Malcog is back

After a long hiatus, the malcog has returned. So to start things out, watch the video.  The Neobama.  He is not the One!  Here’s an interesting item. Man calls 911 after Subway left sauce off sandwich. Wow.  What an idea.  I should have thought of doing that when my blog on blogger wouldn’t work and no one from blogger would respond to my pleas for help.  So some of the Democratic talking points with regard to Drilling Here Drilling Now,  is that that it won’t really do much to lower the price and we won’t see any oil for 7-10 years.  Well take a look at this;

A recent study by economists Param Silvapulle and Imad Moosaof Monash University in Australia found strong evidence of what is called bidirectional causality. Future prices and spot prices are inextricably linked.

Too Obvious

How strong is the case? My American Enterprise Institute colleague, former U.S. House Speaker Newt Gingrich, has been a tireless advocate of a more rational energy policy that allows for more drilling.

In a recent post at his influential blog, Gingrich noted that the top academic energy journal, aptly named, “The Energy Journal,” recently rejected a study by economists Morris Coats and Gary Pecquet of Nicholls State University in Louisiana that found that higher production in the future would reduce prices today.

The study, Gingrich reported, wasn’t rejected because it lacked academic merit. It was rejected because the finding was so well known. James Smith, the impeccably credentialed editor of The Energy Journal described it this way to the unfortunate authors:

“Basically, your main result (the present impact of an anticipated future supply change) is already known to economists (although perhaps not to the Democratic Policy Committee). It is our policy to publish only original research that adds significantly to the body of received knowledge regarding energy markets and policy.” Read the whole thing.

So even if we don’t see oil right away, the decsion to drill will lower the price.  But, hey, let’s just be happy with the Neobama plan even though it won’t affect the price and won’t yield much in way of future supply.  See Powerline  Obama Doubles Down.

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