Saturday, April 30, 2011

"American OPEC"
by Scott Ryan

Much has been said about the rising price of crude oil  over the past months but one aspect that hasn't been the focus has been that while oil itself is still a fair distance from its all-time high of $147 a barrel (light-sweet), gasoline is now just pennies away from the all-time high of $4.11 per gallon.

While the pundits are focusing on our need to drill for more oil at home, they are not discussing this disparity between prices then and now and what might be done to mitigate the problem in the more immediate term.

Some of our major oil companies drill the oil, refine it and distribute gasoline.  Yet, despite having a lower cost on that which they themselves drill from their own wells, they also purchase oil on the open market at the higher costs in order to meet the demand for gasoline.
(1 barrel of crude oil = 42 US gallons. It produces from about 21 percent to 35 percent of gasoline or petrol)

This past week, oil giant Exxon Mobil Corp said its profit rose 69% to nearly $11 billion in the first quarter, as $100-a-barrel crude prices helped the company’s bottom line reach levels not seen since 2008.

Politicians pounced on that as they usually focus on the large number itself, instead of the actual profit -margins- of the oil companies as consumers are naturally feeling the pain at the pumps.  It is much easier to incite anger over a dollar figure than a profit - percentage.

To be sure, we can definitely use more oil supply; however, the blame is not being properly ascribed.  A great deal of the rise should rightfully be given to our spendthrift government.  They use the platitude of how we are addicted to oil but in reality it is their addiction to SPENDING that forced the Federal Reserve to implement the past two quantitative easing campaigns in order to buy up hundreds of billions of dollars worth of debt instruments issued by these prodigals.

Trillions of dollars worth of unsustainable debt is signaling to the financial markets that more QE is inevitable regardless of the jawboning rhetoric of Ben Bernanke who up until last week refused to admit that inflation even existed.  Heretofore, he was warning of DEFLATION at the outrage of the American consumers who are not struggling with de-flation when they try to put food on their tables, heat their homes and fill up their gas tanks.

If you look at the price of all the items essential to human sustenance and the commodities market as a whole, one could conclude that the rising price of oil is just one of many items escalating in price.  The enormous rise in cotton is NOT due to the inarguable fact that we need more drilling.  It is more so because we need to STOP PRINTING!  And a change in monetary policy isn't going to happen the way our government is resisting fiscal responsibility.

To put the icing on the cake, last week it was announced that new applications for unemployment benefits unexpectedly jumped by 25,000 to the highest level in three months, in a worrisome sign that recent improvement in hiring trends may have stalled.  So we have prices rapidly escalating and less people working.  Sounds like "stagflation". 

Then we have loons like Bill O'Reilly on a crusade against the evil "speculators".  That doesn't deserve much attention and I will just refer to my July 28, 2009 column (The Intellectual indolence of those who attack Speculators) in order to address the non-issue.

So now that much of the blame has been properly attributed, I do believe that gasoline prices could and should be somewhat cheaper.  Going back to my point regarding the disparity between gasoline being near the all-time high of when oil topped at $147 a barrel, an interesting statistic that is rarely the focus of the financial media is the refining capacity utilization rate.  Just as we have been outraged at OPEC for the cartel's manipulation of supply when they meet and arbitrarily decide to cut back on their output, I believe the periodically released statistics show that the oil companies do something similar here with their output of gasoline.

We have often contended that we need to "build more refineries" because "we haven't built one in thirty+ years" and we cite the environmental barriers to doing so.  I do not discount that being true; however, given the current utilization of the refineries that we DO HAVE, I don't believe that the oil companies would -want- to spend hundreds of billions of dollars of their capital even if they could do so without obstruction.  I believe that is because there is little incentive to invest so much capital when they can simply sell their refined product now at much higher prices.

