between the two worlds.
Perhaps that is why the mainstream media, the "old-world superiority complex" of Europe and the "snobbery" of New England and California hate him. It is because they don't see him as one of the elite. He doesn't fit their expectations. He hasn't bowed to the requisite "polish" that is expected by them. He has retained that element of the average citizen that ties him to their values.
When the music fades and his tenure in the Presidency is only a memory, I believe that history will treat him kindly. Time has a way of changing perspective. No longer will minor idiosyncrasies get in the way of thoughtful, honest evaluations of effectiveness and character. He will be remembered well. Thank you, Mr. President, for holding on to the values of Middle America -- the "flyover" country that our East and West Coast brethren demean as the land of the uncouth, unwashed servants of their elitist agenda.
Wednesday, July 9, 2008
Pelosi's "Strategic" Solution to Fuel Prices
Maybe I'm confused in my understanding of the word "strategic," but it seems to me that if there was ever a time to have the strategic petroleum reserve (SPR) full it is now. When we look at the turmoil in the Middle East, the surging demand for petroleum by China and the potential for supply disruptions throughout the world by terrorists -- not to mention the roadblocks to increased production that are being erected by the Democrats in Congress, this is the time to be certain we have a supply of oil to meet critical needs in the event of a major catastrophe. Yet Nancy Pelosi in all her wisdom wants to draw down the SPR to alleviate gasoline prices but is unwilling to support increased production domestically. Whose side is she on anyway?
Tuesday, July 8, 2008
Of Course He Hasn't Shifted Positions
I don't know about you, but I believe Obama when he says that he hasn't shifted his positions on key issues in order to appeal to the political center. Of course he hasn't shifted his positions. He may be saying things that make it sound like he has, but that is something altogether entirely different.
Opportunities for Doing the Right Thing Abound
In a post earlier today, I referred to the Lesser Prairie Chicken (LPC) as a possible reason for Mr. Pickens' need for a $10 million media blitz on his new energy plan. Upon further research, I find that he has the opportunity to do something that could have the potential for aiding the Lesser Prairie Chicken while furthering his plans for wind energy development and heading off potential future challenges if the LPC were to eventually be declared endangered.
The Texas Parks & Wildlife Department offers a program called the "Candidate Conservation Agreement with Assurances (CCAA)" which can provide protection for both the Lesser Prairie Chicken and Mr. Pickens in the event of a change in status for the LPC. The CCAA is an agreement whereby the landowner can enter into a voluntary program for developing and maintaining habitat for the LPC through a wildlife management plan developed in coordination with a Parks & Wildlife biologist. The agreement provides assurances that the landowner will not be subject to further use restrictions or conditions should the LPC be declared endangered. This could truly be a benefit to Boone and to the LPC.
The issue of Wildlife and Wind Development is something that is critically important as we move forward with alternative energy development. An conference regarding those issues will be held August 8 - 9 in Amarillo, Texas. The Panhandle Wind and Wildlife Conference will be an opportunity for education as well as a venue for discussing the various issues regarding wind energy development and wildlife interactions. Information about the conference can be found here.
Pipelines for Alaskans
Alaska is a resource treasure trove. It is difficult to access and develop that treasure. The environmental extremists will fight tooth-and-nail for every last inch of the state to remain undeveloped.
Governor Palin is doing what is in the best interest of the people of her state and of this nation by working to develop the necessary infrastructure to gain access to those hard-to-reach resources. I applaud her willingness to face the pressure of the anti-development crowd. I hope that she ensures that the development will be done in a manner that is sensitive to some of the critical habitats that could be affected. It's all about balance.
Governor Palin is doing what is in the best interest of the people of her state and of this nation by working to develop the necessary infrastructure to gain access to those hard-to-reach resources. I applaud her willingness to face the pressure of the anti-development crowd. I hope that she ensures that the development will be done in a manner that is sensitive to some of the critical habitats that could be affected. It's all about balance.
