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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (24984)	6/29/2008 1:06:43 AM
From: SiouxPal	Read Replies (2) \| Respond to of 149317

I sell high alloy metal products among other things. My costs have about doubled in 18 months among most metals.

To: koan who wrote (24984)	6/29/2008 12:32:06 PM
From: tejek	Read Replies (1) \| Respond to of 149317

As mentioned I make my living as a trader. Why I am on SI. Krugman actually refutes the whole issue of speculation in oil by comparing it to the increasing price of iron ore. ;-) And the point is that Congress has to stop coming up with strawmen and instead start working to solve the problem.

To: koan who wrote (24984)	6/29/2008 12:33:57 PM
From: tejek	Read Replies (1) \| Respond to of 149317

Oil and Inflation Published: June 29, 2008 This month, Ben Bernanke, the Federal Reserve chairman, broke from the usually banal official pronouncements about the dollar to talk bluntly about the risks of inflation. He told an international conference that a weakening dollar had caused an “unwelcome rise” in inflation and pledged to guard against such dangers. Until this recent round of comments — which other Fed officials have now joined — the Fed had focused on the turmoil in the financial markets and slowing growth, not rising prices. With the markets relatively calm during most of June, it apparently felt freer to raise warnings about inflation. The Fed’s decision Wednesday to hold interest rates steady — after a string of cuts to stabilize financial markets and support the economy — underscored its growing concern about prices. Then came Thursday and Friday. The stock market plunged into bear market territory, leaving no doubt that the credit crunch persists and the economy is still very fragile. At the same time, oil prices surged, sharply increasing inflationary pressure. The Fed would have preferred to deal with the threats of recession and inflation sequentially. But it does not have that luxury. The Fed is in a bind. If it keeps rates low and loans plentiful to combat a recession, inflation could worsen. If it raises rates and tightens the money spigot to fight inflation, the downturn could be deepened and prolonged. History may not be a reliable guide. It is easy — but not necessarily helpful — to draw analogies to eras like the stagflationary 1970s. Then, high prices led to higher wages and the dreaded wage-price spiral. Raising interest rates increased unemployment and slowed wage growth, choking inflation. But today, wages are barely budging, even as prices go up. Rate hikes to fight today’s inflation — which stem from commodity prices, not wages — may not be the fix they once were. We don’t know how the Fed is going to get out of this bind. In the long run, however, the bigger challenge is not the Fed’s. Policy makers must come up with strategies to prevent the recession-and-inflation problem from happening time and again. Foremost would be a systematic plan for reducing the nation’s dependence on oil. From this perspective, high oil prices are actually a good thing — cutting use and spurring the development of alternative energy — but there must be help for the most hard-hit Americans, like lower-income workers. The country first saw how high oil prices can wreak economic havoc with the oil shocks of the 1970s. Congress and presidents have failed to reduce America’s vulnerability by reducing its dependency. The Fed will have to feel its way through the current crisis. But the next president and Congress will have to tackle the oil problem once and for all. nytimes.com

To: koan who wrote (24984)	6/29/2008 12:36:35 PM
From: tejek	Read Replies (1) \| Respond to of 149317

Of course, a big part of the problem is the GOP. Senate Blocks Renewable Incentives Bill The U.S. Senate failed to advance a bill that would have extended the tax credits for various types of renewable energy businesses. by: Ucilia Wang June 10, 2008 A vote by the U.S. Senate Tuesday nixed another attempt by the renewable energy industry to pass a long-awaited incentive package. By a vote of 50-44, the Senate stopped the Renewable Energy and Job Creation Act of 2008 from advancing to the floor for consideration. The bill needed 60 votes to stay alive. The bill, H.R. 6049, would have extended a series of production and investment tax credits that are set to expire at the end of the year. The multi-year incentives have helped fuel renewable energy research and commercialization. The bill was the latest attempt by industry leaders and supporters to keep the incentive program going (see Solar Industry’s Five-Step Plan, Solar Sharpens Weapons for Incentive Battle and Senate Rejects Green Incentives to Pass Energy Bill). The House passed its version by a 263-160 vote on May 21. Republicans and Democrats again couldn’t agree on the extent of the various incentives. The bill would have extended the tax credits from one year – in the case of wind production – to six years for solar investment. The Senate bill also would have provided tax relief for carbon dioxide reduction, biofuel and plug-in electric car projects. The Solar Energy Industries Association (SEIA), which has worked on several previous legislation to get extend the incentive program, plans to try again in the next few weeks, said Monique Hanis, a spokeswoman for SEIA. “There is a tremendous bi-partisan support for solar and renewable energy, research and development tax credits and other pieces of the bill,” Hanis said. If necessary, the association will push for a bill that would extend the current incentives for one year. greentechmedia.com