Obama and the lobbyists

According to Mr. Obama, “John McCain’s campaign and the Republican National Committee are fueled by contributions from Washington lobbyists and special interest PACs.” 

According to Fact Check (http://www.factcheck.org/elections-2008/obamas_lame_claim_about_mccains_money.html ) “We find that to be a large exaggeration and a lame excuse. In fact, donations from PACs and lobbyists make up less than 1.7 percent of McCain’s total receipts, and they account for only about 1.1 percent of the RNC’s receipts.”

Furthermore, “As of the end of April, the McCain campaign had reported receiving $655,576 from lobbyists, according to the Center for Responsive Politics. That is less than seven-tenths of 1 percent of his total receipts of $96,654,783. His campaign also took in $960,990 from PACs, amounting to just under 1 percent of total receipts. The two sources combined make up less than 1.7 percent of his total.”

“The Republican National Committee has raised $143,298,225, of which only $135,000 has been come from lobbyists, according to the CRP. That’s less than one-tenth of 1 percent. It also took in about 1 percent of its receipts from PACs, CRP said. Taken together, that’s about 1.1 percent from PACs and lobbyists.”

Now compare that to Obama.  According to opensecret.org, Obama’s corporate and lobbyist receipts dwarf McCains significantly.  “The organizations themselves did not donate , rather the money came from the organization’s PAC, its individual members or employees or owners, and those individuals’ immediate families. Organization totals include subsidiaries and affiliates.

Because of contribution limits, organizations that bundle together many individual contributions are often among the top donors to presidential candidates. These contributions can come from the organization’s members or employees (and their families). The organization may support one candidate, or hedge its bets by supporting multiple candidates. Groups with national networks of donors – like EMILY’s List and Club for Growth – make for particularly big bundlers.”  Obama has the following receipts:

Goldman Sachs	$571,330
University of California	$437,236
UBS AG	$364,806
JPMorgan Chase & Co	$362,207
Citigroup Inc	$358,054
National Amusements Inc	$320,750
Lehman Brothers	$318,647
Google Inc	$309,514
Harvard University	$309,025
Sidley Austin LLP	$294,245
Skadden, Arps et al	$270,013
Time Warner	$262,677
Morgan Stanley	$259,876
Jones Day	$250,725
Exelon Corp	$236,211
University of Chicago	$218,857
Wilmerhale LLP	$218,680
Latham & Watkins	$218,615
Microsoft Corp	$209,242
Stanford University	$195,262

 

Obama likes to pretend that Fortune 500 company employees are all entirely independent individual donors, each contributing for no purpose greater or lesser than their belief in Hopenchange.  Hogwash!

Obama for or against free trade?

  Maybe he is not really against free trade afterall??????

In an interview with Fortune to be featured in the magazine’s upcoming issue, the presumptive Democratic nominee backed off his harshest attacks on the free trade agreement and indicated he didn’t want to unilaterally reopen negotiations on NAFTA.

“Sometimes during campaigns the rhetoric gets overheated and amplified,” he conceded, after I reminded him that he had called NAFTA “devastating” and “a big mistake,” despite nonpartisan studies concluding that the trade zone has had a mild, positive effect on the U.S. economy.

Does that mean his rhetoric was overheated and amplified? “Politicians are always guilty of that, and I don’t exempt myself,” he answered.

But I thought that he was not just another politician?  If we want just another politician, can we get one with some executive experience, military experience, and/or a legislative track record that exceeds what can be counted on the thumbs of one hand?

Obama is all over the place and does so depending on who he is speaking with…just like…Bill Clinton.  First he wants meetings with Mahmoud Ahmadinejad (among others) without preconditions, then he only wants them if they agree to stop sponsoring terrorism and funding militias in Iraq, which sounds a lot like a “precondition” to everyone but Barack Obama.  He wants to pull all the troops out of Iraq, but then tells the Iraqi foreign minister that he will be the second coming of John McCain.  He tells AIPAC that he wants an undivided Jerusalem as the capital of Israel, and then tells the Palestinians that he wants to divvy it up if that’s what they want.