Pickens Energy Plan and Media Blitz
Why would Boone Pickens spend $10 million on an ad campaign to boost his energy plans? His newest "big" project is the development of a mega wind-generation field in the Texas Panhandle. I wonder if it could be that his site is located in one of the last remaining habitats for the Lesser Prairie Chicken? I don't know, but based on the map and my knowlege of the area, it could be a factor.
The Lesser Prairie Chicken is on the list to be considered for Endangered Status. It is far enough down the list that it hasn't yet received much attention but it could. There hasn't been a public outcry yet, so why is Boone spending so much on his media blitz? I wonder....
The Lesser Prairie Chicken is on the list to be considered for Endangered Status. It is far enough down the list that it hasn't yet received much attention but it could. There hasn't been a public outcry yet, so why is Boone spending so much on his media blitz? I wonder....
Sunday, July 6, 2008
Character: Measuring the Course
One of the marks of a great person is the willingness to stand by a higher ideal or measure than the average man. One of the things that I believe sets President George W. Bush above the crowd is his willingness to stand by his commitments and beliefs -- even in the face of opposition and attack. To some, this can be seen as a weakness.
I think it is a matter of personal integrity when you view such character as to whether it is strength or weakness. To me, a true friend is one who will stand by you no matter what. An honorable man is one who after giving his word will keep it -- even to his own detriment. Those who would change their mind at every whim or according to the most recent poll are less than a man.
It seems to be the vogue to focus on one's self-interest. It is what is taught us by television, movies, popular personalities and political candidates. It requires true character to define oneself in the realm of right and wrong. Right and wrong don't change. Circumstances can change, courses sometimes must be adjusted, but once committed one needs to stay the course even when it hurts to do so -- if it is the right thing to do.
The young Senator from Illinois has not learned that lesson. It is clear that his mindset is "all about me." It reminds me of a recent President who defined words based on whether they were in his own self interest. How could we even consider going back to that?
I think it is a matter of personal integrity when you view such character as to whether it is strength or weakness. To me, a true friend is one who will stand by you no matter what. An honorable man is one who after giving his word will keep it -- even to his own detriment. Those who would change their mind at every whim or according to the most recent poll are less than a man.
It seems to be the vogue to focus on one's self-interest. It is what is taught us by television, movies, popular personalities and political candidates. It requires true character to define oneself in the realm of right and wrong. Right and wrong don't change. Circumstances can change, courses sometimes must be adjusted, but once committed one needs to stay the course even when it hurts to do so -- if it is the right thing to do.
The young Senator from Illinois has not learned that lesson. It is clear that his mindset is "all about me." It reminds me of a recent President who defined words based on whether they were in his own self interest. How could we even consider going back to that?
Saturday, July 5, 2008
Tomato Industry Bust Now Lets Tank the Jalapeno Growers
Losses to the tomato industry mount and we still don't know the cause of the salmonella outbreak. Why? Because it's extremely difficult to track down is why.
People panic. The media hypes the danger. We all lose.
It will be a long time before the tomato industry recovers the $100 million plus that it has lost during this debacle. Now the jalapeno growers are facing a similar situation.
The Democrats are using the issue to push for more controls. "Let's have farm of origin labelling," the say. They don't stop to think of the cost. Add the cost of implementation to the $100 million already lost and the tomato industry may never recover. So, let's throw government money at the problem. Either way, the consumer will pay for it. We will face much higher prices for tomatoes for some time now because of shortages.
Dear consumer: WASH YOUR FOOD WHEN PREPARING IT! It won't cure all ills but it will help. Be thankful for such an abundant supply and assortment.
People panic. The media hypes the danger. We all lose.
It will be a long time before the tomato industry recovers the $100 million plus that it has lost during this debacle. Now the jalapeno growers are facing a similar situation.
The Democrats are using the issue to push for more controls. "Let's have farm of origin labelling," the say. They don't stop to think of the cost. Add the cost of implementation to the $100 million already lost and the tomato industry may never recover. So, let's throw government money at the problem. Either way, the consumer will pay for it. We will face much higher prices for tomatoes for some time now because of shortages.
