Last week, I was at US Bank; a CD had matured. I asked the banker, does US Bank have money to lend? Could I get a loan if I needed one? He said, Yes, it was no problem. (I have a good credit score.) 

A local car dealer last week said they had money for financing too.

So we see, not every bank is short on available cash. And now this: Wells Fargo acquiring Wachovia for $15.1 billion! (My emphasis)

 In an abrupt change, Wachovia said Friday it agreed to be acquired by San Francisco-based Wells Fargo & Co. in a $15.1 billion all-stock deal that trumps Citigroup's plan to acquire Wachovia's banking operations and avoids government assistance.

The Citigroup deal would have been done with the help of the Federal Deposit Insurance Corp., but the Wells Fargo deal for Wachovia will be done without it. Shares of Wachovia and Wells rose in morning trading, while Citigroup shares fell.

Today, all eyes are on the House, seeing if the bailout bill passes there. I am hoping it doesn't since it contains too much pork and not enough reform. Loads of Pork, Little Accountability in Senate Bailout Bill: Will the House Balk?

 

The House rejected the original bill on Monday but the revised bill contains a lot of "sweeteners" designed to garner enough votes, including $100 billion in tax relief, a widening of the FDIC insurance cap to $250,000 and aid to rural schools.

But the Senate bill is also laden with pork, including:

• $223M for Alaskan fisherman
• $192M for rum producers in Puerto Rico and the Virgin Islands
• $128M for auto racing
• $33M for companies operating in American Samoa
• $10M for film & TV production
• $6M for producers of wooden arrows

In the meantime, the private market is working, buying up bargains and expanding their market share. 

UPDATE: New development. Wells and Citi are fighting over who gets to buy Wachovia! Wells Fargo, Citigroup in tug of war over Wachovia 

Please, comment content should relate to the subject of the post. Although I try to respond to many, do not interpret my lack of a response as agreement.

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I heard both Congressmen Paul Ryan and Jim Sensenbrenner interviewed on Jay Weber's radio show this morning. (Hour 4 Part 2). Since I trust the opinion of both of these men, I was curious as to why Ryan voted YES and Sensenbrenner NO on the latest bailout bill. 

First Congressman Ryan, who does have a degree in economics. The following are some notes I took from the interview--they are not direct quotes. Listen to the podcast if you can.

Ryan said the bill yesterday was the Paulson plan with quite a bit of tweaks.

The original Paulson bill was 3 pages: Give me a blank checkbook with $700billion.

We wrote a [Republican] alternative. Ours said, Let's make the firms buy insurance.

We rewrote the bill, added stock options--warrants to taxpayers, so the taxpayer is first in line to get money back (if there are profits--that means ACORN would not be getting funding as the orig. Paulson bill stated.) Executives won't get a Golden Parachute.

This bill was $350 billion: $250b immediately and $100b later. An additional $350b would need to be voted on in the future.  

Over the weekend, credit markets went crazy. The problem is not just on Wall Street. Credit markets are shutting down. [That means cash flow for payrolls is unavailable.] There is a fear of recession.

"I'm now sincerely worried this could lead to recession."

Jay Weber: Can we move slowly or do we need to move quickly?

Ryan: Tax money goes out the door either way, this way (bailout) or from FDIC (if banks fail.) Paulson mishandled this so badly.  We added 107 pages to his bill. 

I have never seen things like this [credit freezing up]--ever. Businesses won't be able to cash flow payrolls.

Weber: There is a deep distrust of Congress.

Ryan: 2,300 calls [to my office] almost all against the bailout. [That is changing a little now.] We have to corral Wall Street so it doesn't spill to Main Street.

Weber: Why aren't Republicans hammering this?

Ryan: I am. Since 2002 I have voted against Freddie and Fannie every time.

