http://blog.gregnews.com/

This comes from an article regarding the trial of Salim Hamdan. The point has been argued before, but not really as an admission from a member or al Qaeda:

In advance of attacks, Mr. [Ali] Soufan [a top counterterrorism investigator] said, Mr. Hamdan would often be alerted to prepare vehicles for a rapid move, in case of an American retaliation. He added that Mr. Hamdan came to believe that Washington's failure to launch massive retaliations after the 1998 attacks on U.S. embassies in Africa and the 2000 Cole bombing emboldened Mr. bin Laden. The al Qaeda leader believed the U.S. would never send ground troops to pursue him in Afghanistan, Mr. Soufan said.
Thanks, Clinton administration! Bin Laden said it himself, people follow a strong horse over a weak horse. And, in the late 1990s leading up to 9-11-2001, Bin Laden clearly saw himself as the strong horse, especially because of the lack of a strong response by the US government again and again during a series of brazen attacks throughout the 1990s.

After the 2000 USS Cole bombing, key Clinton figures met to discuss a response to the attack. The meeting included Secretary of Defense William Cohen, Secretary of State Madeleine Albright, CIA Director George Tenet, Richard Clarke, who was basically the counterterrorism czar, and Attorney General Janet Reno. Richard Clarke was the only Clinton official in that meeting who urged a strong military response. The others demanded more "proof," which is difficult when the perpetrator incinerated himself in the attack, or fretted over our image as strongman before the Muslim community, or, in Janet Reno's case, argued that a military response against Bin Laden's Afghanistan camps might violate international law -- as though a country has no right to bomb the training camps in another country (Afghanistan) ruled by an internationally-unrecognized autocracy (The Taliban) that produce terrorists (Bin Laden) who openly brag about attacking that country.

Indeed, in Richard Miniter's book "Losing Bin Laden," he related an exasperated CIA official, Michael Sheehan, asking of Clarke: "What's it going to take to get them [the Clinton administration] to hit al Qaeda in Afghanistan? Does al Qaeda have to attack the Pentagon?"

Apparently so. One can argue Bush's incompetence prior to Gen. Petraeus (historical note -- it took Abraham Lincoln eight tries with seven generals to find his savior general: Irvin McDowell, George McClellan, John Pope, McClellan again, Ambrose Burnside, Joe Hooker, George Meade, Ulysses S. Grant), but one cannot argue with facts. Everyone thought the US would certainly be struck again by terrorists after 9-11. Nobody would have predicted 7 years straight without it. Beyond our technological advantages finally being utilized (what the far left mistakenly terms "domestic spying") it's hard to argue that our strong military responses in Afghanistan and Iraq have not given al Qaeda second thought about their tactics, even as they commit brazen acts of violence against Europe, which never replies with a military response.

And so, one wonders should a President Obama take control, will the foolish over-lawyered hand-wringing on our international image, dealing with terrorism strictly as a law enforcement issue but never as an issue of national defense, etc., simply bring us back to the Clinton era, when we hamstrung our own intelligence and investigative personnel to the point that terrorists struck us at home with ease?

Labels: 9-11, bin Laden, Clinton, military, terrorism, war on terror

Great letter to the WSJ. I love the comment on our "fourth branch" of government.

"The Lawnmower Men" (Review & Outlook, July 19) proves the point that we no longer have only three branches of government. To the executive, legislative and judicial branches we have added bureaucracy. There are now a myriad of government agencies which have a say in how we may live our lives, and none of the people who run or staff these red-tape factories can be held accountable to the people of the nation through any electoral process.

So the Environmental Protection Agency wants to regulate my lawnmower and measure "grams per kilogram of cuttings"? This is the U.S. and here we measure in ounces and pounds; granted illegal drug dealers might not have a problem with this metric nonsense. Is the EPA going to say I can't cut my grass until it reaches a certain height in order to achieve the desired measurements? Will there be an extra tax on foods that tend to create more "emissions"? How about a tax credit for Bean-o? How about they just leave us alone.

We could solve the global energy crisis by hooking up generators to the founding fathers' graves. They should be spinning fast enough to produce enough electricity to fuel the whole country. If they were alive, however, I think I know what they would say about this proposal and all of the other rules dumped upon us: "No regulation without representation!" Though if this bureaucratic trend continues, we might go back to: "Give me liberty or give me death!"

Beth Halgren
Eudora, Kan.

