“Albert Einstein’s ‘special theory of relativity’, while brilliantly conceived, does not meet the celebrated physicist’s own scientific falsifiability standard. Therefore, by Einsteinian reckoning alone, E = mc2 is a dubious mathematical formula.” – Edward L. Daley
It’s an Obama world.
The US military is spending as much as $150 per gallon of jet fuel from algal sources rather than $2.88 a gallon for conventional jet fuel.
The Washington Times reported:
Last month, a Government Accountability Office report found that the military was spending as much as $150 a gallon on alternative jet fuel derived from algal oil rather than $2.88 a gallon for conventional jet fuel.
“Why should the Defense Department be paying for solar panels? Why should defense be paying for biorefineries? Those are not defense items. We have a Department of Energy that’s supposed to be doing that stuff. The disarming of America is not just what he’s been doing in cuts or delays like the F-35s, but less obvious is what he’s puts in [the defense budget] that we’re spending money on that should be spent on defense as opposed to his agenda.
“Now, [the president’s] true to his agenda, and you may agree with it and that’s fine. I don’t,” Mr. Inhofe said.
Meanwhile, veterans are dying before they can get help from the VA.
The Keystone Pipeline project was expected to create tens of thousands of high paying jobs in the oil industry. The project itself would create 20,000 construction jobs. And the pipeline would bring oil from Canada and North Dakota to refineries in the United States.
The proposed project would have extended from Alberta, Canada to Illinois, transporting approximately 400,000 barrels of crude oil per day. Estimated cost is $1.7 billion.
Democrats are beholden to the radical green movement – the poor and middle class be damned.
Canada pulled the plug on Keystone and will send the oil to Asia.
Watts Up With That reported:
Obama’s inability to make a decision on Keystone has finally yielded a result – Canada has made the decision for him.
The Canadian oil will still be burnt – in Asia, instead of America.
All the jobs and energy security which Canadian oil could have delivered to America, will instead be delivered to Asia.
Rather than purchasing crude from a friendly and allied neighbor, the United States will most likely need to continue its reliance upon hostile sources like Venezuela.
Only a Democrat could make such a dangerous and irresponsible decision for the country.
The Russians are actually making a move against the petrodollar. It appears that they are quite serious about their de-dollarization strategy. The largest natural gas producer on the planet, Gazprom, has signed agreements with some of their biggest customers to switch payments for natural gas from U.S. dollars to euros. And Gazprom would have never done this without the full approval of the Russian government, because the Russian government holds a majority stake in Gazprom. There hasn’t been a word about this from the big mainstream news networks in the United States, but this is huge. When you are talking about Gazprom, you are talking about a company that is absolutely massive. It is one of the largest companies in the entire world and it makes up 8 percent of Russian GDP all by itself. It holds 18 percent of the natural gas reserves of the entire planet, and it is also a very large oil producer. So for Gazprom to make a move like this is extremely significant.
When Barack Obama decided to slap some meaningless economic sanctions on Russia a while back, he probably figured that the world would forget about them after a few news cycles.
But the Russians do not forget, and they certainly do not forgive.
At this point the Russians are turning their back on the United States, and that includes the U.S. dollar.
What you are about to read is absolutely stunning, and yet you have not heard about it from any major U.S. news source. But what Gazprom is now doing has the potential to really shake up the global financial landscape. The following is an excerpt from a news report by the ITAR-TASS news agency…
Gazprom Neft had signed additional agreements with consumers on a possible switch from dollars to euros for payments under contracts, the oil company’s head Alexander Dyukov told a press conference.
“Additional agreements of Gazprom Neft on the possibility to switch contracts from dollars to euros are signed. With Belarus, payments in roubles are agreed on,” he said.
Dyukov said nine of ten consumers had agreed to switch to euros.
And Gazprom is not the only big company in Russia that is moving away from the U.S. dollar.
According to RT, other large Russian corporations are moving to other currencies as well…
Russia will start settling more contracts in Asian currencies, especially the yuan, in order to lessen its dependence on the dollar market, and because of Western-led sanctions that could freeze funds at any moment.
“Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies, and to set up accounts in Asian locations,” Pavel Teplukhin, head of Deutsche Bank in Russia, told the Financial Times, which was published in an article on Sunday.
Diversifying trade accounts from dollars to the Chinese yuan and other Asian currencies such as the Hong Kong dollar and Singapore dollar has been a part of Russia’s pivot towards Asian as tension with Europe and the US remain strained over Russia’s action in Ukraine.