I think Paul Ryan voted for this measure because he is genuinely worried about our economy shutting down. He knows that if businesses cannot get credit to meet their payrolls, that means workers do not get paid. With many Americans just a paycheck away from being broke, we cannot afford to let that happen. Businesses also use credit to purchase supplies and equipment for future production.

Then it was Congressman Jim Sensenbrenner's turn:

Paulson [Barney Frank] plan fatally flawed from the beginning. That money all came from taxpayers.

The word was, $700billion would not be enough.

America can't afford this. We are wealthy, but there is a limit. 

All of this is inflationary. Interest rates will shoot up. [Remember] 20% prime rates during Carter? 

We should go back to the regular order [of crafting legislation] with committee meetings, rather than Paulson saying we have to do this.

Weber: We're racing against the clock.

Sensenbrenner: When markets opened [today] they were up 200, so hopefully the markets have calmed down.

Paulson is pushing for now. It bailed out the people who caused the problem.

I'm prepared to go back when Pelosi calls us back.

This is a case of Congress serving the people. 

Weber: What angers people is Frank and Dodd in charge of the fix. Is there any mechanism to say when you failed the people, get off the committee!

Sensenbrenner: The Community Reinvestment Act was a significant factor [to what is going on.] 

The process worked yesterday. The speeches like from Pelosi need to stop. She also knew there were not the votes to pass. Why did she bring the bill to the floor? [To fix blame on the Republicans]

Weber: Would you change the Community Reinvestment Act?

Sensenbrenner: Repeal of that law should be in the new package now.

The Security and Exchange Commission dropped the ball--enforcement was not vigorous. 

The Justice Department should investigate if any fraud was committed. [Imprisonment would serve as a deterrent.]

So there you have the Yea and the Nay. Where is Solomon when you need him? 

Conservatives would hope the next version of the bailout bill would be better for taxpayers, that it keeps money from ACORN and repeals the Community Reinvestment Act. With this crew I don't have much hope.

My fear is that the next version will included ACORN funding again or worse. The Democrats will vote for it, and President Bush, who is really over a barrel here, will have to sign it.

Calls from Americans running 500 against, to 1 in favor, of the bailout might be the only thing that saving us from an UGLY pig of a bill.

Post Script: Along the lines of Sensenbrenner's request that they craft this bill carefully, 165 Economists rip bailout plan:

The economists say they are well aware of the current financial situation and agree there's a need for bold action but ask Congress "not to rush."

They urge lawmakers to hold appropriate hearings and "to carefully consider the right course of action." 

Right now the market is up 307 points from yesterday's close. You can check anytime on USAToday. (If you leave it open, it automatically refreshes.) 

Please, comment content should relate to the subject of the post. Although I try to respond to many, do not interpret my lack of a response as agreement.

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Remember Rep. Nancy Pelosi's Remarks Upon Becoming Speaker of the House two years ago? (Emphasis mine) 

I accept this gavel in the spirit of partnership, not partisanship, and I look forward to working...

I look forward to working with you, Mr. Boehner, and the Republicans in the Congress, for the good of the American people.

... and the American people told us they expected us to work together for fiscal responsibility, with the highest ethical standard and with civility and bipartisanship.

... After years of historic deficits, this 110th Congress will commit itself to a higher standard: Pay as you go; no new deficit spending.

... Our new America will provide unlimited opportunity for future generations, not burden them with mountains of debt.

... My colleagues elected me to be speaker of the House. The entire House. Respectful of division of our founders, the expectations of our people and the great challenges that we face, we have an obligation to reach beyond partisanship to work for all America.

... Let us stand together to move our country forward, seeking common ground for the common good.

Did her performance yesterday live up to her promise? Blaming Bush for all of this? (There is plenty of blame to go around. If our economy is in such danger, and I think it could be, is this the time for finger pointing or "seeking common ground for the common good.")

Pelosi let 16 Democrat Congressmen in tight races off the hook--they could vote NO. Obama campaign co-chair Jessie Jackson Jr., Democrat from Illinois, voted NO.