Labels: climate, energy, environment as religion, global warming, taxes

Even conservative estimates by the Congressional Budget Office say the cost for this bailout will run to $41.7 billion, with $16.8 billion offset by higher taxes. No one has any idea of the real cost. The most expensive provision gives the Treasury temporary authority to pour money into Fannie Mae and Freddie Mac. The CBO says this could cost $100 billion, or it could cost "nothing." So it threw a dart at the wall and assigned a $25 billion price tag to the Fan and Fred bailout.

Likewise, the bill's $300 billion to refinance and insure distressed loans through the Federal Housing Administration will supposedly cost just a few billion dollars. That assumes few homeowners and lenders will sign up for the program because lenders will have to take a 10% haircut to be eligible. If no one needs this program, why is it there? If lenders do take advantage, they're bound to dump their worst loans on the feds. So as with the Fan and Fred bailout, the FHA guarantee will be either superfluous or much more expensive than we're led to believe.

Alongside these big-ticket items, we suppose the $4 billion tax credit for first-time home buyers, or the $4 billion in "community development" pork grants, or the $180 million for housing counseling are merely routine outrages.

On the other hand, the kid-glove treatment of Fannie Mae and Freddie Mac is very much worth worrying about. On the floor of the House yesterday, Democrats argued that this bill was the least Congress could do "for the people," given the way the government had "helped" Bear Stearns. The cost borne by Bear Stearns was having its shareholders all but wiped out and half its employees pink-slipped. Countrywide was likewise sold at a fire sale price. Not so these two government-chartered giants.

Fannie and Freddie may well be too big to fail, as Treasury Secretary Hank Paulson keeps reminding us. That is true in large part because they were allowed -- no, encouraged -- to grow like Topsy while Congress shielded them from oversight.

-- Wall Street Journal

Labels: CBO, Congress, Countrywide Financial, democrats, Economics, taxes

Along the lines of my post yesterday about the media's shameless backing of Barack Obama, here's another example:

A Top Obama Fund-Raiser Had Ties to Failed Bank
By JOHN R. EMSHWILLER
July 21, 2008; Wall Street Journal Page A10

For the Pritzker family of Chicago, the 2001 collapse of subprime-mortgage lender Superior Bank was an embarrassing failure in a corner of their giant business empire.
Billionaire Penny Pritzker helped run Hinsdale, Ill.-based Superior, overseeing her family's 50% ownership stake. She now serves as Barack Obama's national campaign-finance chairwoman, which means her banking past could prove to be an embarrassment to her -- and perhaps to the campaign.

Superior was seized in 2001 and later closed by federal regulators. Government investigators and consumer advocates have contended that Superior engaged in unsound financial activities and predatory lending practices. Ms. Pritzker, a longtime friend and supporter of Sen. Obama, served for a time as Superior's chairman, and later sat on the board of its holding company.

Sen. Obama has long criticized predatory subprime mortgage lenders and urged strong actions against them.
Just another case of Obama's "Do as I say, not as I do" campaign. But I noticed -- other than this story only appearing in the WSJ, not saturated daily in the NYT and every 10 minutes on CNN -- that this was run on page A10.

Dollars to donuts, had Obama been Republican you can bet this would have made page 1.

Labels: 2008, corruption, media bias, Obama

Great editorial by Bret Stephens concerning Al Gore's "Kennedyesque" challenge that the United States be "100% zero-carbon electricity in 10 years." The simple fact is it was far more feasible to put a man on the moon than attain Gore's goal, especially when Gore himself opposes both nuclear and hydroelectric power.

In 1995, the U.S. got about 2.2% of its net electricity generation from "renewable" sources, according to the Energy Information Administration. By 2000, the last full year of the Clinton administration, that percentage had dropped to 2.1%. By contrast, the combined share of coal, petroleum and natural gas rose to 70% from 68% during the same time frame.

Now the share of renewables is up slightly, to about 2.3% as of 2006 (the latest year for which the EIA provides figures). The EIA thinks the use of renewables (minus hydropower) could rise to 201 billion kilowatt hours per year in 2018 from the current 65 billion. But the EIA also projects total net generation in 2018 to be 4.4 trillion kilowatt hours per year. That would put the total share of renewables at just over four percent of our electricity needs.

Mr. Gore's argument would be helped if he were also willing to propose huge investments in nuclear power, which emits no carbon dioxide and currently supplies about one-fifth of U.S. electricity needs, and about three-quarters of France's. Britain has just approved eight new nuclear plants, and the German government of Angela Merkel is working to do away with a plan by the previous government to go nuclear-free.

But Mr. Gore makes no mention of nuclear power in his speech, nor of the equally carbon-free hydroelectric power. These are proven technologies -- and useful reminders of what happens when environmentalists get what they wished for.

