Economy rising faster than oil prices

[Tigermike 3,054]

Economy rising faster than oil prices

May 1, 2006

Gas prices are pushing $3 a gallon before Memorial Day, and yet the economy continues to boom. On Friday, the Commerce Department reported 4.8-percent economic growth in the first three months of 2006.  That's the fastest pace since the third quarter of 2003, suggesting the economy is not running on fumes. How can this be happening?

Higher oil prices are not strangling the economy. As economist Brian Wesbury pointed out in RealClearPolitics.com last week, at $75 a barrel, oil is still $10 cheaper (in inflation-adjusted terms) than it was at its peak in 1980. Efficiency is improving, too, thanks to improved technologies and garden-variety corporate self-interest.

Even though U.S. energy costs have risen by $244 billion since 2001, Wesbury says incomes have surged by $1.7 trillion - meaning that Americans have nearly $1.5 trillion more at their disposal even after they've filled up.

All of which makes the calls from some quarters in Washington to consider growth-stifling taxes and regulations on energy production foolhardy, indeed.

Rocky Mountain News

[Bottomfeeder 244]

So, again, we are seeing central bank governors predicting that we are going to see an adjustment down in the value of the U.S. dollar It seems the only thing being questioned is just how fast this adjustment will occur. Hopefully, we will see a slow and steady decline with an orderly adjustment of the world's economy, but the risk remains that we could see a more dramatic adjustment in the value of the U.S. dollar.

http://www.dailyreckoning.com/Writers/Butl...les/050106.html

http://www.cme.com/trading/prd/env/cmeedover14272.html

Bolivia's president orders army to natural gas fields

By ALVARO ZUAZO

Associated Press Writer

LA PAZ, Bolivia (AP) - President Evo Morales ordered soldiers to immediately occupy Bolivia's natural gas fields Monday and threatened to evict foreign companies unless they sign new contracts within six months giving Bolivia majority control over the entire chain of petroleum production.

http://blogs.usatoday.com/ondeadline/2006/...ian_army_s.html

http://www.nymex.com/ng_fut_cso.aspx

[TexasTiger 13,028]

Economy rising faster than oil prices

May 1, 2006

Gas prices are pushing $3 a gallon before Memorial Day, and yet the economy continues to boom. On Friday, the Commerce Department reported 4.8-percent economic growth in the first three months of 2006.   That's the fastest pace since the third quarter of 2003, suggesting the economy is not running on fumes. How can this be happening?

Higher oil prices are not strangling the economy. As economist Brian Wesbury pointed out in RealClearPolitics.com last week, at $75 a barrel, oil is still $10 cheaper (in inflation-adjusted terms) than it was at its peak in 1980. Efficiency is improving, too, thanks to improved technologies and garden-variety corporate self-interest.

Even though U.S. energy costs have risen by $244 billion since 2001, Wesbury says incomes have surged by $1.7 trillion - meaning that Americans have nearly $1.5 trillion more at their disposal even after they've filled up.

All of which makes the calls from some quarters in Washington to consider growth-stifling taxes and regulations on energy production foolhardy, indeed.

Rocky Mountain News

233233[/snapback]

I hope this is the theme Republicans run on this fall.

[Tigermike 3,054]

Economy rising faster than oil prices

May 1, 2006

Gas prices are pushing $3 a gallon before Memorial Day, and yet the economy continues to boom. On Friday, the Commerce Department reported 4.8-percent economic growth in the first three months of 2006.  That's the fastest pace since the third quarter of 2003, suggesting the economy is not running on fumes. How can this be happening?

Higher oil prices are not strangling the economy. As economist Brian Wesbury pointed out in RealClearPolitics.com last week, at $75 a barrel, oil is still $10 cheaper (in inflation-adjusted terms) than it was at its peak in 1980. Efficiency is improving, too, thanks to improved technologies and garden-variety corporate self-interest.

Even though U.S. energy costs have risen by $244 billion since 2001, Wesbury says incomes have surged by $1.7 trillion - meaning that Americans have nearly $1.5 trillion more at their disposal even after they've filled up.

All of which makes the calls from some quarters in Washington to consider growth-stifling taxes and regulations on energy production foolhardy, indeed.

Rocky Mountain News

233233[/snapback]

I hope this is the theme Republicans run on this fall.

233342[/snapback]

Just because the dims have been spewing lies and pessimism for the past five years in no way means the economy is in the trenches.

BTW speaking of campaign themes are you guys planning to stick with the "We hate Bush!" theme?

[Bottomfeeder 244]

LMAO at you guys. ABBC! Anybody But Bush or Clinton.

[DKW 86 7,441]

LMAO at you guys. ABBC! Anybody But Bush or Clinton.

233415[/snapback]

For once I agree with BF. Bush and Clinton are just proof positive that any idiot can attend and graduate from a Ivy League school.

[TexasTiger 13,028]

BTW speaking of campaign themes are you guys planning to stick with the "We hate Bush!" theme?

233353[/snapback]

I dunno. Maybe. It seems to be resonating. But I can't really let you in on our strategy sessions.

[TexasTiger 13,028]

LMAO at you guys. ABBC! Anybody But Bush or Clinton.

233415[/snapback]

For once I agree with BF. Bush and Clinton are just proof positive that any idiot can attend and graduate from a Ivy League school.