If Speaker Nancy Pelosi was so sure this bill needed to pass, why did she poison the deal with her rant and not insist her own party support it? Was she hoping it would fail so they could get the ACORN funding back in? Who knows.

I think it all comes down to a matter of trust. Do you trust this Congress to come up with an acceptable solution?  

About this time 2 years ago, before the majority shifted to the Democrats, the Congress' approval rating was 25%. Last year it was 11%. In July it was 9%: "The overall national approval rating is at 9 percent. The first time in history that the rating has fallen to a single digit. ...So you see, history can be made. All it took was some hard work and bipartisanship."

Rep. Jim Sensenbrenner said, "Now is not the time to fix the blame, it is time to fix the problem."  I pray they will be able to do just that before credit totally freezes up and businesses can't make payroll.

Please, comment content should relate to the subject of the post. Although I try to respond to many, do not interpret my lack of a response as agreement.

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There is lots of chatter today about how Sen. John McCain squashed the soon-to-pass bail out plan. (So much for the Dems. calling him Bush 3)**

Hmm, the Democrats are in the majority, why don't they just pass it on their own?*

Because they don't have the votes in their own party.

Truth is, the bail out bill the media said was near passing, was NOT anywhere near approval. House Republicans were not consulted on the Paulson bail out bill.

In addition, Senator Lindsey Graham was on Fox last night and explained that part of the bail out money would go to ACORN! From Hot Air:

House Republicans refused to support the Henry Paulson/Chris Dodd compromise bailout plan yesterday afternoon, even after the New York Times reported that Treasury Secretary Henry Paulson got down on one knee to beg Nancy Pelosi to compromise.  One of the sticking points, as Senator Lindsey Graham explained later, wasn’t a lack of begging but a poison pill that would push 20% of all profits from the bailout into the Housing Trust Fund — a boondoggle that Democrats in Congress has used to fund political-action groups like ACORN and the National Council of La Raza

Would you want that to pass? 

Most Americans are not in favor of a bail out. Most Republicans do not favor a bail out. Newt Gingrich has not favored a bail out to save our economy. (Emphasis mine) 

Newt Gingrich:  Well, the last time we were promised they were going to save us, it was $300 billion; it was a housing bill.  And what liberal Democrats in Congress did, for example, was add $500 million a year for a left-wing activist group called Acorn.  Now, I can’t imagine why we’d want the taxpayer to give $500 million a year to a left-wing activist group, but it’s in the bill which the Bush administration signed and that was only back in July and that was going to solve everything.  That was $300 billion ago.

Now we have a brand-new, liberal Democrats, many of whom, for example, Chris Dodd, was the largest single recipient of money from Fannie Mae and Freddie Mac and he is the chairman of the Banking Committee.  So the guy who got the most money is now going to write a bill to give taxpayers money to the people who gave him money.  Somehow, I am not reassured.

The House GOP (Republicans) have presented a plan of their own. It is more of a Work Out than Bail Out. Gingrich also favors a Work Out that would include borrowing at 2% not bailing.

I may just be a Home Economist, but I know we need to do something. If the average American was in better financial shape, not carrying around $8,000 debt on their credit card and not one paycheck away from financial disaster, I might be inclined to just tough it out.  

Gingrich recommended that Republican leaders like Boehner, DeMint, Shelby, and McCain meet to put together a proposal Americans will support. Then the people will put the pressure on the Democrats in Congress to pass it, much like public pressured Congress to drill for domestic oil. But since Harry Reid just stuck a ban on domestic oil shale drilling onto an appropriations bill, while this crisis is going on, so much for listening to the will of the people and doing what this country needs.

Heaven help us. I mean that literally.

Read more: Market Rescue Dos and Don'ts  from the Heritage Foundation

*Observation courtesy of Nick Reed interjecting on the Jay Weber show this morning. 