Mr. Gore's case would also be helped if our experience of renewable sources were a positive one. It isn't. In his useful book "Gusher of Lies," Robert Bryce notes that "in July 2006, wind turbines in California produced power at only about 10% of their capacity; in Texas, one of the most promising states for wind energy, the windmills produced electricity at about 17% of their rated capacity." Like wind power, solar power also suffers from the problem of intermittency, which means that it has to be backed up by conventional sources in order to avoid disruptions. This is especially true of hot summers when the wind doesn't blow and cold winters when the sun doesn't shine.

And then there are biofuels, whose recent vogue, the World Bank believes, may have been responsible for up to 75% of the recent rise in world food prices. Save the planet; starve the poor.

None of this seems to trouble Mr. Gore. He thinks that simply by declaring an emergency he can help achieve Stakhanovite results. He might recall what the Stakhanovite myth (about the man who mined 14 times his quota of coal in six hours) actually did to the Soviet economy.

Labels: climate, energy, global warming, Gore

The New York Times has declined to publish an op-ed by Presidential nominee Sen. John McCain, Drudge reports. Why? According to the explanation by the NYT Op-Ed editor, David "Chicken" Shipley, it just wasn't Obama enough. Chicken Shipley said that if McCain would rewrite it so that it "mirrors Senator Obama's piece" - yes, no joke, he actually wrote that - the NYT would be pleased to run it.

Why refuse to run it? Because in the marketplace of free ideas the left routinely gets it's collective butt kicked. And they know it.

This egregious case of leftward media slant, denying any evidence of victory in Iraq which McCain cites in his op-ed, is proof of that. They simply can't compete. Worse, the NYT and their Copperhead ilk spent so much ink and whining promoting defeatism in Iraq for 5 years that rather then admit wrong and premature commitment to defeat they just avoid the facts on the ground in Iraq. Period.

They redefine diversity, inclusiveness, open-mindedness, enlightenment, intellectualism, all the other leftist buzzwords, etc., to mean that they'll just refuse to acknowledge any opinion that doesn't neatly fit their "progressive" point of view. Well, I'm laughing at their superior intellect.

Because, for conservatives, having the New York Times refuse to publish your opinion is a badge of honor. Shipley, such the schmuck that he is, will probably help McCain by promoting his op-ed, and getting more people to read it, than would have happened had they just run the piece. What a moron.

Here's the McCain op-ed which the NYT was too scared to run.

In January 2007, when General David Petraeus took command in Iraq, he called the situation "hard" but not "hopeless." Today, 18 months later, violence has fallen by up to 80% to the lowest levels in four years, and Sunni and Shiite terrorists are reeling from a string of defeats. The situation now is full of hope, but considerable hard work remains to consolidate our fragile gains.

Progress has been due primarily to an increase in the number of troops and a change in their strategy. I was an early advocate of the surge at a time when it had few supporters in Washington. Senator Barack Obama was an equally vocal opponent. "I am not persuaded that 20,000 additional troops in Iraq is going to solve the sectarian violence there," he said on January 10, 2007. "In fact, I think it will do the reverse."

Now Senator Obama has been forced to acknowledge that "our troops have performed brilliantly in lowering the level of violence." But he still denies that any political progress has resulted.

Perhaps he is unaware that the U.S. Embassy in Baghdad has recently certified that, as one news article put it, "Iraq has met all but three of 18 original benchmarks set by Congress last year to measure security, political and economic progress." Even more heartening has been progress that's not measured by the benchmarks. More than 90,000 Iraqis, many of them Sunnis who once fought against the government, have signed up as Sons of Iraq to fight against the terrorists. Nor do they measure Prime Minister Nouri al Maliki's new-found willingness to crack down on Shiite extremists in Basra and Sadr City—actions that have done much to dispel suspicions of sectarianism.

The success of the surge has not changed Senator Obama's determination to pull out all of our combat troops. All that has changed is his rationale. In a New York Times op-ed and a speech this week, he offered his "plan for Iraq" in advance of his first "fact finding" trip to that country in more than three years. It consisted of the same old proposal to pull all of our troops out within 16 months. In 2007 he wanted to withdraw because he thought the war was lost. If we had taken his advice, it would have been. Now he wants to withdraw because he thinks Iraqis no longer need our assistance.

To make this point, he mangles the evidence. He makes it sound as if Prime Minister Maliki has endorsed the Obama timetable, when all he has said is that he would like a plan for the eventual withdrawal of U.S. troops at some unspecified point in the future.