To support my thesis, take a look at the U.S. Percent Utilization of Refinery Operable Capacity (Percent).  These monthly statistics of the percentage of refinery utilization from January 1985, when oil was MUCH cheaper than now - go all the way through February 2011, which were just released.  In the 80's and early 90's they naturally kept the refining low when their profits on gasoline were quite low.  Then in the late 90's when oil was at perhaps a fair and reasonable price (for the industry AND consumers) , they were refining at much higher capacity, all the way up to 99.8% in 1998. (continued below statistics)

Year   Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov  Dec

1985 74.0 73.8 73.7 76.5 78.4 79.3 80.8 77.7 76.9 78.6 80.3 81.2

1986 81.4 77.9 75.9 81.5 86.0 86.3 84.1 86.8 85.5 82.6 83.7 83.6

1988 82.8 80.9 83.3 84.0 85.7 86.0 86.5 87.4 83.7 83.4 83.9 85.1

1989 86.2 82.8 83.8 83.7 86.5 89.6 88.9 89.3 88.4 86.1 86.1 84.0

1990 87.8 87.9 83.9 85.0 87.1 89.1 92.4 90.7 91.1 83.5 84.2 82.8

1991 82.5 84.4 83.2 84.6 87.5 89.8 88.8 89.1 88.3 83.4 83.7 86.6

1992 83.4 81.3 85.1 85.5 89.4 92.4 91.9 89.1 90.7 89.3 90.1 87.5

1993 86.8 86.6 89.3 91.3 92.8 95.1 95.1 92.7 92.8 91.8 91.9 91.2

1994 89.8 88.7 87.6 92.4 95.4 95.8 95.5 96.4 94.4 89.8 92.7 92.6

1995 89.6 87.9 86.7 90.5 94.0 95.6 94.0 94.0 95.6 90.5 92.1 93.3

1996 90.6 90.2 91.8 95.0 95.8 96.4 94.9 95.0 95.9 94.6 94.2 94.3

1997 89.1 88.0 90.6 92.6 97.5 97.8 97.1 98.9 99.6 97.0 95.8 97.2

1998 93.3 90.7 94.7 97.5 98.4 99.1 99.2 99.9 95.0 89.6 94.8 95.1

1999 90.4 90.0 90.9 94.6 93.9 93.5 94.9 95.5 94.1 91.1 92.0 90.4

2000 85.7 86.4 89.7 92.6 94.7 96.2 96.8 95.8 94.2 92.2 92.6 93.9

2001 90.2 90.5 89.4 94.9 96.4 95.6 93.9 93.3 92.2 92.0 92.2 90.2

2002 87.7 86.6 87.9 93.0 91.5 93.1 93.5 92.9 90.4 87.5 92.6 91.1

2003 87.2 87.4 90.5 94.1 95.8 94.7 94.0 95.0 93.1 92.4 93.6 93.0

2004 89.1 88.8 88.5 92.5 95.6 97.5 96.8 97.1 90.1 90.2 94.4 95.0

2005 91.3 90.6 90.8 92.8 94.2 97.1 94.2 92.7 83.6 81.3 89.3 89.4

2006 87.0 86.5 85.8 88.0 91.2 93.0 92.5 93.2 93.0 87.9 88.0 90.6

2007 88.2 84.7 87.1 88.1 89.7 88.5 91.2 90.8 88.9 87.4 88.9 88.7

2008 85.8 85.0 83.2 86.2 88.8 89.5 88.8 87.1 74.6 85.3 85.8 83.9

2009 82.3 81.5 81.5 82.7 84.0 86.0 84.2 84.1 84.9 81.5 81.1 81.3

2010 80.0 81.2 83.1 88.6 88.0 90.2 90.9 88.9 86.5 82.2 86.0 88.4

2011 84.9 79.8

If you look just above at the refining rate from February 2011, considering recent evidence demonstrating that the oil companies are not by any means HURTING for profit, it seems that it would be difficult to justify a reason why these companies should only be utilizing their refining capacity at a LOW that we have only seen for one month since 1987.  That's only the second time refining has seen the 70 percent range in the past 24 years!

I am not saying that the elected spendthrifts of all people have any right to step in and force them to increase refining.  I AM saying that the oil companies have a moral obligation to step up the refining regardless of the fact that they are buying oil in the open market, even if it means making a little less profit.  Sometimes people who run companies can be short sighted and make decisions based upon short term profits at the expense of their long term interests, especially publicly held companies where those running it are compensated by the exercise of short term stock options - as opposed to the old days when companies were run by the majority owners.