**Observation by a caller on Rush's show today. (The car radio does make running errands more tolerable!) 

Please, comment content should relate to the subject of the post. Although I try to respond to many, do not interpret my lack of a response as agreement.

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Yup, it is true. Former President Bill Clinton appeared on Good Morning America this morning and defended John McCain. (Politics makes strange bedfellows!)

ABC News' Nitya Venkataraman Reports: Former President Bill Clinton defended Sen. John McCain's request to delay the first presidential debate, saying McCain did it in "good faith" and pushed organizers to reserve time for economy talk during the debate if the Friday plans move forward.

... 

"We know he didn't do it because he's afraid because Sen. McCain wanted more debates," Clinton said, adding that he was "encouraged" by the joint statement from McCain and Sen. Barack Obama.

Clinton also commented on the Democrat's accusation that this problem came out of nowhere--we had nothing to do with this. He admitted some responsibility in this mess lies with the Democrats in Congress. (About half way through the clip)

Well... ...the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was President to put in some standards and tighten up a little with Fannie Mae and Freddie Mac. [He also blamed the Up Tick rule.]

I really hope the Congress acts in good faith and not in their typical political way, as in the NO Drill Bill. When Sen. Obama originally stated that he would not come, that "If you need me, call me." if he was needed, I wondered how that would have gone over with the Democrats if Pres. Bush had done that with Hurricane Katrina.

GOPUSA's piece, Bailing out the Bailout, talks about Sen. Reid's flip flop on McCain's presence and what some conservatives hope McCain can do, 

...Until McCain's announcement, Senate Majority Leader Harry Reid seemed inclined to support the $700 billion bailout bill -- provided Democrats could lard it with their own goodies -- but only if McCain (and other Republicans) would support the package and provide the Dems with political cover.

"I got some good news in the last hour or so ... it appears that Sen. McCain is going to come out for this," Reid announced Tuesday evening.

...

Reid's office promptly released a statement that said, "We need leadership; not a campaign photo-op." So the bailout is worth spending $700 billion of other people's money -- but not worth McCain flying to Washington to broker a doable deal? Get the feeling Reid is completely out of touch?

Now, what if McCain could reduce the size of the bailout? (That is a tall order, but hope springs eternal with me.)

If, however, McCain can broker a more fiscally responsible plan -- read one with a price tag about half of the original's size or less, and with a cap on executive pay -- he just might be able to broker a deal that can pass muster.

McCain is taking a huge chance here. Even just going to Washington to vote on this measure is a risk. One has to wonder if Obama hoped he could duck the whole thing by not going to the Senate to vote at all--a variation on voting, "Present."

Please, comment content should relate to the subject of the post. Although I try to respond to many, do not interpret my lack of a response as agreement.

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Have you noticed that the mood of the country has changed regarding energy?

Last year, THE solution was all about growing our own energy by using ethanol. The emphasis was on reducing our carbon footprint and dependence on foreign oil, regardless of the cost.

But rising food prices and the fact that ethanol was a boondoggle (using as much energy as it supplied) caused ethanol's reign to slip from political popularity.

Then came Newt with his Drill Here.Drill Now.Pay Less. campaign. While I am surprised that he never did get those 3 million petition signers, he certainly started the conversation that we must start producing more oil domestically.

It was a conversation the President and House Republicans were willing to listen to. Nancy Pelosi and the House Democrats, however, were not. In fact, she shut down the House for 5 weeks!

During that 5 weeks off, around 130 House Republicans kept the heat on the discussion in the House. See YouTube

Also during the summer, the polls started showing that 67% of Americans favored domestic drilling.

John McCain responded to that fact by embracing offshore drilling. Certainly his picking Palin indicates he is looking at domestic oil and increasing natural gas. The Republican ticket has an "All of the above" approach. (Oil, clean coal, natural gas, tidal, hydro, hydrogen, geo-thermal, nuclear, wind, solar, etc.)