Senator Obama is also misleading on the Iraqi military's readiness. The Iraqi Army will be equipped and trained by the middle of next year, but this does not, as Senator Obama suggests, mean that they will then be ready to secure their country without a good deal of help. The Iraqi Air Force, for one, still lags behind, and no modern army can operate without air cover. The Iraqis are also still learning how to conduct planning, logistics, command and control, communications, and other complicated functions needed to support frontline troops.

No one favors a permanent U.S. presence, as Senator Obama charges. A partial withdrawal has already occurred with the departure of five "surge" brigades, and more withdrawals can take place as the security situation improves. As we draw down in Iraq, we can beef up our presence on other battlefields, such as Afghanistan, without fear of leaving a failed state behind. I have said that I expect to welcome home most of our troops from Iraq by the end of my first term in office, in 2013.

But I have also said that any draw-downs must be based on a realistic assessment of conditions on the ground, not on an artificial timetable crafted for domestic political reasons. This is the crux of my disagreement with Senator Obama.

Senator Obama has said that he would consult our commanders on the ground and Iraqi leaders, but he did no such thing before releasing his "plan for Iraq." Perhaps that's because he doesn't want to hear what they have to say. During the course of eight visits to Iraq, I have heard many times from our troops what Major General Jeffrey Hammond, commander of coalition forces in Baghdad, recently said: that leaving based on a timetable would be "very dangerous."

The danger is that extremists supported by Al Qaeda and Iran could stage a comeback, as they have in the past when we've had too few troops in Iraq. Senator Obama seems to have learned nothing from recent history. I find it ironic that he is emulating the worst mistake of the Bush administration by waving the "Mission Accomplished" banner prematurely.

I am also dismayed that he never talks about winning the war—only of ending it. But if we don't win the war, our enemies will. A triumph for the terrorists would be a disaster for us. That is something I will not allow to happen as president. Instead I will continue implementing a proven counterinsurgency strategy not only in Iraq but also in Afghanistan with the goal of creating stable, secure, self-sustaining democratic allies.

Labels: 2008, Iraq, mccain, media bias, NYT, Obama

Washington is teeing up "the rich" for a big tax hike next year, as a way to make them "pay their fair share." Well, the latest IRS data have arrived on who paid what share of income taxes in 2006, and it's going to be hard for the rich to pay any more than they already do. The data show that the 2003 Bush tax cuts caused what may be the biggest increase in tax payments by the rich in American history.

The nearby chart shows that the top 1% of taxpayers, those who earn above $388,806, paid 40% of all income taxes in 2006, the highest share in at least 40 years. The top 10% in income, those earning more than $108,904, paid 71%. Barack Obama says he's going to cut taxes for those at the bottom, but that's also going to be a challenge because Americans with an income below the median paid a record low 2.9% of all income taxes, while the top 50% paid 97.1%. Perhaps he thinks half the country should pay all the taxes to support the other half.

Aha, we are told: The rich paid more taxes because they made a greater share of the money. That is true. The top 1% earned 22% of all reported income. But they also paid a share of taxes not far from double their share of income. In other words, the tax code is already steeply progressive.

We also know from income mobility data that a very large percentage in the top 1% are "new rich," not inheritors of fortunes. There is rapid turnover in the ranks of the highest income earners, so much so that people who started in the top 1% of income in the 1980s and 1990s suffered the largest declines in earnings of any income group over the subsequent decade, according to Treasury Department studies of actual tax returns. It's hard to stay king of the hill in America for long.

The most amazing part of this story is the leap in the number of Americans who declared adjusted gross income of more than $1 million from 2003 to 2006. The ranks of U.S. millionaires nearly doubled to 354,000 from 181,000 in a mere three years after the tax cuts.

This is precisely what supply-siders predicted would happen with lower tax rates on capital gains, dividends and income. The economy and earnings would grow faster, which they did; investors would declare more capital gains and companies would pay out more dividends, which they did; the rich would invest less in tax shelters at lower tax rates, so their tax payments would rise, which did happen.

The idea that this has been a giveaway to the rich is a figment of the left's imagination. Taxes paid by millionaire households more than doubled to $274 billion in 2006 from $136 billion in 2003. No President has ever plied more money from the rich than George W. Bush did with his 2003 tax cuts. These tax payments from the rich explain the very rapid reduction in the budget deficit to 1.9% of GDP in 2006 from 3.5% in 2003.