And according to Zero Hedge, “expanding the use of non-dollar currencies” is one of the main things that major Russian banks are working on right now…
Andrei Kostin, chief executive of state bank VTB, said that expanding the use of non-dollar currencies was one of the bank’s “main tasks”. “Given the extent of our bilateral trade with China, developing the use of settlements in roubles and yuan [renminbi] is a priority on the agenda, and so we are working on it now,” he told Russia’s President Vladimir Putin during a briefing. “Since May, we have been carrying out this work.”
“There is nothing wrong with Russia trying to reduce its dependency on the dollar, actually it is an entirely reasonable thing to do,” said the Russia head of another large European bank. He added that Russia’s large exposure to the dollar subjects it to more market volatility in times of crisis. “There is no reason why you have to settle trade you do with Japan in dollars,” he said.
The entire country is undergoing a major financial conversion.
This is just staggering.
Meanwhile, Russians have been pulling money out of U.S. banks at an unprecedented pace…
So in March, without waiting for the sanction spiral to kick in, Russians yanked their moolah out of US banks. Deposits by Russians in US banks suddenly plunged from $21.6 billion to $8.4 billion. They yanked out 61% of their deposits in just one month! They’d learned their lesson in Cyprus the hard way: get your money out while you still can before it gets confiscated.
For those that don’t think that all of this could hurt the U.S. economy or the U.S. financial system, you really need to go back and read my previous article entitled “De-Dollarization: Russia Is On The Verge Of Dealing A Massive Blow To The Petrodollar“. The truth is that the U.S. economic system is extremely dependent on the financial behavior of the rest of the globe.
Because nearly everyone else around the rest of the planet uses our currency to trade with one another, that keeps the value of the U.S. dollar artificially high and it keeps our borrowing costs artificially low.
As Russia abandons the U.S. dollar that will hurt, but if other nations start following suit that could eventually cause a financial avalanche.
What we are witnessing right now is just a turning point.
The effects won’t be felt right away. So don’t expect this to cause financial disaster next week or next month.
But this is definitely another element in the “perfect storm” that is starting to brew for the U.S. economy.
Yes, we have been living in a temporary bubble of false stability for a few years. However, the long-term outlook has not gotten any better. In fact, the long-term trends that are destroying our economic and financial foundations just continue to get even worse.
So enjoy the “good times” while you still can.
They certainly will not last too much longer.
We were warned…
In January 2008 Barack Obama told the San Francisco Chronicle:
“Under my plan of a cap and trade system electricity rates would necessarily skyrocket. Businesses would have to retrofit their operations. That will cost money. They will pass that cost onto consumers.”
He promised that his plan would cause electricity rates to skyrocket.
He wasn’t kidding.
On Monday the Obama administration unveiled the first-ever national limits on carbon emissions from existing power plants.
FOX News reported:
The Obama administration on Monday unveiled the first-ever national limits on carbon emissions from existing power plants, a controversial regulation aimed at fulfilling a key plank of President Obama’s climate change agenda.
The Environmental Protection Agency wants existing plants to cut pollution by 30 percent by 2030, under the plan.
The draft regulation sidesteps Congress, where Obama’s Democratic allies have failed to pass a so-called “cap-and-trade” plan to limit such emissions. The EPA plan will go into effect in June 2016, following a one-year comment period. States will then be responsible for executing the rule with some flexibility.
They are expected to be allowed to require power plants to make changes such as switching from coal to natural gas or enact other programs to reduce demand for electricity and produce more energy from renewable sources.
They also can set up pollution-trading markets as some states already have done to offer more flexibility in how plants cut emissions.
If a state refuses to create a plan, the EPA can make its own.
Obama’s energy policies will disproportionately harm the poor, middle class and minorities.
Real Clear Energy reported:
A study by Eugene M. Trisko for American Coalition for Clean Coal Electricity reviewed the disproportionate impact of higher energy costs on differing income groups from 2001 to 2011.
The study found that the amount of money spent on energy for half of American households that make less than $50,000 almost doubled rising from 12 percent in 2001 to 20 percent in 2011.
Minorities with lower average incomes than white households are disproportionately harmed by rising energy prices.
For example, in 2009, 67 percent of black households and 62 percent of Hispanic households had average incomes below $50,000 in contrast with only 46 percent of white households.
Since minority households have lower incomes than white households, rising energy prices will take a larger share of their family’s disposable income leaving fewer dollars for housing, medicine and clothes.
Obama’s refusal to approve the Keystone XL pipeline, new greenhouse gas regulations from the EPA and discussions of a carbon tax provides more evidence that Obama’s anti-fossil fuel agenda will force energy prices higher.