In the LONG TERM, it may be worth shaving a few billion from the quarterly profit if they can help to prevent the nation's economy from spiraling into a depression.  I know I will get e-mails telling me about the different locations from which the oil is shipped, the various types of crude and the couple weeks lag-time of gas prices versus the price of crude.  That has already been taken into account here.  I am talking about a macro trend and there is no way that they should be refining at an appalling 79% of capacity during a potential financial, inflation induced meltdown waiting to happen.  This is not much different than the actions of OPEC except that I'm not saying there is an actual meeting between the oil companies agreeing to reduce output of their product.  That can be accomplished with a nod and a wink.


Thursday, April 21, 2011

The CB Patriot Project launch
by Scott Ryan

This project has been on my heart for the past few months as I have observed the behavior of the Saboteur in Chief and reconcile it with the fact that he has been seeking to derogate dictatorial power, especially over free speech on the Internet.

As I wrote at

Americans are dangerously inter-dependent upon cell phone towers and Internet servers throughout the nation. Whether intentional or by natural disaster, ALL of these can be instantly shut down during “emergencies”.

The CB Patriot Project is organizing around a simple technology and making it the back-bone of an emergency plan. By linking patriotic Americans across their homes, cities, states & country, we will be prepared for national or regional emergencies that could otherwise shut down our ability to communicate with one another.

After the financial meltdown of 2007 and the 2008 elections, millions of Americans organically organized and united with one another in a way that might never have happened without the Internet. If you remember how empowering it was to be among the millions who rallied together nationwide, you KNOW that the most important asset we have is EACH OTHER.

Those who desire to stifle liberty know that communication is key and that is why they want more control over the Internet and cell towers. That is why it is vital that no event and no would-be tyrant can ever take that away from you or any other American.

We are being so overwhelmed while our core American values are being attacked from ever angle, so much so that it is difficult for most people to keep up with the daily encroachments against our liberties. Following are a couple articles from the past year expatiating on how the left are trying to usurp enough power to shut down all Internet communications in the country in the event of loosely defined, subjective "national emergencies". Read the excerpts; then decide for yourself whether you are going to WAIT until they derogate this power before making a backup plan for yourself.

If you want to prepare, select the The Plan link at the top or bottom of this page.

“Bill would give President Emergency Control of the Internet”

“Internet companies and civil liberties groups were alarmed this spring when a U.S. Senate bill proposed handing the White House the power to disconnect private-sector computers from the Internet.

They're not much happier about a revised version that aides to Sen. Jay Rockefeller, a West Virginia Democrat, have spent months drafting behind closed doors. CNET News has obtained a copy of the 55-page draft of S.773 (excerpt), which still appears to permit the president to seize temporary control of private-sector networks during a so-called cybersecurity emergency.

The new version would allow the president to "declare a cybersecurity emergency" relating to "non-governmental" computer networks and do what's necessary to respond to the threat.”

Read more:

Obama to be given the right to shut down the internet with 'kill switch'
“President Obama will be given the power to shut down the Internet with a 'kill switch' in a new law being proposed in the US. He would be able to order popular search engines such a Google and Yahoo to suspend access to their websites in times of national emergency.

Other US based Internet service providers as well as broadband providers would also come under his control in times of a 'cybersecurity emergency.' Any company that failed to comply would be subject to huge fines.”
Read more:

This is old news. This is what the left wants. It is no secret. The fact that this "kill switch" was proposed to be given to the President demonstrates that something is very wrong.  He seeks to do whatever he can to gain such power including circumventing congress by giving such “authority” to the unelected FCC bureaucrats who willingly cooperate with his agenda.

THAT is the reason why The CB Patriot Project was established. CB’s are not dependant upon the advanced technologies of the Internet and cellular phone towers. CB's CAN be used in the event those more recent technologies are removed - even if the ELECTRICAL POWER GRID goes down. CB's utilize the free airwaves and can be run on batteries, including car batteries.

Click Here to proceed to the detailed plan.  I hope that you will join the project.


Scott Ryan


Thursday, April 14, 2011

Suppose Obama WAS born in Kenya; then what?

