Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell
Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●Austerity is the government’s method for widening the gap between rich and poor.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive, and the motive is the Gap.
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Please remind me again: Why do they want the Keystone oil pipeline?
Keystone pipeline bill advances in US Senate
The US Congress on Monday edged closer to approving the Keystone XL oil pipeline. The legislation easily passed the House last week. It cleared its first major hurdle in the Republican-controlled Senate.
Monday’s vote officially kicked off debate on the long-delayed project, which if constructed by builder TransCanada would transport crude from Alberta’s oil sands south to refineries on the US Gulf Coast.
Republicans, who see Keystone as a top economic priority, argue that the project would create 42,000 construction jobs.
But Democratic opponents like Senator Barbara Boxer insist those are merely temporary jobs, and that just 35 permanent jobs would be created for the 1,179-mile pipeline, according to the State Department.
Republicans say moving oil by pipeline releases far fewer emissions than transporting it by rail or road.
Apparently, hiring 42,000 (!) people to build a pipeline (that would be maintained by 35 people) indicates we have a shortage of oil. So we have to make importing oil from Canada, easier.
Shale Seen by U.A.E. Hurt More Than OPEC in Oil’s Fall
OPEC nations can withstand a drop in crude prices to the lowest in more than five years, while shale drillers will probably be the first to curb production amid the collapse, the United Arab Emirates’ energy minister said.
The Organization of Petroleum Exporting Countries is battling a U.S. shale boom by resisting production cuts and signaling its readiness to let prices fall to a level that slows American output.
The U.A.E., OPEC’s fifth-largest member, pumped 2.7 million barrels a day last month and has a capacity of 3 million, according to data compiled by Bloomberg. The Persian Gulf nation will stick with its plan to boost capacity to 3.5 million barrels a day in 2017, in spite of the global glut.
Suhail Al Mazrouei, the U.A.E. minister, told reporters today in Abu Dhabi. “If the price is right for them to produce, then fine, let them produce. If the price is not right, then they will reduce.“
So let’s get this straight. U.S, oil independence relies on shale oil, which is more expensive to produce than well oil. OPEC is ramping up well oil production in order to force U.S. shale oil producers to cut back.
OPEC’s squeeze on U.S. oil independence could succeed
From the Saudi perspective, the primary benefit of high oil prices has accrued to non-OPEC members. A cut in Saudi or OPEC production to support prices would only further benefit these oil producers.
Low oil prices can be seen through a Saudi prism as reprisals against the U.S.
It is designed to undermine American attempts at greater energy self-sufficiency through aggressive exploitation of its shale gas and liquid resources.
It is revenge for America’s strategic rebalancing away from the region to a greater Asian focus.
In the short run, producers may continue to produce and sell at below breakeven prices. If oil prices stay low for a sustained period, then producers will cut production, with marginal- or higher-cost firms forced to close or declare bankruptcy.
In summary, the Keystone pipeline is unnecessary, with oil prices already low (and falling) and oil stocks already high (and rising).
It is environmentally harmful and will reduce U.S. oil independence, exactly what our enemies in OPEC want. It will create just 35 jobs, and help put some U.S. oil drillers into bankruptcy. Increasing the supply of oil constitutes revenge against America.
The Republicans, (especially), want anything the rich pay them to want, and despite compulsive flag waving, are not concerned about U.S. oil independence, and are no strangers to revenge against America (remember those government shutdowns).
(As of Novemeber, 2014) a 56 percent majority of Americans support building the pipeline to transport oil from Canada through the United States to oil refineries in Texas. Eighty-three percent of Republicans, 53 percent of independents and 40 percent of Democrats are in favor of it.
Proponents of the project feel more strongly than opponents: 31 percent support the pipeline strongly, while just 12 percent strongly oppose it.
This, the re-election of Bush/Cheney, and the recent Republican victories in Congress, tell you all you need to know about the American voting public.