Barack Obama wouldn't go that far, but did promote getting off foreign oil dependence by increasing clean coal, natural gas, and safe nuclear as additions to the usual wind, solar, etc.

But while all this new domestic energy posturing was going on, Pelosi and the House Democrats were not available until this week. On Monday:

"House Majority Leader Steny Hoyer (D-Md.) said Monday morning that the newest Democratic energy bill will be brought to the floor under normal rules and will be subject to a vote on a Republican alternative that is likely to call for even more drilling than Democrats are prepared to swallow.

So finally, she and the House Democrats are willing to allow a vote on drilling!

"Pelosi miscalculated in her heavy-handed tactics before the recess.  She attempted to push through her own plan under suspension of the rules, a tactic she decried in 2006, which kept Republicans from offering an alternative.  When it failed, she adjourned Congress, hoping to put off the debate until after the conventions … and her book tour.

"Instead of regrouping, the Democrats found themselves routed by an angry electorate and motivated Republicans.  The House Oil Party kept the issue in the media eye, at least to an extent, but high gas prices kept it on the minds of voters while Democrats took their summer vacation.  It was as poor a political calculation seen in recent years, and the sudden shift in generic Congressional ballots and in party identification has been the result.

"Pelosi and Harry Reid may have finally figured out that they could lose this election on energy policy.  Will this be enough to stanch the bleeding? (My emphasis)

This vote would have never happened without public pressure. We tend to forget that fact. But don't jump for joy just yet.

The next hurdle will be, what kind of energy bill gets passed? Will it be a real energy bill that truly increases drilling opportunities and new energy sources? Or will it be just all show and no go? as a token attempt by Democrat Congressmen and Senators up for reelection to appear sympathetic to energy prices?

But House Republicans called the Democrats' proposals "gimmicks," and instead have insisted on a stand-alone vote on oil drilling.

"Speaker Pelosi's so-called 'energy' bill will do nothing to help our energy crisis," said Rep. Michele Bachmann, Minnesota Republican. "It will multiply red tape and make it almost impossible to lower already skyrocketing oil costs." (My emphasis)

Stay tuned! 

Please, comment content should relate to the subject of the post.

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Brookfield7, Fairly Conservative, Betterbrookfield, Mark Levin,  Vicki Mckenna

Last night I heard Senator Inhofe (R-Oklahoma) on the Mark Levin Show.  They were discussing S. 2191, the Senate "Lieberman/Warner Global Warming Bill and the disastrous effect this would have not on just the country as a whole, but the individual." (My emphasis throughout post.)

Wall Street Journal referred to Cap-and-Trade as Cap and Spend

As the Senate opens debate on its mammoth carbon regulation program this week, the phrase of the hour is "cap and trade." This sounds innocuous enough. But anyone who looks at the legislative details will quickly see that a better description is cap and spend. This is easily the largest income redistribution scheme since the income tax.

The Washington Post said, Just Call It "Cap-and-Tax" 

"...One of the bad ways [to control greenhouse gas] is cap-and-trade. Unfortunately, it's the darling of environmental groups and their political allies.

The chief political virtue of cap-and-trade -- a complex scheme to reduce greenhouse gases -- is its complexity. This allows its environmental supporters to shape public perceptions in essentially deceptive ways. Cap-and-trade would act as a tax, but it's not described as a tax. It would regulate economic activity, but it's promoted as a "free market" mechanism. Finally, it would trigger a tidal wave of influence-peddling, as lobbyists scrambled to exploit the system for different industries and localities. This would undermine whatever abstract advantages the system has.

...Call this "environmental pork," and it would just be a start. The program's potential to confer subsidies and preferential treatment would stimulate a lobbying frenzy. Think of today's farm programs -- and multiply by 10.

After listening to Senator Inhofe, I think we could also refer to it as Cap-and-Raid! If it passes, it will raid every worker in America's wallet!