233467[/snapback]

Great job! You got a jab into the Ivy League, Clinton and you were willing to sacrifice Bush to do it-- of course, saying Bush is an idiot ain't sacrificing much. But c'mon. Hate him all day long if you want, disagree with everything he stands for if you want, but Clinton is brilliant. A poor kid who went to Georgetown on a scholarship, a poor kid who was a Rhodes Scholar and by all accounts, someone who sailed through Yale Law even while missing most of the fall semester campaigning in Texas for McGovern. Bush and Clinton are hardly in the same "league."

[BamaGrad03 0]

If Clinton is so smart....what's his excuse?

[DKW 86 7,441]

Bush, Kerry, Clinton, etc. are just very poor representation of any school. Bush and Kerry are no rocket scientists. Clinton is far more intelligent, but not as smart as he would like his legacy to read.

In 1996, Bill Clinton et al spent the entire campaign year telling America that the Republican's and Dole's idea to balance the budget by 2003 was just insane. He told us ad nauseum that It just could not happen. That the Republican "7 year plan" was just not workable. He then corrects himself in the SOTU Address in 97 and says 'by 2002.' BTW, the Budget balanced in 1998.

Just a taste... http://www.pbs.org/newshour/bb/budget/febr..._setup_2-6.html

Feb 6, 1997: PRESIDENT CLINTON: My plan balances the budget while maintaining the balance of our values. First, it eliminates the deficit by 2002 through detailed difficult cuts in hundreds of government programs.

http://www.concordcoalition.org/issues/fed...ole_090696.html

2. Late in 1995, President Clinton embraced (albeit with obvious reluctance) the goal of balancing the budget by 2002, using the cautious measurements of the Congressional Budget Office.

[TexasTiger 13,028]

Bush, Kerry, Clinton, etc. are just very poor representation of any school. Bush and Kerry are no rocket scientists. Clinton is far more intelligent, but not as smart as he would like his legacy to read.

In 1996, Bill Clinton et al spent the entire campaign year telling America that the Republican's and Dole's idea to balance the budget by 2003 was just insane. He told us ad nauseum that It just could not happen. That the Republican "7 year plan" was just not workable. He then corrects himself in the SOTU Address in 97 and says 'by 2002.' BTW, the Budget balanced in 1998.

Just a taste... http://www.pbs.org/newshour/bb/budget/febr..._setup_2-6.html

Feb 6, 1997: PRESIDENT CLINTON: My plan balances the budget while maintaining the balance of our values. First, it eliminates the deficit by 2002 through detailed difficult cuts in hundreds of government programs.

http://www.concordcoalition.org/issues/fed...ole_090696.html

2. Late in 1995, President Clinton embraced (albeit with obvious reluctance) the goal of balancing the budget by 2002, using the cautious measurements of the Congressional Budget Office.

233714[/snapback]

Most politicians grossly exaggerate how effective their plans will be. In this case, he didn't-- he used conservative numbers and the economy grew much faster than he promised.

But discretionary spending grew less under Clinton than any President in recent history. He showed more fiscal restraint, before and after he had a Republican Congress, but it certainly helped to have a Republican Congress, that at least initially, until they got too entrenched, was genuinely committed to spending less.

Here's a compliment to a Republican, Tigermike and David-- Newt Gingrich at least understood that governance was an obligation. Love him or hate him, he took his role seriously. His successors have just raided the henhouse.

[DKW 86 7,441]

His successors have just raided the henhouse.

Indeed, this whole Congress needs new jobs!

[Bottomfeeder 244]

His successors have just raided the henhouse.

Indeed, this whole Congress needs new jobs!

233798[/snapback]

With the exception of Ron Paul of Texas.

Congressman Ron Paul of Texas enjoys a national reputation as the premier advocate for liberty in politics today. Dr. Paul is the leading spokesman in Washington for limited constitutional government, low taxes, free markets, and a return to sound monetary policies based on commodity-backed currency. He is known among both his colleagues in Congress and his constituents for his consistent voting record in the House of Representatives: Dr. Paul never votes for legislation unless the proposed measure is expressly authorized by the Constitution. In the words of former Treasury Secretary William Simon, Dr. Paul is the "one exception to the Gang of 535" on Capitol Hill.

http://www.house.gov/paul/legis.shtml

His economic views oppose nearly all government intervention in the market. He voted against the Iraq War Resolution and continues to criticize the US presence in Iraq and what he charges is the use of the war on terror to curtail civil liberties.

He supports the abolition of the income tax, most Cabinet departments, and the Federal Reserve, and favors the legalization of marijuana and American withdrawal from the United Nations. He also endorses a non-interventionist foreign policy and defederalization of the healthcare system, opposes the death penalty and abortion, and is strongly opposed to a military draft. He has voted against amending the U.S. Constitution to ban same-sex marriage (although he opposes the Libertarian perspective on gay rights) and also against an amendment to prohibit flag-burning. He has also broken with his party by voting against the Patriot Act in 2001 and again in 2005. Paul's campaign slogan for 2004 was "The Taxpayers' Best Friend!" [3]. However, he is known for his support of restricting immigration, and is a member of the John Birch Society.

John Berthoud, president of the National Taxpayers Union, an organization that promotes lower tax rates, has said, "Ron Paul has always proven himself to be a leader in the fight for taxpayer rights and fiscal responsibility... No one can match his record on behalf of taxpayers." He is frequently considered an advocate of small business. Jack Harris, president of the National Federation of Independent Business, has said, "Congressman Ron Paul is a true friend of small business....He is committed to a pro-small-business agenda of affordable health insurance, lower taxes, tort reform, and the elimination of burdensome mandates."

http://en.wikipedia.org/wiki/Ron_Paul