Hang onto your wallets everybody and turn out the lights as Big Green super lobby looks like it has cleared a major hurdle in an attempt to put more taxpayer money in their clean, green pockets. Big oil eat your hearts out as there is a new green team in town. In what the Wall Street Journal says is one of the most ambitious efforts to re-engineer American social and economic behavior in decades cleared a key congressional panel and opens the door for carbon caps and sharply higher energy prices for every American and American business.
The Waxman-Markey bill is otherwise known as, The American CleanEnergy and Security Act.Dow Jones says it aims to cut emissions roughly 17% below 2005 levels by 2020 and roughly 80% by mid-century. It haswon approval from the House Energy and Commerce Committee on a vote of 33-25 that fell largely along partisan lines. It followed weeks of negotiations between liberal and moderate Democrats over how to soften the measure's impact on consumers and various sectors of the U.S. economy.
Of course they consulted Big Green corporations that once were evil polluters but now have seen the green light especially because they see the chance to put billions of dollars of taxpayer green into their green little coffers. The Wall Street Journal reported that at a White House meeting on Wednesday, Members ofBarack Obama's Economic Recovery Board endorsed the central idea of the 900-plus page measure to cap business energy use and requirethem to buy tradable permits to pollute. The measure could create green jobs in the US while reducing harmful pollution that might be causing global climate change, executives in the group said. They included General Electric Co. Chief executive Jeffery Immelt, who sat next toObama.
Now I know what you are thinking. Why is such a polluter like the CEO of GE and owner of NBC Universal sitting next to the President on this landmark cap and trade photo op? Well Because GE has invested big time in green energy and will reap big time benefits and green taxpayer dollars if the government forces more green energy laws upon us. Now I am not suggesting that Mr. Immelt would ever use his position as the owner of NBC as a vehicle to shill for the Obama administration just because an Obama administration would put money in the pockets of GE. No I would never suggest that. Let's justlook at the line up on NBC andpolitical station MSNBC. Anchors like Chris Matthews, Rachel Maddow would never allow their own political leanings color their interviews and stories. Heavens no! And what about a guy like Keith Olberman?I mean he is so balanced that he makes the rest of the world look unbalancedin comparison. And when all the NBC stations change to the green logo for earth week, it isn't because their parent company stands to gain financially if the government spends billion to create green energy jobs! It is because they care for mother earth. Anyone that would suggest that MSNBC went into the tank for Obama pushing his election so GE could benefit by getting huge taxpayer dollars are just nasty earth haters. Shame on you! And besides, big oil had their day in the sun (assuming you could see it through the smog) and if they wanted another President looking out for their interest they had enough money to buy their own network.
Nowif the economy does not bounce back this cap and trade may cost Americans more than they think. Due to the slowing global economy the International energy agency reported that global electricity consumption will fall for the first time since 1945. Slow global growth has reducedconsumption and the billions of people on this globe that do not have electricity will have to wait longer for the basic comforts oflife that we take for granted.
For oil the realization that the UK debt rating is on the verge of falling from triple AAAand fears that the US might someday soon be in the same boat made for a wild day in currencies and ultimately for oil yesterday. A bad bond auction raised fears that the US government will have a hard time dumping all the paper they plan to release into the market place. These worries sank the dollar to new lows for the year and drove oil and gold higher. Gold higher than oil as there are still fears that demand will stay weak. Let's face it, the economy seems to be propped up on drugs and that drug is printing more money. At some point we will have to come off that drug and it is not going to be pretty!
Have a great three day weekendand take some time to remember what it is all about! Say a prayer for those that gave all in the defense of our freedoms and liberties! God bless them and God bless America.
We're long July crude on the rollover from apprx 5959 - raise stop to stop5600.
We're long July heatingoilfromapprx 15645 - stop at 15000.
Buy July RBOBat16800 -stop 15900.
We're longJuly natural gas fromapprx 390 -stop 330.
The Dan Flynn Corn & Ethanol Report
Friday May 22nd 2009
Good Morning !
Happy Memorial Day !
This weekend we celebrate all the soft spoken souls who defended our freedoms with corage and valor !
And stand out as a beacon of light to Liberty ! God Bless !
The July Corn settled5 1/4 cents higher in last nights action putting the contact at 429 1/4.
The range was 430 1/4 to 423 1/2.
To trade this market you must stay focused on weather Sock Market and U.S. Dollar to sustain any direction.
On the Energy Front I predict we will follow a seasonal rally. Nothing else changes.
Keep monitoring U.S. Dollar, Gold and the stocks. Have a Great Weekend !
And don't forget to take a moment at this weekends barbecue and remember the brave Men & Woman who gave us the right to celebrate their memory !