Senator Inhofe said, Senator Barbara Boxer insists this is not a tax bill. But if you have looked into the bill itself and at the linked articles, it is difficult to understand how this could not be considered a tax bill.

Inhofe then quickly listed some points to ponder. He mentioned the Wall Street Journal referring to it as the most extensive reorganization since the 1930s. He called it worse than the Kyoto Treaty for the economy. Cap-and-Trade will need 45 more Big Government Bureaucracies to enforce the standards.

Using Boxer's figures, Inhofe pointed out that Cap-and-Trade would collect $6.7 Trillion dollars from industry (those costs will be passed onto us!). The maximum rebate to customers is $2.5 Trillion dollars. Do the math: That means $4.2 Trillion goes where?

That sounds like a tax to me!

He went on to remind us that the Democrats have killed every domestic drilling bill. The US relies on coal for 53% of all of its electricity production. Cap-and-Trade will tax coal fired electricity production. Consider that China "cranks out a new coal electric plant" every 3 days (?). (I think he said 3 days, which fits with this - certainly between India and China it would be true.)

Manufacturing jobs will go where there is (cheap) energy/power, Inhofe said. This is also what Congressman Sensenbrenner talked about at his Town Hall Meeting when he called Cap-and-Trade "Catastrophic for Wisconsin". I would add that manufacturing jobs will also go where environmental regulations are more lax.

Senator Inhofe suggested people take a look at Liberman-Warner Opposition Resource Center; Impacts of Costly Climate Bill Exposed  It is chock full of quotes, links and articles.

The Senate is debating this bill this week. While some say the bill will not pass, as you know, once the foot is in the door, the issue will not go away.  Considering all 3 Presidential candidates support the concept of Global Warming, I would just say, the bill probably won't pass...yet.

Our Senators' response to my emails: Not much hope of a NO vote here--unless they feel the heat from constituents.

This is important! Please contact them both: Senator Kohl (Phone: (414) 297-4451, (202) 224-5653) and Senator  Feingold (Office of Senator Russ Feingold | 202/224-5323) and let them know what you think about this bill.

More reading:

George Will's Cap-And-Trade: A Devious Tax Plan

Good chart of key players and terms explained at end: Senate taking up key climate-change bill 

The Heritage Foundation's Morning Bell: Carbon Capping in Bizarro World 

Links:

If you've ever planned a road trip, mapping your route ahead of time makes a big difference: which way will allow you to travel with the least amount of traffic, major city rush hours, or road construction? Often a little planning ahead can save hours being stuck in a traffic jam. Certainly there is no sense to chart a course leading to a bridge closed for repairs. No reasonable person would say, the only bridge ahead is closed, but we'll make such good time before the bridge, we'll pick that route anyway.

Yet this is what our government is doing by ignoring the coming Social Security/Medicare crisis. Politicians don't want to deal with that reality. They know it is going bankrupt, but their attitude is, we'll cross that bridge when we come to it. "There is a growing, bipartisan consensus about the greatest threat to our nation's long-term economic prosperity: the explosion of entitlement spending." (Ryan)

Last week, Congressman Paul Ryan proposed his "Roadmap for America"--a very practical and pretty painless way to shore up Social Security, Medicare, and the tax code. Ryan is planning the future path for America that allows us to make good time and still cross that bridge in the future, and he does it without massive tax increases. He said in an interview:

I am raising the same rate of tax revenue as today, but I am preventing them from doubling in the future. I am proposing to tax 18.5 cents out of every dollar to run the government as opposed to 40 cents out of every dollar. Spend the money more intelligently. The 1st $39,000 (after deductions) for family of 4 is tax free. After that, the first $100,000 is taxed at 10%.