But, please remind me again: Why do they want the Keystone oil pipeline?
Rodger Malcolm Mitchell
Monetary Sovereignty
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Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————
10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.
THE RECESSION CLOCK
Vertical gray bars mark recessions.
As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.
#MONETARYSOVEREIGNTY
#Monetary Sovereignty - Mitchell 
Why? They wanted it ten years ago when oil prices were high and rising. Canada has given up waiting for us, and they’re building pipelines to their coasts instead of to the US. Keystone may not get built even if Obama were to approve it.
Increased oil supply is revenge against America ??? Please, Br’er Fox, don’t throw me in the briar patch!
Of course, if it is all a Saudi conspiracy to drive the shale producers out, their ultimate goal is to raise the price up to even higher levels after shale production ceases. If it becomes clear to all that they can do it again whenever they want, investment in exotic drilling techniques will not resume no matter how high a price the Saudis set.
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” . . . if it is all a Saudi conspiracy to drive the shale producers out, their ultimate goal is to raise the price up to even higher levels after shale production ceases.”
Exactly.
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“But, please remind me again: Why do they want the Keystone oil pipeline?” RMM
I’m not sure the proposition looks as profitable now as it did when oil was over $100 dollars; but this is my take on the items that really matter.
– The pipeline should only be built if it is profitable to do so. It appears that it will be profitable as corporations are pushing for this – if they were going to lose money, they wouldn’t do it.
– The pipeline will increase the supply of oil in the United States, which in turn will result in lower gas prices at the pump. Could a few companies go under because of this? Sure.. Do I and the other 300 million Americans care if a company goes under if it means lower prices for us? I bet not. If the company goes under, it’s because it is badly run – not because of this pipeline.
– Jobs matter, but it’s not the only thing that matters. Not only gas prices at the pump, energy prices across various areas of the country would fall because of this pipeline. Income not spent on energy could be spent on another sector in the economy.
The question here is whether the government should allow an additional supply of energy into the country. In my book, the government should step out of the way and let these privates do what they need to do to bring the supply of energy that the American people have demanded. Shale drillers be damned.
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And then there’s sabotage and earthquakes and construction problems. We need to look at this desire of ours to pull the cake out of the oven half-baked, exactly like we did with the wonderful, safe, clean, eternal source of power that atomic energy promised us in the 1950’s ad campaigns.
The only really safe, clean, efficient power is 93 million miles away.
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Keystone pipeline and Keystone pipeline XL—two complete different operation projects.
Keystone pipeline XL—is and extension to the Keystone pipeline that will be completed in mid 2015
We keep hearing in the news and from Congress—we need to start the Keystone pipeline—people
Wake up—Keystone pipeline is in full operation—
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The Keystone Pipeline System is an oil pipeline system in Canada and the United States.
It runs from the Western Canadian Sedimentary Basin in Alberta, Canada to refineries in Illinois and Texas, and also to oil tank farms and oil pipeline distribution center in Cushing, Oklahoma.
It is a three (3) phase operation project—started in 2008 and will be fully completed in mid summer
2015—start dates and commissioned date—(commissioned date is when it was put into operation)
Keystone Pipeline-(Phase 1) (Done)- Construction started-Q2 2008- Commissioned June 2010
Keystone Pipeline- (Phase 2) (Done)[1]- Construction started-2010- Commissioned-February 2011
Phase 3 is a 2 part phase—(a)&(b)
Phase (a) Construction started-Summer 2012- Commissioned-January 2014
Phase (b) Construction started 2013-Commissioned Expected mid-2015
Can read more—-( http://en.wikipedia.org/wiki/Keystone_Pipeline)
Oil Spills—if you ask someone what was the biggest inland oil spill—and where at they do not know
Because it was not given that much attention from the news and media.
–Gulf of Mexico Oil spill on 20 April 2010 just about everyone in the world has heard about.
