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Hillary Clinton Joins the Bull Moose Party?

Last week we had a spirited discussion about the Fairness Doctrine, and out of that discussion, a number of readers commented on how the current status quo in Washington results in little progress. The fierce partisanship between the Republicans and Democrats seems to be resulting in more grid-lock and greater vilification of each other, rather than the goal of finding common ground in the making of public policy.

I have been a disgruntled Independent since I was 18 and voted for Ronald Reagan many years ago. In fact, Ronnie was the only Democrat or Republican that I have ever voted for President. I am a strong believer in the need to create a strong third party within the US. The current two-party system creates an environment that is a quite a paradox. As the two party’s policies actually move closer together, the division and ranker in both the elected and the electorate are actually increasing. Strange days indeed, quite peculiar Mama.

I had high hopes for the Reform Party, however Ross Perot ultimately proved he was a bit crazy, and abandoned the party once it was not all about him. I would have liked to have seen him provide support even after he was no longer a candidate. All of the other third parties sit too far outside the common mainstream “silent majority” to really have a chance. Candidates like Ralph Nader, Pat Buchanan, Michael Anthony Peroutka, and Cynthia Ann McKinney have not really been able to draw much, if any, attention.

In order for a third party to gain a foothold it must have a nationally known political figure step up to the challenge. In 1912, that was Teddy Roosevelt, who had lost the Republican nomination, and created the Bull Moose Party. Later in 1980, John Anderson ran against Carter and Reagan. Then in 1992 and 1996 Ross Perot tried to mix it up with Clinton and Bush. Ultimately they all failed, and no true third-party ever lasted past their nominee.

So, that is where Hillary steps in… Ok, stop laughing. If Hillary split from the Democrat Party, and announced her run as an Independent, I would guarantee that she would easily win the coming election. If she selected a young, middle of the road conservative as the VP candidate, she would effective split the Republicans and Democrats, and ride to the White House on the 49.5% of the public who love her, and Bill.

Who would you vote for as a third party candidate? Would you support Hillary?

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VP Race - Who cares? 500EC says you do…

Has anyone really picked a President based on the VP candidate?  Or for that matter, even voted against a party due to the VP choice?  Maybe when Lyndon Johnson ran with John F Kennedy back in 1960.  SInce that time, the VP is really an after thought.  Heck, even Dan Qualye could not sink George the First’s run in 1988.

Who remembers Spiro Agnew?  Or maybe Edmund Muskie? Uh, Sargent Shriver, William Miller, Frank Knox?  Heck, most people probably don’t even know who Jack Kemp is.  Did Al Gore help Clinton win in 1992, I would vote no.  Did George H. W. Bush help Reagan, hmm, maybe…

So, leave me a comment with who you think the VP candidates will be.  The first person that posts a comment with BOTH Democratic and Republican choice will get 500EC.  I have the right to also award additional EC for particularly interesting choices; funny, inventive, etc.

My guess is:
Democrat - Indiana Sen. Evan Bayh
Republican - Florida Gov. Charlie Crist

Update 8/25/8
Biden is Obama’s choice, however we still do not know McCain’s pick.  Place your vote, the first person to pick Biden and the eventual winner will win the 500EC.

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Why the European Union also needs to be Energy Independent

In the US, we have been talking about our current energy crisis, and our need to become energy independent.  The general population certainly is becoming aware of this need, $4 a gallon gas helps to get people focused on an issue.  Hopefully our political leaders will start to put action behind their rhetoric. However, the US is not the only country that needs to be concerned about energy independence.   With the recent crisis in Georgia, it is clear that this conflict has a large impact on the energy situation in Europe.

As we discussed last week, Russia currently has a stranglehold on the EU’s energy supply.  The Russians now supply about 25 percent of the European Union’s crude oil needs and half of its natural gas.  If the European Union has not figured out the strategic importance of this fact, the Russians obviously have.  Just as OPEC held the West hostage in the 70’s, Russia now has the ability to wield the same control over Europe.  Their first step was invading Georgia and daring NATO to do anything about it.  So far, Europe has once again shown their leadership in the fine art of appeasement.   And the US, which is busy fighting multiple battles, does not have the stomach to get involved. 

