From Sippican Cottage comes a list of Ten Dreadful Things That Have Become Housing Standards. He is to be congratulated on keeping the list so short.
This week’s essay is Understanding Crude Oil Prices by James D. Hamilton. Don’t be afraid to stretch your brain and don’t be afraid of the math. You need the mental exercise.
The original plan was for me to fly out of state to my boss’ headquarters and spend as much time as I needed learning the ins and outs of how his home-based department operated so that I can work in tandem with them in my remote location. One of the key items on the agenda Click Here to continue reading.
When you see all of the things going wrong around us, it can be hard to remember to be grateful for the things that we still have. But this ruling should remind us that there are many things to be grateful for in America. In many countries, such a ruling would have never been issued.
If you want to know just how ridiculous our agricultural programs are, consider this: for about half a century, we priced milk based on how far the cow was from Eau Claire, Wisconsin. No, I swear, I am not making this up. Apparently, the USDA scientifically determined that Eau Claire was the perfectest place in the entire world to keep cows, and that therefore the farther you were from that fabled city, the harder you must find it to produce milk.
Oil started to go into a trading range on April 23. Saudi Arabia was bringing on 300,000 barrels a day, and the price would have stabilized for a couple of months.
What happened is that we had strikes in the UK and Nigeria that took roughly 380,000 barrels a day out of May supply. To make matters worse, this lack of supply was not spread smoothly through the month. It was bunched up into a couple of weeks, and the effect of those weeks just started to hit. Traders had to pull off shorts and the price zoomed up.
Also, it turned out that Saudi Arabia had lied about when those extra 300,000 barrels a day were coming online. They had announced to the press that production had started the third week of April. Now it looks like the new production really didn’t come online for another 2-3 weeks (if then).
Prices would normally come down in a few weeks as this production started returning to the inventory reports. But you can kiss that good-bye because we have a special situation right now–China and India have been holding off on purchases, and a flood of new demand will be hitting when they get their act together in the next week or two. India: http://timesofindia.indiatimes.com/BPCL_starts_rationing_fuel_supplies/articleshow/3061069.cms. China: http://in.reuters.com/article/asiaCompanyAndMarkets/idINPEK15115620080521.
This has been China’s normal cycle for at least the past year. Foot-dragging then massive buying when the diesel runs out. And now they are burning diesel in power plants to make up for a lack of coal related to the earthquake.
Meanwhile, Russia’s exports are off 3.3% from last year, and existing production has a decline rate somewhere between 4.5% and 8% (and rising).
That started off a back and forth discussion that was very interesting. You should read the whole thread.
This article on Burma from Spiegel should have been essay of the week. But it came out to late and I don’t want to want to wait until next week to bring it to peoples attention. It should be read.
This rant is a useful to reminder why many Jews were so committed to the recreation of Israel.