- Scott Ryan

Barack Obama sent top advisor David Plouffe onto ABC's "This Week" to attempt to discredit Donald Trump on the matter of Obama's fight to avoid furnishing an actual birth certificate.

As my friend and scholar I.M. Kane at The Millstone Diaries recently wrote, “Trump knows that he could end up king or kingmaker if he succeeds in exposing the biggest fraud ever perpetuated on the people of the United States.”

I agree 100 percent and would like to add that even if Obama was born in the United States of America, I believe he is –still- the biggest fraud ever perpetrated against the United States by virtue of his conning millions of Dance with the Stars/American Idol consumed droids into believing that he is anything less than a radical communist.

Going back to the disturbing question of The Saboteur’s origins, Trump raises a valid point. It is surreal how he can spend millions of dollars to avoid furnishing this document. Seriously, in ANY CASE, shouldn’t the burden of proof (of origin) be on the person running for the highest position of the most powerful nation in the history of the world? It is beyond Orwellian that tens of millions of people will hand a virtual stranger the key to our entire nuclear arsenal and the most formidable military on the planet without even VERIFYING who the hell he is. That’s a friggin “BEAM ME UP SCOTTY” if I ever heard one and raises the question regarding the existence intelligent life here on this planet, at least in the blue states.

Ask anyone of the droids who voted for him and I GUARANTEE you that 99.9% of them have no idea of the fact that Barack Hussein Obama is America’s first cocaine snorting (or crack smoking) President (by his own surreptitiously published auto-biography), not that most of these degenerates would necessarily care. When I think about it, as the birthplace qualification –has been in our constitution from the beginning and all, is it really that audacious to expect that maybe -whoever- wins a presidential primary should AUTOMATICALLY be required to furnish an ORIGINAL or at least an AUTHENTIC birth certificate? It’s not like we changed our Presidents every quarter for the past 235 years. I think we can make that extra effort.

The fact that “the administration” or should I say “the incessant campaign” sends us guys like that hatchet man on Sunday to make the discrediting rounds on his behalf speaks volumes. This smarmy character David Plouffe reminds me of “Harry Ellis” on the old Die Hard movie (with Bruce Willis). He typifies the type of Chicago style political hack that personifies the Saboteur's administration.

This should be taken seriously. If it should be determined at some point that Obama was born in Kenya and knowingly conspired against the people and the constitution of the United States of America - for all of the legislation promulgated and lawsuits having to be waged that never would have otherwise occurred, he should beyond a shadow of a doubt stand trial for treason.  If convicted, he should suffer the concomitant penalty that always accompanies the crime of treason.

Impeachment would be entirely inadequate for such a crime. And since Obama likes by some stretch to link himself and everything he does to Abraham Lincoln, if convicted, perhaps as a tribute his sentence could be carried out at Fort Mcnair - the site where the penalty of conspiracy was carried out against those convicted as conspirators in President Lincoln’s assassination.

Fort McNair (Lincoln assassination conspirators)

Everything should be conducted by the rule of law and an authentic birth certificate should be subpoenaed.

Sunday, April 10, 2011

John Boehner Must Go
by Scott Ryan
What I’m hearing all over the news is that the “leaders” of the Democrat Party are claiming victory and the Republican Party “leaders” are claiming victory in last week’s short term budget battle.

The fact is that they are both right. They both won. The only losers in this deal are the American people and the Republic for which we stand.

In the short run it was a great achievement for ambitious politicians who fantasize about their place in history. In the long run it will not matter what they did because the way things are going, someone else, Communist China most likely, will be writing the history books; so posterity will scarcely know who they were.

I hear some of the posers on the right as they attempt to put some lipstick on this pig but the more I ruminate on the matter, the more disgusted I become.

I’m tired of being nice. There’s no time for diplomacy.

$38 Billion is significantly less than the $61 Billion target. This amounts to ONE WEEK'S worth of deficit spending.

We're supposed to cut TRILLIONS in order to save this nation from bankruptcy? That notion would be laughable if it were not so tragic.

It is unlikely these three branches of government will cut a single trillion, much less $6 Trillion when the demagogues come out and accuse them of "politicizing" with every attempt.