Dear consumer: WASH YOUR FOOD WHEN PREPARING IT! It won't cure all ills but it will help. Be thankful for such an abundant supply and assortment.
Friday, July 4, 2008
Thursday, July 3, 2008
More Climate Change Hype
The big news out of the G8 Summit is that the U.S. is doing the least of any industrialized nation to combat climate change. Huh?! We're talking seriously biased headlines designed to disseminate disinformation in order to further someone's agenda.
First, consider who commissioned the study -- the World Wildlife Fund. Do we sense a possible bias developing here?
Second, consider the current state of pollution/emissions technology and its level of implementation within each of the countries in the "study." Oh, wait, that wasn't considered so, we don't have a good starting point for comparison.
Third, was the export of aid and technology to other countries considered? U.S. companies are leading the way in developing and providing technology to other countries to reduce their emissions of harmful gases into the atmosphere -- and I'm not talking about CO2, I'm talking about particulates and poisonous gases such as SO2, CO, etc.
Fourth, what about private initiative? Our form of government (although sometimes heavy-handed) is such that it encourages private initiative rather than government mandates. Were those measured in the "study?"
The alarmist, agenda-driven headlines are designed to create a public outrage. I'm thankful that the American public is learning to see beyond the rhetoric (I think -- er, hope).
First, consider who commissioned the study -- the World Wildlife Fund. Do we sense a possible bias developing here?
Second, consider the current state of pollution/emissions technology and its level of implementation within each of the countries in the "study." Oh, wait, that wasn't considered so, we don't have a good starting point for comparison.
Third, was the export of aid and technology to other countries considered? U.S. companies are leading the way in developing and providing technology to other countries to reduce their emissions of harmful gases into the atmosphere -- and I'm not talking about CO2, I'm talking about particulates and poisonous gases such as SO2, CO, etc.
Fourth, what about private initiative? Our form of government (although sometimes heavy-handed) is such that it encourages private initiative rather than government mandates. Were those measured in the "study?"
The alarmist, agenda-driven headlines are designed to create a public outrage. I'm thankful that the American public is learning to see beyond the rhetoric (I think -- er, hope).
Wednesday, July 2, 2008
Senator Cornyn Pushes Gas Price Reduction Act of 2008
As our nation struggles with the impact of high fuel prices we see little concrete action from our elected officials. It is frustrating that the wheels of government do not seem to be moving on this critical issue.
One exception to this inertia is the continued push by Senator John Cornyn for comprehensive legislation that would not only provide near-term relief for consumers but would pave the way for future energy independence. I pray that he will continue to take the fight to the Democrat controlled Senate on behalf of the U.S. consumer.
One exception to this inertia is the continued push by Senator John Cornyn for comprehensive legislation that would not only provide near-term relief for consumers but would pave the way for future energy independence. I pray that he will continue to take the fight to the Democrat controlled Senate on behalf of the U.S. consumer.
Sarah Palin for Vice President
Sarah Palin for Vice President. I'll be honest, a short time ago I had never heard of her. The more I dig into the available information about her the more I am impressed.
Governor Palin has a solid record as a politician that demonstrates the highest levels of personal integrity and a willingness to take on the establishment on behalf of the people of her state. She is pro-life, pro-business, independent, self-reliant and willing to stand up for what she believes.
She has been mentioned as a possible running mate for Senator McCain in his race for the Presidency. She could draw the evangelical vote, the womens vote and the NRA vote. The only problem that I see for McCain is that she might outshine him.
One of the first things that I learned in business is that you try to hire the best and the brightest for your company. If they are smarter than you, that is good. If they bring talents, abilities and strengths that offset your weaknesses, that is better. Sarah Palin's strengths cover the gaps for Senator McCain. I believe she would be a tremendous asset to his team.
Governor Palin has a solid record as a politician that demonstrates the highest levels of personal integrity and a willingness to take on the establishment on behalf of the people of her state. She is pro-life, pro-business, independent, self-reliant and willing to stand up for what she believes.