“I’m voting Republican” YouTube post

A new video on YouTube is taking the Internet by storm. Entitled “I’m Voting Republican,” the satirical clip depicts actors playing conservative Americans of all shapes and sizes explaining why they would vote for the GOP.  I am not even going to link to it because it is so odd and the implications are reminiscent of Howard Dean’s comments that Republicans want children to go to bed hungry in “counter-distinction” to Democrats.

“Arnold Jones” says he’s voting Republican because “all other countries are inferior to us” — and his wife, “Trudy Jones,” adds, “and we should start as many wars as we need to keep it that way.” A soldier in Iraq states that he’s voting Republican “so I can stay in Iraq” — and a young boy, labeled “future draftee,” points a fake gun at the camera and smiles while saying “so I can go to Iran!”

A black couple says they’re voting Republican because they “like a conservative majority on the Supreme Court,” with the wife noting, “we really like knowing that even if we’re separate, we’ll still be called equal.”

This insulting nonsense is precisely what liberals think of conservatives: We’re all warmongers, racists, environmental rapists and secret emissaries of big corporations. We’re going to reinstitute the draft, start a war with Canada and then relocate African-Americans to Quebec.

I could counter this with a mockery of Democrat principles but it would be foolish.  One thing that this does point out to me, however, is that Democrats have such a command on marketing, distribution, and technology right now that they are killing the Republican image.  The GOP is so far behind that it is painful.  Why can they not catch up and why are they avoiding this.  YAF, Hot Air, and others are trying and doing a great job, but until Republicans catch up on the internet.  It is too bad that Ron Paul cannot jump on board and help us out a bit as his people seemed to do a good job.

Al Gore is a fraud!!! Arghhhh!

In the year since Al Gore took steps to make his home more energy-efficient, the former Vice President’s home energy use surged more than 10%, according to the Tennessee Center for Policy Research…

In the past year, Gore’s home burned through 213,210 kilowatt-hours (kWh) of electricity, enough to power 232 average American households for a month…

After the Tennessee Center for Policy Research exposed Gore’s massive home energy use [in February 2007], the former Vice President scurried to make his home more energy-efficient. Despite adding solar panels, installing a geothermal system, replacing existing light bulbs with more efficient models, and overhauling the home’s windows and ductwork, Gore now consumes more electricity than before the “green” overhaul.

Since taking steps to make his home more environmentally-friendly last June, Gore devours an average of 17,768 kWh per month – 1,638 kWh more energy per month than before the renovations – at a cost of $16,533. By comparison, the average American household consumes 11,040 kWh in an entire year, according to the Energy Information Administration.

As everyone knows we’re all going to do from global warming.  What you might not know is that in the process, you can do something for an unfortunate soul who could really use your help. Namely, Al Gore!

Al is the chairman of Generation Investment Management, a company that… er… I’ll let them tell it:

Generation has built a global research platform to integrate sustainability research into fundamental equity analysis. We focus on the economic, environmental, social, and governance risks and opportunities that can materially affect a company’s ability to sustain profitability and deliver returns. Our research plays an important role in forming our views on the quality of the business, the quality of management, and valuation.

I cannot stand this man.  Now that he has endorsed Obama with such gusto, my mind has been made absolutely clear that the Democrats have no answers.

Democrat voters favor nationalizing oil companies???

   I did not think that this was even possible to think this way in America.  What is going on:

A Rasmussen Reports national telephone survey found that 29% of voters favor nationalizing the oil industry. Just 47% are opposed and 24% are not sure.

The survey found that a plurality of Democrats (37%) believe the oil industry should be nationalized. Just 32% of voters in Barack Obama’s party disagree with that approach. Republicans oppose nationalizing the oil industry by a 66% to 16% margin. Unaffiliated voters are opposed by a 47% to 33% margin…

Data released yesterday showed that Americans believe developing new energy sources is the best long-term solution to the nation’s energy problem. Forty-seven percent (47%) said private companies were more likely to solve the nation’s energy problem than government research programs. But, at the same time, only 52% said companies should be allowed to keep the profits from the discovery of any alternative fuel sources.