Ryan also bravely addresses Health Insurance and Medicaid in addition to Social Security, Medicare, and Tax Reform. Simply ignoring these pending problems will not make them go away. Ignoring these entitlements just increases the problems and costs. Hopefully Ryan's route will Not be A Road Less Traveled:

There is no threat to our nation’s fiscal health greater than the coming deficits from unrestrained growth in Social Security, Medicare, and Medicaid. Already Social Security and Medicare consume 7.5% of our GDP. Unless changes are made that figure will jump to 13% by 2030.

Bravely stepping in to offer a policy solution, Rep. Paul Ryan (R-WI) has introduced a plan he calls “A Roadmap for America’s Future.” 

Read through Congressman Paul Ryan's plan in the Wall Street Journal: How to Tackle the Entitlement Crisis for Health Insurance, Medicaid and Medicare, Social Security, and Tax Reform.

We cannot afford to ignore this any longer. Our children are the ones who will pay for our failure to deal with these growing problems. Ryan writes:

According to the Congressional Budget Office, Social Security, Medicare, Medicaid and the rest of government will consume nearly 40% of the economy by the time my [Paul's] three young children reach my age (38). This will require more than doubling the average tax burden of the past 40 years just to keep the government afloat. Continuing down this path will eventually strangle our economy.

Once we come to that "bridge", there is no easy way to cross it. The time to deal with it is NOW! The question is: Do we have any politicians brave enough to do the right thing?

Congressman Paul Ryan is a member of the Congressional Budget Committee and the Ways and Means Committee.

Don't forget the Music Concert to Benefit Chinese Quake Victims, Saturday, May 31st, 10AM - 1PM, Brookfield Civic Plaza

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Question: Who is the number 1 oil producer? Number 2? Number 3?

Do we have the right to sue any of the top 3 for not producing more or setting prices? 

If you said yes, that would include suing the United States. We are the number 3 oil producer in the world*.

"Congress' latest answer to rising gasoline prices: Sue OPEC .(LA Times)"  -What about counter suit? What if OPEC sues the U.S. for not pumping all of the oil deposits in our own country? Isn't it ridiculous that we don't pump the oil off of our shores for environmental reasons, yet Mexico just to our south does?

What about an OPEC lash back? Do we really want to poke a stick in the eye of our major oil suppliers? (One of my nicknames is Cautious Kyle.) The President must think so too, "The White House warned that the measure could invite retaliatory action by the oil cartel, which supplies about 6 million barrels of crude to the United States every day."

Just imagine what our economy might look like if we were pumping from all of our own known deposits and kept our oil dollars home? Or on the darker side, just imagine what what our economy would look like if OPEC decides to sell elsewhere? From the L.A.Times:

Rep. Steve King (R-Iowa) scoffed at the measure, arguing it was "long on psychic compensation" but unlikely to bring down gas prices. He assailed Democrats for blocking efforts to increase domestic oil drilling, complaining that the bill "doesn't outlaw the congressional cartel that has blocked our energy production in this country."

"Even if this bill gets vetoed, which I believe it will, we're sending a message over to the OPEC countries that we want to litigate," King said, warning of possible reprisals.

OPEC could speed the flow of oil to the market, King said. "Or they might just decide, a little bit out of spite, to turn the spigot down a little bit to say, 'We'll show you.' "

Maybe we should sue Congress for blocking US drilling attempts? 

*Top 10 oil producers: Saudi Arabia, Russia, US (first 3 each produce almost 2X or more than the following), Iran, China, Mexico, Norway, Canada, Venezuela, United Arab Emirates.

Past Post: Can We Just Start Drilling Now? 

Don't forget the Music Concert to Benefit Chinese Quake Victims, Saturday, May 31st, 10AM - 1PM, Brookfield Civic Plaza

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Congressman Sensenbrenner brought up Senate bill S. 2191, the Lieberman/Warner "America's Climate Security Act of 2007" at his Town Hall meeting Sunday. He described it as a "disaster for Wisconsin."

