Podcast 271

Gas Oil Collapse. Energy and Oil and Politics. We may be at the beginning of the end of an era in the energy markets, politics and economic policy but people are never going to figure it out with the terrible job the media is doing reporting on these topics. Gas is below two dollars in 13 states, crude trading at 55 dollars a barrel, with more drops expected. Meanwhile, OPEC refuses to cut production, even refuses to hold a meeting to discuss it. The drop in oil over the last few months of 40 percent so far, most of it in the last two months is beginning to have an effect. OPEC’s price war on Frackers in the US, Canada and Brazil, the international version of a gas war, is beginning to have economic and political effects. When the cheerleaders talk about oil ‘acting like a tax cut’, remember there is a lot more to this story. If energy production in the US is a big piece of the manufacturing boom, what happens when lower prices curtails exploration? Will lower oil and gas prices still act like a tax cut? What about disinflation, or outright deflation in commodity prices? What about dropping demand due to economic slow downs in China, Europe, and Latin America? Do you think the US is ‘decoupled’ from the rest of the world’s economies? On Wall Street, the story is completely different. There, investors are moving money from the market to long term Treasury Bonds, an indication of expected weakness? Meanwhile, the Federal Reserve will be hard pressed to raise interest rates (which its wants, and perhaps needs to do) in the face of declining commodity prices. This isn’t just an international problem. A Minnesota State Legislator wants to reduce farm property taxes, due to the decreased revenues farmers are seeing on their crops. As the sun sets on the Democrat Senate Majority, and rises on a huge Republican majority in the US Congress as well as state legislatures and governor’s mansions, we’re also about to enter a new era in politics, or perhaps close an old one. How will the last two years of the Obama administration differ from the previous 6? Despite the President’s progressive rhetoric, does the budget deal indicate will be a little different when it comes to horse trading with Congress? Sponsored by Ryan Plumbing and Heating and Depotstar. 

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Podcast 270

Florida Christmas. We’re in a ‘News Lock’. This happens in between major events, when the media machine keeps churning away on the same topics, even though everyone has moved on. And while The Bob Davis Podcasts continues to keep an eye on world and national events, the great thing about podcasting is, there’s no point in joining the crowd, repetitively pounding away on the same nonsense, and saying nothing new. We’re getting close enough to Christmas, 2014 to say its the holiday season. The trials and tribulations. The expectations. The disappointments. And, the good things too. (Editor’s note: One of the things that comes up this time of year for me is the road trips my family used to take to Florida every other year, to spend Christmas there with my grandparents. It was oddly free of the pressures and intensity of ‘The Season of Peace’. I think its because we were on an adventure, and the main topic of conversation was where to stay when we got to Valdosta.) Take a break from the ‘News Lock’ and reminisce about your own family’s Christmas road trips. From the used cars my father insisted on buying, including the 63 Chevy, 66 Buick ‘Vista’ wagon, the 64 Elektra and the 68 Elektra, a lifetime exposure to secondhand smoke, the luxury of the Howard Johnson’s, versus the TravelAll (Dad’s favorite, cause it was cheap!), Uncle Roy in Jacksonville, the Orange Groves and finally…finally, the Ocean. Plus, discount shopping with my Grandfather, spilling Raisinets on Grandma’s expensive couch, Christmas lights in the humid night air, walks down the beach, and Jelly Fish. Lots of Jelly Fish. And the places we visited on those trips. Kennesaw Mountain (Editor’s Note: Which I thought was in Kentucky, but in fact it is in Georgia), Caverns, Saint Augustine and the Mansions of South Florida. In today’s high speed culture, most people fly if they go anywhere, and its too bad because there is much to be learned on a road trip. Sponsored by X Government Cars and by Depotstar. 

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Podcast 269

Torture. Budget. Washington struggles with the release of a damning Senate Intelligence Committee Report on Enhanced Interrogation Techniques, and democrats appear to be willing to shut the government down over language in the budget bill concerning Dodd/Frank. These issues show how the contours of ‘partisanship’ and the causes of ‘gridlock’ will change after the new congress is sworn in, in January 2015. The Senate Intelligence Committee investigation and report was conducted and written wholly by democrats, offers no suggestions on what to do about what it called torture in the future, or for curtailing the CIA when it runs amok, and none of the accused parties were interviewed for have had the chance to defend themselves. As former Democrat Senator and Senate Intelligence Committee member Bob Kerry suggests, this does not bode well for the objectivity of the report or win any friends at the CIA. Even President Obama has been put in a difficult situation, since current CIA Director Brennan is furious that the report paints a one sided picture of what happened at the agency after 9/11. Maybe it is a good thing this information is released now, maybe not. One thing is for sure, neither party has come up with a foreign policy that addresses asymmetric warfare going forward. Libertarian, Interventionist, Neoconservative, Neoliberal, or whatever you want to call them, these policies aren’t going to be effective in future conflicts where it is likely potential state enemies of the US will use asymmetric methods because they strike at our weaknesses. On the budget front, Democrat Senator Elizabeth Warren threatens to block passage of the budget bill because of changes it makes in Dodd/Frank regarding how derivatives are regulated. Which party is ‘obstructionist’ now? What will the minority party do after Republicans take over the majority in Congress? Expect a return to ideas like increasing gas taxes and ‘rebuilding’ America’s ‘crumbling infrastructure’, and to the idea that – since we can’t prove ‘inequality’ hurts the economy – we now have to deal with the ’empathy gap’. This is the idea that the working poor are just unfortunate and that we have to have laws to make the economic system ‘fair’, since hard work and brains have nothing to do with success. The founding documents talk about being created equal and having unalienable rights to life and liberty … not a ‘fair’ economic system. What you do with your liberty is your choice, rich or poor. The good news? All of these stories will be swept from television screens because of the storm-of-the-century in California. Finally, out of nowhere a movement we can all get behind, or in front of. “Free The Nipple”. Sponsored by Baklund R&D. 

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