There are three basic reasons why the US, EU, and others such as China, India, and Japan need to become energy independent.

1) Stop sending Trillions of dollars to non-democratic countries that are usually unstable dictators, or hostile regimes.  This money transfer is unhealthy to the global economy.  It allows a small group of people in these petro-kingdoms to hold their own people hostage.  Is it any surprise that almost no country who’s main export is oil is a free democracy that values human rights?

2) Our reliance on carbon based energy sources is a contributor to global warming.  In addition, the extraction of oil from areas such as the Middle East, Nigeria, and South America creates huge environmental issues.  These countries do not have strong environmental regulations like we have in the West.

3) New energy technology will drive our economy over the coming decades.  Instead of sending petro-dollars overseas, that money should be invested in our economy, and on new technology that will help make the world a safer and cleaner place to live.

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The Fairness Doctrine - Infringement of Free Speech?

According to a recent poll done by Rassumessen, nearly 47% of Americans seem to support some version of the Fairness Doctrine.  I am shocked that almost half the country feels that it is fine for the government to regulate Free Speech.  My guess is that if folks actually understood what was being proposed, we would see that number drop dramatically. 

For those too young to remember, The Fairness Doctrine was a policy of the U.S. Federal Communications Commission that required the holders of broadcast licenses both to present controversial issues of public importance and to do so in a manner that was honest, equitable, and balanced. The doctrine has since been withdrawn by the FCC, and certain aspects of the doctrine have been questioned by courts.

The new version would be specifically targeted at talk radio, and the likes of Rush Limbaugh, Sean Hannity, and Mark Levine.  The Democrats are unhappy that talk radio is dominated by Conservative shows, without a balanced number of Liberal shows.  Radio stations argue that they cannot generate ad revenue with Liberal shows, that they just are not popular with their audience.  Apparently, however, they are conformable with the Liberal TV news media (ABC, NBC, and CBS).   They are only suggesting that radio should be regulated, for now.

Having the government regulate the content and views of radio stations seems like a step backwards in terms of free speech.  If a station had a guest on talking about the importance of good child nutrition and the dangers of child obesity, would they than have to also have a guest that advocated McDonald’s?  Who makes the decision on what is “honest, equitable, and balanced”?  Nancy Pelosi or George Bush? 

Do you think the Fairness Doctrine an infringement of Free Speech?

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The Russian Bear is Awake - Hold onto your Wallet

Moscow, with its recent attack on its former Georgian republic has caused concern across the world.  Russia is feeling strong, and is showing that it is no longer going to sit idly by as their former client states forge stronger relationships with the EU and the West.  This new found strength has been gained by becoming one of the world’s largest energy producers. The Russians now supply about 25 percent of the European Union’s crude oil needs and half of its natural gas.  But now Black Sea oil tankers that normally would be filling up with Baku crude, are anchored 15 miles offshore the Georgian port of Batumi, waiting for a cessation of hostilities.

Russia has demonstrated that its military is a force to reckon with, that it can defeat a Western-trained force, and that the West and NATO will not act to intervene.  Like during the Cold War, the West has limited ability to blunt Russia’s military agression.  Both sides know that an armed conflict between NATO and Russia is never going to happen.

After the fall of Communism, both Washington and the EU invested heavily in Russian energy production.  The result has been a network of oil and natural gas pipelines, ports, and tankers that can feed a million barrels a day to the world market. Washington has helped to expand and link that network directly to Europe, where Russia is currently the dominant supplier.  The multi-billion-dollar Baku-Tbilisi-Ceyhan pipeline that runs across Georgia is run by an international consortium, including American oil-giants Chevron and Conoco-Phillips.