This year, thanks to the credit mess and slower growth, taxes paid by the rich may fall and the deficit will rise. (The nonstimulating tax rebates will also hurt the deficit.) Mr. Obama proposes to close this deficit by raising tax rates on the rich to their highest levels since the late 1970s. The very groups like the Congressional Budget Office and Tax Policy Center that wrongly predicted that the 2003 investment tax cuts would cost about $1 trillion in lost revenue are now saying that repealing those tax cuts would gain similar amounts. We'll wager it'd gain a lot less.

If Mr. Obama does succeed in raising tax rates on the rich, we'd also wager that the rich share of tax payments would fall. The last time tax rates were as high as the Senator wants them -- the Carter years -- the rich paid only 19% of all income taxes, half of the 40% share they pay today. Why? Because they either worked less, earned less, or they found ways to shelter income from taxes so it was never reported to the IRS as income.

The way to soak the rich is with low tax rates, and last week's IRS data provide more powerful validation of that proposition.

-- Wall Street Journal

Labels: Economics, tax cuts, taxes

Labels: just cool stuff

Barack Obama purges Web site critique of surge in Iraq
BY JAMES GORDON MEEK
DAILY NEWS WASHINGTON BUREAU

Monday, July 14th 2008, 8:10 PM

WASHINGTON - Barack Obama's campaign scrubbed his presidential Web site over the weekend to remove criticism of the U.S. troop "surge" in Iraq, the Daily News has learned.

The presumed Democratic nominee replaced his Iraq issue Web page, which had described the surge as a "problem" that had barely reduced violence.

"The surge is not working," Obama's old plan stated, citing a lack of Iraqi political cooperation but crediting Sunni sheiks - not U.S. military muscle - for quelling violence in Anbar Province.

The News reported Sunday that insurgent attacks have fallen to the fewest since March 2004.

Obama's campaign posted a new Iraq plan Sunday night, which cites an "improved security situation" paid for with the blood of U.S. troops since the surge began in February 2007.

It praises G.I.s' "hard work, improved counterinsurgency tactics and enormous sacrifice."

Campaign aide Wendy Morigi said Obama is "not softening his criticism of the surge. We regularly update the Web site to reflect changes in current events."

GOP rival John McCain zinged Obama as a flip-flopper. "The major point here is that Sen. Obama refuses to acknowledge that he was wrong," said McCain, adding that Obama "refuses to acknowledge that it [the surge] is succeeding."

Labels: 2008, Iraq, mccain, Obama, Petraeus

The following regards Barack Obama's argument that Iraq is not the central front on the war on terror, rather that Afghanistan/Pakistan is (more to that in a moment).

Of course, the very first problem with this is that Osama bin Laden and other al Qaeda leadership have plainly stated on several occasions prior to this that Iraq is indeed the central front on the war on terror.

The next problem for Obama, is that those experts on the subject, including those experts who are endorsing Obama, likewise believe that Iraq is the central front for the war on terror.

The following I took from the blogger Mad Irish:

All: Please note that Lee Hamilton, who introduced Sen. Obama at his speech in Washington today, disagrees with Sen. Obama on at least two central issues addressed in his speech today. Specifically, Sen. Obama today denied that Iraq has ever been a “central front in the war on terror,” despite the fact that Hamilton described Iraq as “a central front in the war on terror” in testimony to the Senate Armed Services Committee while he was co-chairing the Iraq Study Group. Further, three months ago in April 2008, Hamilton said he opposes “target dates” for withdrawal in Iraq -- something Obama is clearly continuing to embrace today with his 16-month timetable:


Obama vs. Hamilton On Iraq As “A Central Front In The War On Terror”

Obama Today: "In fact – as should have been apparent to President Bush and Senator McCain – the central front in the war on terror is not Iraq, and it never was." (Barack Obama, Remarks, Washington, D.C., 7/15/08)

In December 2006, Hamilton Told The Senate Armed Services Committee That Iraq Was “A Central Front In The War On Terror.” Sen. Lindsey Graham (R-SC): “If you asked the 10 members of the commission the question: “Is Iraq the central battlefront in the war on terror,” what answer would you have received?” … Hamilton: ‘I would strike the word “the” and use “a.” It is a central front. Look, al Qaeda today is a important part of the violence, but not as important as sectarian violence. It is a central front in the war on terror, but to make it THE central front overstates it.” (Lee Hamilton, Committee On The Armed Services, U.S. Senate, Testimony, 12/7/06)