How gas stations price their product

Gasoline and Diesel are priced by rack though out the country.  I suggest googling “Gasoline Rack Prices” for more information. Companies such as OPIS make a business out of monitoring and reporting wholesale rack prices at 200+ racks across the country. For a price any one can access this information including the local gas station owner.

 

Refining/Transportation companies price the racks in an array by location based on their cost to supply. Their power in the market place (perception of quality XOM vs. Sinclair), the retailer relationship with the supplier (i.e. are they carrying a branded flag and what volumes are they allowed to pull), etc.  The pricing is dynamic to avoid runs on inventory by retailers who see a price discontinuity, etc.

What happens at the retail level after the fuel is purchased at the bulk wholesale rack is usually driven by local issues and may have less transparency. However fast is the local gas station turning over inventory, where do they make their money (Beer, Twinkies, car wash, etc), are they branded, location, etc.

Government and charity

“The government of the United States is a definite government, confined to specified objects. It is not like the state government, whose powers are more general. Charity is no part of the legislative duty of the government”

 - James Madison

How the oil companies are spending their money

Over the last several years, the major oil companies have been driven away from investing money in future exploration and production. The so-called Supermajors, Exxon, BP, Shell, Chevron, Conoco, and Total have paid more in taxes than they have invested in the oil business. For the three year period, 2005 to 2007 these companies have paid $292 billion in taxes and invested $265 billion in capital projects. Stunningly, Exxon has spent nearly twice as much buying back it’s own stock ($78 billion) as it has on capital projects ($44 billion).

Exxon Mobil’s three year record of capital spending, stock buybacks and tax payments are indicative of serious secular and structural changes in the provision of energy.  Exxon Mobil is buying back stock because they can’t find enough energy investments to deploy their excess cashflow. Domestic drilling is severely constrained and international opportunities are scarce. If the business was so great they would use more money to invest in exploration.

 

Tax payer friendliness

After much patience, we finally have a reason to be excited about a John McCain policy.

He gave a very strong speech to the National Small Business Summit in Washington, D.C. on Tuesday, June 10th.  McCain pledged to keep taxes low for families and employers, and charged Obama — who gave his economic speech on Monday — with proposing the single-biggest tax hike in the entire post-WWII period. 

McCain said he will maintain the low income and investment tax rates put in place by President Bush. He singled out the need to keep the capital-gains tax rate at a low 15 percent, so that businesses will have the investment necessary to expand jobs, productivity, and real wages.  Completely unlike Obama, McCain is saying you can’t have capitalism without capital. And he recognizes that investors must have high after-tax returns in order to take risks and fuel entrepreneurial activity.

McCain repeated his plan to reduce the corporate tax rate to 25 percent from 35 percent. This could be his single-most-important tax reform. Not only will it enhance America’s global competitiveness, since we have the second highest corporate tax among large countries. But a number of studies show that roughly 70 percent of the benefits from a lower corporate tax will flow to the workforce in the form of higher real wages and more jobs.

McCain also pledged to keep the estate tax low to reward family businesses. Overall, he would seek a flatter and simpler tax system, probably modeled on Rep. Paul Ryan’s idea of two rates of 25 and 15 percent. McCain also discussed several middle-class tax cuts, such as doubling the child tax exemption and phasing out the alternative minimum tax. For businesses, McCain added a first-year cash-expensing provision for the write-off of new equipment and technology.

McCain coupled all this with a pledge to veto earmarks and pork-barrel spending. He held out as an example the outrageous $300 billion farm bill that drew Obama’s vote. McCain would go after corporate welfare and freeze discretionary spending outside of the military. And he made an especially strong case for the free-trade policies that have been so important to U.S. economic growth.

The McCain-Obama contrast couldn’t be more stark. Obama wants to use the tax system to redistribute income and wealth, not to grow the economy. He constantly talks about rewarding work over wealth. This is pure class warfare.