She has been mentioned as a possible running mate for Senator McCain in his race for the Presidency. She could draw the evangelical vote, the womens vote and the NRA vote. The only problem that I see for McCain is that she might outshine him.
One of the first things that I learned in business is that you try to hire the best and the brightest for your company. If they are smarter than you, that is good. If they bring talents, abilities and strengths that offset your weaknesses, that is better. Sarah Palin's strengths cover the gaps for Senator McCain. I believe she would be a tremendous asset to his team.
Aging Infrastructure and Energy Needs
The strength of the U.S. economy is derived from many factors. One of the underlying strengths is our infrastructure. Our system of rails, roads, waterways, municipal services, electrical grids, fuel service stations, markets, irrigation canals and ports is unparalleled in the world. It allows our economy to function smoothly and efficiently.
That infrastructure is showing signs of aging. Part of the problems stemming from Hurricane Katrina and the recent flooding along the Mississippi River are a result of that aging infrastructure. It is something to which we as a country must attend in the coming decades or we will see a gradual decline of our strength.
As we examine that underpinning of our economy, we must consider our wise use of the energy resources at our disposal currently and the development of new energy technologies. If we truly desire to gain energy independence as a country we must lay a forward-thinking plan that will efficiently incorporate new technologies into our vision for revitalizing that infrastructure.
One area of infrastructure that needs close examination is that of energy conservation. By that I mean that roads and rails have profound influence on patterns of housing and business location. Growth of suburban areas create demands for new water, sewer and waste disposal as well as new power distribution systems. As our urban areas sprawl, we create demands on those services that require greater use of energy than if the development was more compact. That sprawl also adds to commute times and distances and thus the need for more roadways. The increased paving of roadways adds to the urban heat pockets which exacerbate the need for cooling during summer months.
Wide-area planning and zoning is a subject that creates difficulty for us true believers in free enterprise. After all, I have no desire for a government authority to come to me and say that I cannot sell my land to a housing developer -- it must remain in agriculture. However, it is something that we must consider as we look to the future and our ability to sustain strong economic growth and yet efficiently use our resources as a country.
The issue of energy independence is closely entangled with our infrastructure issues. It will take great wisdom to see the way to the future -- a future where my grandchildren will, I hope, enjoy the same opportunities that I enjoy today.
That infrastructure is showing signs of aging. Part of the problems stemming from Hurricane Katrina and the recent flooding along the Mississippi River are a result of that aging infrastructure. It is something to which we as a country must attend in the coming decades or we will see a gradual decline of our strength.
As we examine that underpinning of our economy, we must consider our wise use of the energy resources at our disposal currently and the development of new energy technologies. If we truly desire to gain energy independence as a country we must lay a forward-thinking plan that will efficiently incorporate new technologies into our vision for revitalizing that infrastructure.
One area of infrastructure that needs close examination is that of energy conservation. By that I mean that roads and rails have profound influence on patterns of housing and business location. Growth of suburban areas create demands for new water, sewer and waste disposal as well as new power distribution systems. As our urban areas sprawl, we create demands on those services that require greater use of energy than if the development was more compact. That sprawl also adds to commute times and distances and thus the need for more roadways. The increased paving of roadways adds to the urban heat pockets which exacerbate the need for cooling during summer months.
Wide-area planning and zoning is a subject that creates difficulty for us true believers in free enterprise. After all, I have no desire for a government authority to come to me and say that I cannot sell my land to a housing developer -- it must remain in agriculture. However, it is something that we must consider as we look to the future and our ability to sustain strong economic growth and yet efficiently use our resources as a country.
The issue of energy independence is closely entangled with our infrastructure issues. It will take great wisdom to see the way to the future -- a future where my grandchildren will, I hope, enjoy the same opportunities that I enjoy today.
Tuesday, July 1, 2008
A Statistical Dead Heat for the Presidency
The latest CNN poll shows McCain and Obama in a statistical dead heat. The real test will be in the electoral college. The distribution of their support is more important than the overall popular vote numbers. A majority of the popular vote does not mean the candidate will be elected.
Obama's Embrace of Faith-based Initiative?