Obama vs. Hamilton On Timetables For Iraq Withdrawal

Obama Today Attacked Those Who Oppose Timetables, And Offered His Own 16-Month Timetable: “We Can Safely Redeploy Our Combat Brigades At A Pace That Would Remove Them In 16 Months.” “George Bush and John McCain don’t have a strategy for success in Iraq – they have a strategy for staying in Iraq. They said we couldn’t leave when violence was up, they say we can’t leave when violence is down. They refuse to press the Iraqis to make tough choices, and they label any timetable to redeploy our troops “surrender,” even though we would be turning Iraq over to a sovereign Iraqi government – not to a terrorist enemy. Theirs is an endless focus on tactics inside Iraq, with no consideration of our strategy to face threats beyond Iraq’s borders. … We can safely redeploy our combat brigades at a pace that would remove them in 16 months.” (Barack Obama, Remarks, Washington, D.C., 7/15/08)

Hamilton In April 2008: "I'm not a great fan, incidentally, of target dates in foreign policy as a rule and in Iraq specifically." (MSNBC's "MSNBC Live," 4/11/08)
It's bad enough Barack Obama is attempting to revise history by acting as though he's always been an advocate of the Petraeus Surge (he has, for instance, now scrubbed his campaign website of all comments that were negative regarding the Surge), but that he's dictating policy and offering a plan on Iraq before actually traveling to Iraq and talking to General Petraeus is not just counterproductive but a foolish campaign move too.

A final point regarding the Obama camp's claim that Iraq is not the central front on terror, or only became the central front on terror after the US invaded Iraq -- FLYPAPER.

It was smart strategy to lure our enemies into the open from out of the shadows of Saudi Arabia or the caves of Afghanistan, or mosques in Europe for that matter.

If Democrats are going to get all queasy about 4,000 dead in Iraq, where the terrain is flat and far more friendly to US technology, how would they ever stomach a war in the miserable terrain of the Hindu Kush mountains, where our advantages like helicopter warfare would become neutralized due to climate and terrain?

Labels: 2008, Afghanistan, Iraq, mccain, Obama, Petraeus, war on terror

GUANTANAMO BAY, Cuba, July 15 -- Salim Ahmed Hamdan, an alleged al-Qaeda driver who faces a historic military trial next week, testified Tuesday that a female interrogator elicited information from him using sexually suggestive behavior that he called "improper."

Hamdan, a former driver for Osama bin Laden who is accused in a terrorism conspiracy, told a military court that during questioning in 2002, a female interrogator "came close to me, she came very close, with her whole body towards me. I couldn't do anything. I was afraid of the soldiers."

"Did she touch your thigh?" asked Hamdan's attorney Charles Swift.

"Yes. . . . I said to her, 'What do you want?' " Hamdan said at a pretrial hearing. "She said, 'I want you to answer all of my questions.' "

"Did you answer all of her questions after that?" Swift asked. Hamdan said he did.
Talk about PC run amok. And -- beyond the point that apparently it worked -- are we now going to classify "suggestive behavior" as torture?

In fact, we have no idea as to the context of the "improper" brush of Hamdan's leg, which could have been completely innocent and a total fantasy by Hamdan -- and I can't believe we've really gotten to this point where such trivial matters become "news" -- but one can bet that for a true-believing Islamofascist like Hamdan the very fact that the US military had the audacity to send a female interrogator is, to him and those like him, "improper."

So we're now at the point where rather than ridiculing this sexist, gynophobic, oppressive and illiberal Islamic fundamentalist culture we will instead respect it and submit to it all in the name of cultural awareness, diversity and political correctness. Absolutely bassackwards ridiculous!

Labels: guantanamo, intelligence, interrogation, Islamic extremism, war on terror

Here's Jonah Goldberg on the anti-speculation frenzy driving the populist crowd:

Never mind that there’s no evidence “speculators” — i.e. commodity traders — are doing anything to increase the price of oil. They aren’t hoarding it. No one’s cornering the market. The speculators make money when the price goes down, and they make money when it goes up. In short, they don’t care if oil prices are high or low as long as they guessed correctly.

And that may be the most infuriating part of all this. The speculators don’t want high oil prices, but Washington does.
Read the rest.

Labels: Economics, energy, Oil

For the life of me, I'm trying to understand what Israel had to gain in this "prisoner exchange." To be a prisoner exchange, don't all the parties in question have to still be alive? It was really a remains exchange where Israel has to turn over a breathing, living terrorist to boot.

ROSH HANIKRA, Israel (CNN) -- Israeli forensic experts have begun trying to identify the remains of what are believed to be two captured Israeli soldiers, the Israel Defense Forces said.

Hezbollah officials handed over two black coffins to Red Cross officials, who will carry them over the border to Israel.