Now, US taxpayers are about to get a double whammy.  Two government agencies, the Export-Import Bank (Ex-Im) and the Overseas Private Investment Corporation (OPIC), have made large investments in the Baku-Tbilisi-Ceyhan pipeline, lending money to private companies involved in the construction of the pipeline. Ex-Im Bank gave $160 million in loans, and OPIC has provided $100 million in “political risk insurance”.  If the pipeline is damaged or destroyed, these companies will be forced to write off these loans, and US taxpayers will be left to pickup the pieces.  That is a potential quarter of a Billion dollar bill that may come due soon.

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Mission Accomplished - Bush Beats Bikini Babes

Mission Accomplished!
Mission Accomplished!

Misty May-Treanor finally got what she wanted.  After repeatedly asking, the President of the United States gleefully slapped the small of her tattooed back.  Partner Kerri Walsh watches closely, while Laura Bush toured Beijing’s famous Forbidden City.

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Please Make Sure You Inflate Your Tires This Weekend!

As presumed Presidential nominee Barrack Obama taught us this week, it is vitally important for everyone to inflate their tires this weekend, and on a regular basis as well.  In addition, if you can also schedule a tune-up, that would be swell.  As Obama pointed out, “There are things you can do individually, though, to save energy.  Making sure your tires are properly inflated – simple thing.  But we could save all the oil that they’re talking about getting off drilling – if everybody was just inflating their tires?  And getting regular tune-ups? You’d actually save just as much!”

Now I am not sure exactly what his definition is of “all the oil that they’re talking about getting off drilling”, but that sure sounds like a lot.   The Energy Information Administration estimates that we could extract approximately 10 billion barrels of oil from ANWR alone, about 600 million barrels a year.  This is equal to just less than 10% of our total oil use in the US on a yearly basis. 

The federal government estimates the nation’s outer continental shelf might hold 85.9 billion barrels of crude, including 10.13 billion barrels off California.    Let’s call that another 600 million barrels a year just to make our numbers easy, it could be 4 or 5 times that number.

Just from those two sources, we could decrease our reliance on foreign oil by 15-20%.  If making sure your tires are inflated is equal to that amount, between the Republican solution (drilling), and the Democrat solution (inflating tires), we could lower our dependence on foreign oil by 30%-40% in 5-10 years.  That is great progress!  Way to go political leaders!

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Average Americans Display PHEV Spirit

Today is Good News Tuesday.  After weeks and weeks of political squabbling about our current energy crisis, regular Americans are showing why our country is great.  American ingenuity and work ethic will drive our nation toward alternative energy sources and the goal of US energy independence, regardless of how hard the politicians try to get in the way. 

The Spirit of DC is a Plug-in Hybrid Electric Vehicle that is currently travelling all around America.  Called PHEV3A (PHEV All Around America), the goal of their country-wide tour is to show the nation that plug-in hybrids and electric vehicles are truly practical and are possible now, we do not need to wait for new technology to be developed.   The converted 2005 Toyota Prius has a battery pack that was added to the rear of the vehicle, allowing it to be charged from a regular electrical outlet.  This allows the Prius to run on all-electric power for a greater percentage of time, resulting in 100+ MPG. 

Imagine what a fleet of PHEV’s getting 100+MPG would do to our dependence on foreign oil.  Urge your elected officials to support tax credits for PHEV ownership, and ask them to help encourage our auto companies to quickly bring new PHEV’s to market.   Ask them to spend some of the existing $35 Billion in taxes that ExxonMobile paid last quarter on supporting alternative energy sources.  Toyota and Honda currently lead the field in electric hybrids, and if our auto industry truly does not want to become irrelevant, they need to quickly bring more hybrids and PHEVs into production immediately.

If you think you might be a potential sponsor you can contact PHEV3A’s Co-Chairs, Joseph Lado, at the virtual PHEV3A operations Center (Poc) by emailing joelado@yahoo.comand “on the Road” PHEV3A driver “EVJerry” Asher at EVisionA2Z@usa.net.  You can keep up to date on their progress at their blog.