Information on S. 2191 from Congressman Sensenbrenner's website:

“S. 2191 proposes a nationwide cap-and-trade program for the emissions of greenhouse gases, like carbon dioxide, an important component of the manufacturing industry.  By setting a limit and capping carbon dioxide emissions by businesses, the Lieberman/Warner bill would thrust a highly regulatory regime on our nation’s economy, making electricity more expensive for businesses and consumers.  In Wisconsin, which relies heavily on the use of coal for electricity, this bill would have a catastrophic effect as we would be especially hard hit.

“This point is underscored in a study commissioned by the National Association of Manufacturers to assess the potential impacts of S. 2191 on Wisconsin’s economy…and the results are scary.

The Congressman discussed that study at the meeting and on Charlie Sykes show. The predictions were "scary."

“According to the study, electricity rates in Wisconsin could increase by as much as 163% in 2030 - nearly tripling today’s costs - and gas prices could increase by as much as 176% in 2030, again, almost tripling today’s cost of natural gas.

Not only will we be paying more for utilities, a figure of a 145% increase in gasoline prices was also given on Charlie Sykes show Monday, April 28, Ready for $10 a gallon gas?

So not only do we get to pay for higher energy costs for our own use, but we will pay more for every item and service produced in Wisconsin too.  

Who would ever want to live in Wisconsin or locate their business here if that is the case?

The National Association of Manufacturers report estimated that by 2030, 74,000 jobs would leave Wisconsin and a whopping 4 million jobs would leave our nation, because businesses naturally seek the cheapest and easiest place to manufacture their products.

What exactly is a cap-and-trade and why does it have such a negative impact on Wisconsin? 

Cap-and-trade is another term for Carbon Credit (or indulgences). Congress or bureaucrats set a cap or maximum on greenhouse gases that can be emitted by a company--be it a corporation or a utility company. Companies that do not comply with the standard must then have to purchase carbon offsets from companies that do comply. It is like a type of stock market that deals in these special credits.

According to Congressman Sensenbrenner, since Wisconsin gets 2/3 of its electrical power from coal fired plants, but Illinois obtains 60% of its electric power from clean nuclear power plants that emit 0 CO2, we will have to purchase these carbon offsets from Illinois just to keep producing our needed electricity! Illinois in effect gets their energy costs subsidized by Wisconsin residents. Wisconsin ends up paying 176% more for our electricity. OUCH! (At present, only 20% of Wisconsin electric comes from nuclear plants.)

Think no one in their right mind would agree to a system like this? Think again. Europe has been doing this for nearly 3 years now. Europe's greenhouse gases continue to rise as do their electricity rates. It has done nothing to lower emissions according to a publication from Sensenbrenner's office. I believe Australia just signed on to a system of carbon credits too.

Since businesses will just relocate to third world countries to manufacture their goods, these carbon credits will do nothing to lower CO2 emissions worldwide. The pollution will just move to the far east.

The increase in costs due to cap-and-trade fees are estimated at $1,300 a year / household for Wisconsinites.

Please contact Senators Kohl (Phone: (414) 297-4451, (202) 224-5653) and Feingold (Office of Senator Russ Feingold | 202/224-5323) and let them know what you think about this bill. 

Representative Zipperer informed the Town Hall meeting atendees that the Wisconsin Assembly recently passed legislation that lifted the moratorium on nuclear power plants last session. The Senate however did not. He said they would try again next time. 

Contact your state representative and senator about the moratorium.

State Representative Leah Vukmir, Republican, 14th District
Rep.Vukmir@legis.wisconsin.gov  608-266-9180

Representative Rich Zipperer, Republican, 98th District
Rep.Zipperer@legis.wisconsin.gov  608-266-5120

Congressman Sensenbrenner's contact info:Email  Telephone: (262) 784-1111, (202) 225-5101  

Links: Upcoming events in Brookfield

4th Annual Weed Out, May 3rd, Mary Knoll Park