If forensics experts determine that the remains are those of Staff Sgt. Ehud Goldwasser and Sgt. First Class Eldad Regev, Israel will turn over to Hezbollah five Lebanese prisoners -- including convicted murderer Samir Kuntar, whom many Israelis consider the embodiment of evil.

Israel is also returning the remains of 199 fighters from Lebanon who Israel says were killed in clashes over the years. Nineteen coffins were being transferred onto Red Cross trucks and sent to the Lebanese side, the Israeli military said.

The forensic determination is expected to take several hours.

The Israel Defense Forces said it would not comment on the transfer until it was complete.

"The IDF has yet to complete the process of identifying the soldiers' remains and will therefore make no comments about the process conclusions until those are completed and the families of the soldiers are notified," it said in a statement. Watch as coffins are delivered »

The transfer began shortly before 10 a.m. Israel time (3 a.m. ET) at the Rosh Hanikra crossing in western Galilee, which the army had declared a closed military zone a day earlier.

The swap caps a tireless campaign by the soldiers' families to bring them home. It also ends decades of resistance by the Israeli government, which wanted to use Kuntar as a bargaining chip to obtain information about a missing airman whose plane crashed in Lebanon in 1986.

The Shiite militia Hezbollah cast the swap as a victory for all Lebanese, with one official calling it "an official admission of defeat."

...A member of the Palestine Liberation Front, Kuntar led a group of four men who entered Israel from Lebanon by boat in 1979. They killed a police officer who came across them. Then they took a 28-year-old man and his 4-year-old daughter hostage.

Kuntar shot the father dead at close range in front of his daughter and tossed his body in the sea. He then smashed the girl's head, killing her, too. In addition, a 2-year-old girl from the same family suffocated as her mother tried to stop her from crying while they hid during the violence.

Kuntar was sentenced to 542 years in prison.

...A day before the transfer, Goldwasser's father, Shlomo, held out hope about his son's fate.

"They were kidnapped alive. [Hezbollah leader] Hassan Nassrallah swears on it the first day that he announced to the world he kidnapped two soldiers alive," the father said. "If tomorrow he brings them in coffins, it means that he killed them -- his words. It means that they killed them, and if he killed them I am waiting for him to be punished."
The poor father. This is a just exchange? Hezbollah is absolutely correct, this is in fact a victory for them.

Labels: Hezbollah, Israel

Tony Snow was hands down the best presidential press secretary in the modern era. Sharp and concise, he was a rare voice of clearly communicated conservatism in a time when it is desperately needed. God bless his family.

Labels: tony snow

Read this essay by Peter Wallison regarding the Freddie Mae/Fannie Mac fiasco. In short, some 80 percent of all housing loans are ultimately owned by either Freddie Mae or Fannie Mac, institutions which are neither here nor there private nor public sector. What's scary is what our government did for housing loans with these two quasi-socialist Frankensteins they now want to do to investment banking. (If you have a subscription you can check out the WSJ's history of columns critical of Freddie Mae/Fannie Mac going back to 2002.)

Although they are owned by shareholders, Fannie and Freddie are government sponsored enterprises, or GSEs, chartered by Congress to perform a government mission: providing a national market for mortgages and enhancing the availability of affordable housing. This, together with a brace of special statutory exemptions and the fact that the U.S. government has always bailed out its GSEs, has led the capital markets to believe, correctly, that the U.S. government will never allow Fannie and Freddie to fail.

The result has been a complete loss of market discipline, uncontrolled growth, and the development of two giant companies whose deteriorated financial condition now threatens the stability of both the U.S. and the world economy. The story of Fannie and Freddie is a cautionary tale about the moral hazard created by government support for private institutions -- a tale we saw played out in the S&L debacle less than 20 years ago, and one we may be about to inflict on ourselves again.

There might have been a time when it was possible to believe that the feds would not stand behind Fannie and Freddie's obligations, but today, the possibility that any holder of their senior debt (or their mortgage-backed securities) would be allowed to suffer a loss is simply unimaginable.

First, because of unprecedented conditions in the capital markets, they are now virtually the only consistent buyers and securitizers of U.S. mortgages. If they could no longer raise the necessary funds to continue this activity, housing finance -- already very weak -- would come to a halt. The consequences for the housing market in the United States would be dire.

The result of a GSE default for the financial markets and the world economy would, if anything, be even worse. Fannie and Freddie's debt securities are held by thousands of U.S. banks -- often in amounts in excess of their capital -- and in large amounts by financial institutions around the world. Many of the world's most important central banks also hold huge inventories of these securities.

