Category Archives: Economics

Miscellaneous economy stuff

Using the Power Ceded to Them

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OPEC once again has rejected pleas to increase oil production in the face of rising oil prices.

Ministers of Arab oil-producing countries gathered in Saudi Arabia on Sunday, refusing pressure for OPEC+ to increase production again amid coronavirus pandemic recovery efforts and as a potential war looms in Europe.

And

On Sunday, Saudi energy minister Prince Abdulaziz bin Salman told an industry conference in Riyadh how the pandemic and recovery efforts have “taught us the value of caution,” Reuters reported.

Bin Salman and his OPEC counterparts also have learned another thing: the value of supporting Russia—the major OPEC ally that adds the ‘+’ to OPEC—rather than a timid and irresolute Progressive-Democrat American administration.

Bin Salman and his OPEC counterparts also have been reminded of OPEC’s economic power as the world’s major oil producer, a power the organization also wielded against the US in the ’70s when we really were dependent on Middle East oil for our economy.

The difference today, of course, is that we have no need to be dependent on others—not OPEC, not an enemy nation oil and natural gas exporter—for our economic independence (which means our political independence, also). Our current dependency is solely the work of President Joe Biden (D) via his active war on our energy production industry and his surrender to Russia on Nordstream 2 after Russian President Vladimir Putin’s minions shut down Colonial Pipeline as a demonstration of things to come if Biden didn’t yield.

An Appellate Court Gets One Right

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The Tenth Circuit has issued a temporary injunction against President Joe Biden’s (D) rule requiring outdoor recreational groups under contract to the Federal government or doing their business on Federal property to pay their employees $15/hr, whether the value of those employees’ work output is that valuable or not.

The “plaintiffs have demonstrated an entitlement to relief from the minimum wage order in their particular circumstances,” the court ruled, and enjoined the government from enforcing the $15-an-hour minimum wage mandate, which recreational companies said would force some of them out of business.
The court also granted the request because it found the plaintiffs were “likely to succeed on the merits” and “suffer irreparable harm in the absence of preliminary relief.”

The Pacific Legal Foundation had brought the case last fall, arguing that

the requirement amounts to “an executive power grab to force a social agenda through federal contractors.”

That power grab, as the PLF argued, is barred by our Constitution:

Only Congress can make law setting minimum wages. The president can’t establish a minimum wage through administrative fiat. The Constitution says that only Congress can make laws that bind the public.

Indeed. This is what Art I, Sect 1, makes that explicitly clear:

All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.

Biden-Harris knows this full well, as do his Cabinet Secretaries in on or otherwise supporting the grab.

This is the Progressive-Democratic Party pushing its social engineering agenda with no regard for statute or Constitution—those are just speed bumps on their road to control.

That and maybe Something Else

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Fracking-based energy production is not expanding at anything like a useful rate, even as oil approaches $100/barrel, which only benefits Russia while harming us American consumers.

America’s largest frackers are reporting huge profits but plan to keep oil production in low gear this year, adhering to an agreement with Wall Street, even as prices approach the $100-a-barrel mark for the first time since 2014.

That “agreement” consists of

commitments they made to limit production and return more cash to shareholders, an effort to win back investors who fled the industry after years of poor returns.

That’s certainly a factor. However, even as President Joe Biden (D) claims he wants these producers to produce more in the face of those rising costs, he’s also spending far more energy begging OPEC—and Russia!—to produce more.

There’s another factor that may be strongly informing these producers’ decisions, though.

Maybe these producers just don’t trust Biden, given his openly declared war on our hydrocarbon energy industry—on the frackers—and Biden’s refusal to undo all—any—of his anti-carbon regulations and his other bars aimed explicitly at limiting oil, natural gas, and coal production.

Maybe they think Biden would only resume his war against them once the present energy and resulting inflation crises pass.

They wouldn’t be far wrong.

What Happens When

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This is an example of what happens when President Joe Biden (D) presses his assault on our nation’s energy production industry, presses his enthusiastic destruction of our energy independence, and does his kowtowing to Russia (and to OPEC) regarding that nation’s and that cartel’s oil and natural gas production and sale.

He’s reduced the United States of America to begging other nations for energy, and those nations along with Russia are now showing their contempt for Biden’s obsequiousness.

The headline summarizes the matter.

As Oil Nears $100, Saudis Snub US, Stick to Russian Pact Amid Ukraine Crisis

And this:

Rising oil prices and fears of a Russian invasion of Ukraine have created a dilemma for Saudi Arabia: help the West by pumping more crude to tame the market, or stand by a five-year-old oil alliance that is helping Moscow at the expense of Washington.
For now, the world’s largest crude exporter is sticking with Russia.

And this:

President Biden has repeatedly called on Persian Gulf producers to pump more oil to reduce gasoline prices that, for Americans, are about twice as high as they were earlier in the pandemic. Those calls have grown more urgent as oil prices have risen toward $100 a barrel….
Instead, the Saudis have said they won’t pump more than they agreed to last year as part of a deal between the Organization of the Petroleum Exporting Countries and Russia[.]

It doesn’t matter a whit to Biden that this problem wouldn’t exist if he got his Biden-Harris administration out of the way of our domestic oil and natural gas production so we could go back to being independent of our enemies and acquaintances for our energy, our economic life.

It doesn’t matter a whit to Biden that European nations’ dependence on Russia for their energy wouldn’t exist if he got his Biden-Harris administration out of the way of our domestic oil and natural gas production so we could go back to supplying Europe with oil and natural gas.

Monarchism Returns to Canada

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Canadian Prime Minister Justin Trudeau has invoked his nation’s Emergencies Act because Canada’s national security is at risk from the truckers’ peaceful protests against his government’s…over-exercise of Federal power.

The blockades are harming our economy and endangering public safety. We cannot and will not allow illegal and dangerous activities to continue.

As is typical of modern-day liberals, who resemble 18th century monarchists more than they do actual liberalism, Trudeau is shifting blame for the crisis in Canada, while also mischaracterizing the actual crisis.

What’s actually harming Canada’s economy are the vaccinate-or-be-fired mandates that prevent, for instance, Canada’s shipping industry from shipping.

The actual crisis is Trudeau’s monarchical invocation/misuse of the Emergencies Act to directly assault Canadians’ individual liberties, demanding, in the present instance, vaccinations in complete disregard of those personal liberties. Trudeau’s invocation is aimed at Canadians’ right to protest their government’s misbehaviors and is nothing more than a personal power grab in response to his ego being bruised by those peasants not listening to him.

Maybe the truckers need to go truly nationwide and without any sort of blockade, even by Trudeau’s fevered standard, simply refuse to ship anything at all, at least to Federal government facilities.