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Electrifying Hoedown Spurs Shocking Powers

This September a human-powered sustainable dance club, called Club Watt by its owners, opens its doors in Rotterdam, Netherlands.  Club Watt proposes to power the club through human power.  This ultra-green dance club is deadly serious about taking themselves off-grid.

They create their energy through a high-tech floor that captures the movements of the dancers above and produces electricity down below.  Heavy duty coils and magnets provide the means of turning the moving floor into power.  The electricity is than stored in heavy-duty batteries and used as needed to power the Clubs’s sound system, lights, etc.  However, even with the high-tech floor, human power will only provide ~30% of the Club’s required energy.  The shortfall will be made up with solar power and a wind turbine.

What the company’s press release does not explain is that the average human only generates about one kilowatt-hour (kWh) per day.  At that rate, tapping into human energy to generate power proves to not be very efficient.  In the US, one kWH costs about a Quarter.  Obviously human energy will not be the US’s long-term solution for energy independence.

Human Power turns out be a great marketing tool for trendy companies that want to appear to look green, but in economic terms, it really does not make any sense.

If you think that this is shocking, read this.

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ExxonMobil pays World Record $32 Billion in Taxes during Q2

Exxon Mobil Corporation (NYSE:XOM) released yesterday that they paid an astonishing $32 Billion in taxes during the second quarter of 2008.   Apparently the federal and state governments have made out like bandits, cashing in on the rising price of crude oil. 

These new taxes outstripped the oil giant’s tax bill in the first quarter of this year. Given current oil market conditions, analysts said, that puts Exxon Mobil on track to break the record $100 billion in taxes it paid last year.

Meanwhile, Presidential candidate Obama sought to show that he was responding to calls for action in the face of rising gasoline prices.  Campaign officials said later, however, that they didn’t know when or how the candidate would use his future authority to increase taxes further.  Various Congressional committees and individual lawmakers scrambled to offer no relief to the already heavily taxed company.

Newsmakers were quick to point out that the amount of taxes that ExxonMobil paid works out to $4,114 in taxes per second.  And, every American would have had to pay an extra $100 last quarter if ExxonMobil did not pay their fair share of taxes.   

Due to the high level of taxation, capital and exploration project spending only increased to $7 billion in the second quarter.  Given the heavy tax burden, the company stock price slumped another 2.7%, causing losses in millions of 401K owners portfolios.   Over $10 Billion in value was wiped out of stock investor’s holdings after this announcement.  Individual investors are calling for tighter regulations on Big Government, demanding new WindFall Tax protection.

EXXON MOBIL CORPORATION
  SECOND QUARTER 2008
  (millions of dollars, unless noted)
                   
      Second Quarter   First Half
      2008   2007   2008   2007
  Earnings / Earnings Per Share                
                   
  Total revenues and other income   138,072   98,350   254,926   185,573
  Total costs and other deductions   115,866   80,422   212,528   151,581
  Income before income taxes   22,206   17,928   42,398   33,992
  Income taxes   10,526   7,668   19,828   14,452
  Net income (U.S. GAAP)   11,680   10,260   22,570   19,540
                   
  Net income per common share (dollars)   2.25   1.85   4.30   3.49
                   
 

Net income per common share - assuming dilution (dollars)

  2.22   1.83   4.25   3.45
                   
  Other Financial Data                
                   
  Dividends on common stock                
  Total   2,098   1,961   3,977   3,786
  Per common share (dollars)   0.40   0.35   0.75   0.67
                   
  Millions of common shares outstanding                
  At June 30           5,194   5,546
  Average - assuming dilution   5,261   5,620   5,311   5,665
                   
  Shareholders’ equity at June 30           124,826   116,350
  Capital employed at June 30           136,749   126,520
                   
  Income taxes   10,526   7,668   19,828   14,452
  Sales-based taxes   9,538   7,810   17,970   15,094
  All other taxes   12,297   10,665   23,904   21,073
  Total taxes   32,361   26,143   61,702   50,619
             
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