The Bob Davis Podcast

Podcast 274

Story Lines. A few loose ends on the big stories, heading into the weekend. Frustrating that most media outlets continue to peddle the story that all the President has to do is ‘order’ relations with Cuba normalized, and they are. Then comes all the stories about how it got done, who benefits, the businesses that are chomping at the bit to get into Cuba. Thing is, the law concerning sanctions on Cuba is different. These aren’t sanctions placed entirely with executive orders. A welter of laws regarding just how relations are to be normalized with Cuba will have to be repealed, or the President is going to have to demonstrate to Congress that Castro Land has suddenly become a free country. Meanwhile there is mounting evidence that ‘normalizing’ relations with Cuba will strengthen a murderous regime, and has enriched itself, and left the people of Cuba with nothing. These facts are apparently not interesting to the  media in the US. The President says sanctions haven’t worked against Cuba. Aside from asking ‘which ones?’, if sanctions don’t work why did Secretary of State John Kerry not say, just prior to sanctions being placed on Russia, ‘Sanctions work’. Well? Which is it? If they don’t work, why waste your breath on Russia, or for that matter North Korea. The US now says North Korea hacked Sony, with help from China and Russia. But it’s all Sony’s fault, right? Let’s look at it this way; Sony just got raped by a fraternity of North Koreans, Chinese and Russians and we’re blaming the victim? It gets weirder and weirder everyday. The Sony hack, and the company’s reaction, as well as the reaction of the United States Government, will have far reaching consequences. The President seems fine standing up to right wingers, clinging to their guns and religion, but apparently not when it comes to China, Russia and North Korea. With Obama on his way to Hawaii, for yet another vacation, don’t expect him to be standing up to anyone in the near future. The good news for the weekend? The IRS head says the agency may have to shut down for a few days because of budget cuts. Merry Christmas! We now know how to stop government spending. Just keep cutting the IRS until it closes, and they won’t be able to collect taxes, much less raise them. And, a winter storm is headed across most of the country for Christmas. In the upper midwest that will means snow. Sponsored by Depotstar. 

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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 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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