The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Luke Puckett Gets It

Posted by iusbvision on August 7, 2008

For more Luke Puckett videos please look at this post  –

In 2007 Joe Donnelly [our current congressman] voted four times against increased domestic drilling. These votes were, in order, Roll Call 40, Roll Call 553, Roll Call 578 and Roll Call 1171. They may be accessed at: – Luke Puckett

Luke is right on. Nancy Pelosi and Barack Obama say that expanding domestic energy production will not make prices go down in the near future. The evidence is in on just how wrong Pelosi and Obama are.

Dr. Morris Coats is the lead author of a study that shows how expanding production impacts futures markets to bring prices down because they know that more supply is on the way. This market impact lowers prices. The reason prices are falling now is because President Bush dropped executive road blocks to new drilling, and now it is time for Congress to do the same.

When Dr. Coats and his team submitted the study for peer review it was denied for publishing because the peer review committee said that it is so obvious that expected increases in supply will lower prices because of the effects on futures markets that this information is common knowledge and nothing new.

Read it for yourself right from the rejection letter:

I regret to say that we will not be able to publish this work. Basically, your main result (the present impact of an anticipated future supply change) is already known to economists (although perhaps not to the Democratic Policy Committee) . . . It is our policy to publish only original research that adds significantly to the body of received knowledge regarding energy markets and policy.

Our friends at National Review have more details about this study and here is the link –

UPDATE:  – The Detroit News isn’t buying Obama’s energy plan either:

But at the same time, he proposed taking away any incentive oil companies would have to expand drilling and increase supplies by pushing a windfall tax on Big Oil’s profits to fund the $1,000 rebate checks.

Perhaps the senator is hoping the checks will make Americans forget, as he apparently has, about what happened when Presidents Nixon, Ford and Carter played the price and profit limiting game the 1970s.

As the pay-off for oil exploration dwindled, so did oil supplies, driving up fuel prices and creating long lines at the pump. There’s no reason to think Obama would be any more successful in executing this dubious redistribution strategy.

His plan also would give the state-owned oil companies in places like Saudi Arabia and Venezuela a huge advantage over domestic companies, since they’d be beyond the reach of Obama’s profits grab.

Chuck Norton

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