Obama doesn’t seem to understand that our nation was founded on the principle of equality of opportunity, and that private enterprise, not government, is the main economic driver. Obama intensely dislikes businesses. He would repeal all the Bush tax cuts and raise the corporate tax.

Obama talks about the need for bottom-up economic growth. But this is a canard. He’s pure top-down when it comes to big-spending government programs.

Obama singled out the ownership society, calling it a “worn dogma.” In fact he misjudges modern America, which is dominated today by 100 million investors, 25 million small-business owners, nearly 70 million homeowners, and roughly 140 million people who go to work everyday in the corporate world.

Earlier in the campaign, Obama became the candidate of 1970’s scarcity and limits when he asserted that “we can’t drive our SUVs and eat as much as we want and keep our homes on, you know, 72 degrees Fahrenheit at all times, and then just expect that every other country is going to say okay.”

Ironically, it’s Sen. McCain who is saying “Yes we can.” We can grow. We can prosper. We can be confident about the future. He’s saying that with the right economic policies, America’s outlook will know no bounds. 

Obama the windfall profit tax fairy

Barack Obama has been toying with the idea of imposing a tax on windfall profits on US oil companies, and it will be a part of his presidential platform (http://www.reuters.com/article/topNews/idUSWAT00963020080609?feedType=RSS&feedName=topNews&rpc=22&sp=true) Take a look at this latest statement he made in Raleigh, North Carolina.  He said, “I’ll make oil companies like Exxon pay a tax on their windfall profits, and we’ll use the money to help families pay for their skyrocketing energy costs and other bills.”  Gee, that sounds like a wealth distribution plan if I’ve ever heard one.  Rob from the rich to give to the “poor.” 

This term “windfall profits” has become another buzzword for liberals, and particularly the Barack Obama campaign.  A majority of Americans probably couldn’t tell you the first thing about windfall profits … but the word inflicts these feelings of evil and wealth envy.  Therefore, the Obama campaign will continue to use this fancy term to get you all riled up.  Politicians are good at that.

Once again we run up against the economic ignorance of the American people as they give in to this nonesensical rhetoric.  Wrong!

Hopefully most Americans have enough economic smarts to know that the profits from these oil companies belong to the shareholders.  Problem is, these people probably think that the shares in these oil companies are fat-cat insiders just reaping millions a year from their investments.

 

Throughout the oil and natural gas industries only about 1.5% of the stock is owned by company executives.  Now this statistic doesn’t come from the oil companies themselves, the numbers – and the numbers that follow – come from Bill Clinton’s undersecretary of commerce for economic affairs; one Robert J. Shapiro (http://www.energytomorrow.org/media_center/Shapiro_Pham_Study.pdf).

 

Here’s what Shapiro has to say about the ownership of the other 98.5% of oil company shares:  “The data show that ownership of industry shares is broadly middle class, with the majority of industry shares held by institutional investors, often on behalf of millions of Americans through mutual funds, pension funds and individual retirement accounts.”

Again … from the Shapiro study:

• Almost 43 percent of oil and natural gas company shares are owned by mutual funds and asset management companies that have mutual funds. Mutual funds manage accounts for 55 million U.S. households with a median income of $68,700.
• Twenty seven percent of shares are owned by other institutional investors like pension funds. In 2004, more than 2,600 pension funds run by federal, state and local governments held almost $64 billion in shares of U.S. oil and natural gas companies. These funds represent the major retirement security for the nation’s current and retired soldiers, teachers, and police and fire personnel at every level of government.
• Fourteen percent of shares are held in IRA and other personal retirement accounts. Forty five million U.S. households have IRA and other personal retirement accounts, with an average account value of just over $22,000.

 Someone once said that it is too bad that stupidity is not painful.  Well, in this case, it is painful how stupid people must be to think that a windfall profits tax is going to make energy and gas more affordable.

It is too bad that Obama is just another politician despite the nonsense that he spews.