But the Kalamazoo River Oil Spill—(happened on July 2010—but all the news media reported
was about the Gulf of Mexico Oil Spill—(what was the cause of the oil spill—Oil sands from
Athabasca,Canada–
The Kalamazoo River oil spill occurred in July 2010 when a pipeline operated by Enbridge (Line 6B) burst and flowed into Talmadge Creek, a tributary of the Kalamazoo River. A six-foot break in the pipeline resulted in the largest inland oil spill, and one of the costliest spills, in U.S. history. The pipeline carries diluted bitumen (dilbit), a heavy crude oil from Canada’s Athabasca oil sands to the United States. Following the spill, the volatile hydrocarbon diluents evaporated, leaving the heavier bitumen to sink in the water column. Thirty-five miles of the Kalamazoo River were closed for clean-up until June 2012, when portions of the river were re-opened. On March 14, 2013 the Environmental Protection Agency (EPA) ordered Enbridge to return to dredge portions of the river to remove submerged oil and oil-contaminated sediment.-clean up is still a going project for 2015.—can read more—see
Can read more—see
http://en.wikipedia.org/wiki/Kalamazoo_River_oil_spill
Nebraska, and the Ogallala Aquifer, one of the largest reserves of fresh water in the world.
. KeystoneXL will be running right over top of it—-(Read up on Ogallala Aquifer)– http://en.wikipedia.org/wiki/Ogallala_Aquifer
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Good commentary. So, to all those Republicans and a few Democrats, I ask again, “Why do you want the Keystone oil pipeline.”
(I know why the Koch brothers want it; I know why the refiners want it. But why do YOU want it?)
How about: decommission it, tear it down and build a nice, long park? The politicians have been bribed, but YOU haven’t.
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Here is an article containing a ridiculous justification for the pipeline:
You see, the pipeline wouldn’t add very much to global warming, so it’s O.K.
By that reasoning, it’s O.K. for you to drive a “gas guzzler” car, because you add only an infinitesimal amount of CO2 to the air.
And it’s O.K. for a coal burning electrical generation plant to spew coal ash into the air, because it only adds a tiny amount of pollutants.
And it’s O.K. for the pipeline to leak oil into the environment, because that leakage would affect only a tiny fraction of the U.S. and an even tinier fraction of the world. So don’t worry about it.
And really, it’s O.K. for you never to vote, because how much does one vote count, anyway?
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UAE says OPEC will no longer shore up oil price
The United Arab Emirates said on Tuesday that OPEC will no longer move to shore up crude prices, arguing that rising North American shale oil output needed to be curbed.
Analysts say that richer cartel members like the UAE have been ready to accept the price fall in the hope that it will force higher-cost shale producers (i.e. U.S. oil producers) out of the market.
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The United States is never going to be energy independent — at least of oil. We still only produce 60% of our needs on a BTU basis. The Energy Department recently changed the definition of “oil” so they include more liquid volume but it didn’t change much in total energy.
I don’t believe the crackers are the primary target of Saudi Arabia, which is the swing producer in the world. They post their price for oil every day and let refiners buy as much as they want.
I think the primary objective is to hurt Saudi Arabia’s nemesis Iran and also Russia. The oil from fracking in the United States is forecast to peak in 2020 and the reserves of oil in shale has been cut by 65%.
I don’t believe Saudi Arabia is worried at all about U.S. frackers. I think there is a good chance Saudi Arabia cut the price with secret agreement of the United States. It hurts Iran and Russia far more than sanctions.
The current operating fracking wells are not hurt too much from the lower price. Fracking weeks only last about two years and the drillers buy futures to hedge the price of oil. Traditional oil wells las about six years so futures is not really an option.
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You may be right about the “secret agreement.” We’ve heard a notable silence by the Obama administration.
Further, the Saudis need the U.S. for protection, and it is a question as to how far they would go to damage their great protector.
As for, “The oil from fracking in the United States is forecast to peak in 2020 . . . ,” where have we heard the term “Peak Oil” before?
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