The White House predicts that the deficit will hit a record $1.6 trillion this year. Combined with the fact that they couldn't even come close to the diminutive target of $61 billion in cuts tells me that rounds 3, 4, 5 & 6 of "quantitative easing" are coming as the Federal Reserve may soon be the only buyer of US Treasuries left as foreign creditors see that these louses have no capacity to reign in this debt.

In light of recent exposés proving the illicit deception of “Planned Parenthood”, there has NEVER been a more auspicious moment in contemporary history to end the odious practice of FORCING American Taxpayers to pay for infanticide. For what compromise did they settle? They have the nerve to come back to their constituents on Saturday and tell us that their achievement was an agreement from the Democrats that they would have a separate measure upon which they would vote to defund Planned Parenthood, knowing they would lose without the leverage they had in this budget. The supposed “victory” would be in the fact that Democrats would then have to “go on record” as supporting this funding! That is utterly contemptible as it is useless. These people are ALREADY on record as supporting it. In fact, they CAMPAIGN on the very notion.

God has given us the chance to destroy these government subsidized alters to Molech, a chance to make a major surge against the abomination and scourge of this nation. And what did John Boehner do? Boehner had victory right in his site and he froze. If we can't abrogate the public funding of this abortion mill at such a time as this, we might as well pack our bags and head for the bunker.

I cautiously supported John Boehner for the first few months as House Speaker and even empathized when he cried in the November elections. I thought his emotions might have been a culmination of patriotism but now I think they were more like the fermentations of the many politicians who preceded him, more about his own achievements as he alluded to his humble beginnings as a waiter at his family tavern in Ohio. It seems the skepticisms of conservatives have been confirmed and as far as I’m concerned, we would be better served by Mr. Boehner if he were to return to his family tavern in Ohio then to serve one more day as House Speaker.

Once more, just like old times, the public servants have put aside their partisan differences, moved on from their treachery and kicked back in comfort as they enjoy themselves at The Masters golf tournament in Augusta, courtesy of their lobbyist patrons - while we the people are once again left to go back to our daily jobs so that we may “service” these miscreants and hope they afford us enough of the crumbs to feed our families.

We the people worked too damned hard this past year to quell the assaults of Obama, Reed & Pelosi. Aside from maybe Senator Jim DeMint, most of these reps did nothing to get elected that compares with the work of the grassroots, patriotic citizenry. WE are the ones who did all of the work, the real public service to win those elections and to change the status quo. What we have witnessed is the fact that the GOP purging has not yet been completed. What we have seen is evidence that we have NO TIME to allow such pansies to continue for one day. I urge you in the reading of this post to get your congressman on the phone this week and make sure they know that if they do not get Boehner out of the speakership now, they will be gone themselves within the next two years. They elect the House Speaker but they must know that WE in effect elect the House Speaker. We need competence and we need it now. We KNOW who the authentic leaders of this party are. Tell your congressman to back Col. Allen West or someone with his fortitude for House Speaker or be gone.

The only way this government will avoid bankruptcy is if the Senate is taken away from Harry Reid and the GOP achieves a super majority to over-ride the Saboteur's veto. But even then, a super majority would only work if the GOP gives leadership to patriotic men and women who have the guts to stand up to the demagoguery that invariably ensues when the sacrament of abortion funding and the avarice for power is challenged.

Regardless of how brisk US Treasury auctions might have been in the last year, the US Government cannot afford to pay the interest on our debt even with interest rates at historic lows. The current acceleration of inflation will cause a demand for higher interest rates from the market. If the federal government has no choice but to keep interest rates at these levels, soon enough the Federal Reserve might be the only buyer left to finance our own debt as the Treasury faces the possibility of "failed auctions".

A catastrophic selloff in Treasuries will come like a cattle stampede, forcing the government to compete with its own instruments trading in the secondary market at much higher levels. Last years auctions mean nothing. When this happens, last week means nothing. There is no time for etiquette and no time for politicians who come running out of the capitol with their tails between their legs claiming “victory”.

It is time to fulfill Col. Allen West’s request to Nancy Pelosi - and Mr. Boehner, “Give me that Damn gavel”.  It is TIME.  It is time for a real leader in the house who understands that "what we do here echos in eternity".  See this video and absorb a demonstration of what a real leader looks like.