Obama is bombarding the MSM with press opportunities regarding his faith. His aggressive campaign to offset the many remarks about his faith is a political necessity. However, on two key issues to the evangelical vote he is at the opposite end of the spectrum. Those issues are gay/lesbian rights/marriage and abortion. The evangelical vote will be a moral vote. It is also typically a high-percentage conservative vote. There are evangelical Christians who place social issues in the Democratic camp -- that is pour money into them. The majority however, are more likely to see most social issues as needing shoe leather -- not more government programs. Issues such as poverty, crime, the disintegration of the family, etc. require Christian foot soldiers reaching into needy communities. Evangelicals often see government programs as detrimental to their efforts. Mr. Obama may be disappointed in his effect on the evangelical community.
Free Trade and Relationships
Like it or not, free trade is the cornerstone of our economic system. Each community, each region, each country has a competitive advantage in the production of a particular good or service. In order to have the most efficient utilization of labor, capital and materials, we must allow those competitive advantages to develop within the marketplace.
When obstructionist policies are erected by governments in the form of trade barriers, we create inefficiencies. Occasionally they are necessary due to national security issues. Usually they are erected to protect special interest groups.
Recently, the Democrats in the Senate and House saw fit to kill a Free Trade Agreement with Colombia. The result is higher prices on some goods and services to Americans and less profit for some U.S. businesses who would have a competitive advantage for selling products to Colombia. It is a case where the greater benefits of the agreement would have gone to the U.S. because of import taxes and restrictions on the Colombian end of the agreement.
Colombia has become one of the few good relationships that the U.S. has developed in Latin America in recent years. We have poured many dollars into aiding them in their war against the drug cartels. We need to strengthen that relationship.
We also need to strengthen our relationship with our nearest neighbor to the south. President Bush has attempted to strengthen those ties but it has been difficult. Much of that difficulty lies in the economic unrest within Mexico which drives their citizens to seek employment north of the border (usually illegally). Strengthening the Mexican economy is in our best interest.
I applaud Senator McCain for reaching out to both the Colombian and Mexican governments. As we approach the fall elections we must keep in mind that relationships with our friends to the south are critical to our own future economic and political stability. On the other hand, Obama would like to withdraw from the North American Free Trade Agreement as punitive action against Mexico on immigration. So, McCain would "reach out" while Obama would seek to punish. It is clear to me that Senator McCain is working in our best interests while Obama's actions would only further damage our relationship and rather than aiding the immigration problem, would exacerbate it by the damage to the Mexican economy.
When obstructionist policies are erected by governments in the form of trade barriers, we create inefficiencies. Occasionally they are necessary due to national security issues. Usually they are erected to protect special interest groups.
Recently, the Democrats in the Senate and House saw fit to kill a Free Trade Agreement with Colombia. The result is higher prices on some goods and services to Americans and less profit for some U.S. businesses who would have a competitive advantage for selling products to Colombia. It is a case where the greater benefits of the agreement would have gone to the U.S. because of import taxes and restrictions on the Colombian end of the agreement.
Colombia has become one of the few good relationships that the U.S. has developed in Latin America in recent years. We have poured many dollars into aiding them in their war against the drug cartels. We need to strengthen that relationship.
We also need to strengthen our relationship with our nearest neighbor to the south. President Bush has attempted to strengthen those ties but it has been difficult. Much of that difficulty lies in the economic unrest within Mexico which drives their citizens to seek employment north of the border (usually illegally). Strengthening the Mexican economy is in our best interest.
I applaud Senator McCain for reaching out to both the Colombian and Mexican governments. As we approach the fall elections we must keep in mind that relationships with our friends to the south are critical to our own future economic and political stability. On the other hand, Obama would like to withdraw from the North American Free Trade Agreement as punitive action against Mexico on immigration. So, McCain would "reach out" while Obama would seek to punish. It is clear to me that Senator McCain is working in our best interests while Obama's actions would only further damage our relationship and rather than aiding the immigration problem, would exacerbate it by the damage to the Mexican economy.
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