If there were ever the slightest doubt that the U.S. would stand behind these obligations, there would be a rush for the exits that would make what occurred in the equity markets last week look like a stately minuet. The value of GSE debt securities would plummet, and with it the capital of virtually all the world's major banks and other financial intermediaries. With weakened capital, lending would decline and further damage already weak economies, perhaps with truly disastrous results.

Thus, because the U.S. government will not allow Fannie and Freddie to default, they should be able to survive. If housing prices turn up again and their losses are stanched (or if they can raise more capital to cover the losses they will suffer in the future), these two companies will get through this period. This is by far the most likely outcome of the current period of stress.

But their survival will not be unalloyed good news. It will chase the wolf from the door only temporarily. Their embedded losses -- made worse by the risky commitments they are probably now making in order to recover their profitability or hide their losses -- will, as in the case of the S&Ls, eventually have to be paid. And of course, if Fannie and Freddie actually become insolvent, the U.S. government is now ready to step up. Considering that these two companies now have something like $5.3 trillion in liabilities, this is no small step.

This is a bad state of affairs; the U.S. government has lost any room to maneuver. Worse still are indications that no lessons have been learned. In the same week when it became apparent that implicit government backing has made the U.S. hostage to the health of two companies that grew out of control, Messrs. Bernanke and Paulson told Congress that they wanted a new regulatory structure for investment banks like Bear Stearns.

In this plan, the Fed would have supervisory authority over these companies and oversee a formal system for their "orderly liquidation." The only reason the Fed might want to regulate the investment banks is that it believes itself to be somehow at risk. The markets, ever clear-eyed, will read this for what it is -- potential Fed backing if the big investment banks get into trouble. In other words, we are now proposing to introduce a government-created moral hazard into investment banking. The resulting loss of market discipline will replicate the experience with the S&Ls and Fannie and Freddie.

According to reports, not an eye blinked in the House Financial Services Committee when the Fed's bid for more power was laid on the table last Thursday. This is fully consistent with the past willingness of Congress to condone -- and even encourage -- unimpeded growth at Fannie and Freddie.

If Congress actually believes that the Fed can assume responsibility for supervising and liquidating the large investment banks -- and yet not become responsible for bailing them out when their enhanced access to capital results in massive losses -- they deserve to wrestle with the future crisis they are now setting in train. But the American people do not.

Labels: Congress, Economics

Barack Obama isn't bilingual. Neither are his children. But he's "embarrassed" because the rest of us are just like him. More condescending nonsense from the Obama camp:

[Investors Business Daily] Obama peddled his Ameriphobic nonsense at a town hall meeting Tuesday morning in Powder Springs, Ga. Asked a simple question about what he'd do to stop teenagers from dropping out of school — more of a job for a student body president than a U.S. president — he lost the plot, as the (English-speaking) Australians like to say, venturing into dangerous (for him) no-teleprompter territory.

"I agree that immigrants should learn English," he ranted. "But understand this: Instead of worrying about whether immigrants can learn English — they'll learn English — you need to make sure your child can speak Spanish. "You know, it's embarrassing when Europeans come over here, they all speak English, they speak French, they speak German. And then we go over to Europe, and all we can say (is), 'Merci beaucoup.' "

Does he think that one day the rest of the world will stop speaking English just to keep single-language Americans out of the loop? Is he aware that English, as an example, is the worldwide official air-traffic-control language? Has he ever talked to foreign businessmen — or any businessman at all, for that matter — who have different native tongues, yet speak English to each other so they can be understood? Or is he trying to establish some cosmopolitan street-cred with the hipsters who fawn over him?

English became the global language because Britain spread its mother tongue through colonization and trade. And the U.S. sailed capitalism, ambition, a tireless work habit, fairness, justice, the rule of law and a rigorous military defense against tyranny to the top of the world. It's not fashionable to say so in the circles that Obama travels in, but the power and universality of the English language confirm — and strengthen — America's way of life.
Exactly. The world's citizens don't learn English because they have some enlightened attitude that Americans do not. They learn it because so many of them, for several hundred years, had to in order to be successful and compete. Example, just as a greater percentage of American military and politicians spoke French, say, circa 1780 -- it served a necessity! Today, Europeans learn English because the United States conducts business globally, has an annual Gross Domestic Product of $13 trillion -- grossly more than any other country on the planet -- and because they're (Europeans) more likely to vacation here than we are there.

And here I was told that Obama was supposed to be brilliant. His opening comment, the idea that if we learn Spanish our overwhelming influx of illegal immigrats -- mostly from Mexico -- will be more likely to learn English, is juvanile. If Bush said such a thing, he'd be ridiculed, and justly so.

On the contrary to Obamanomics, the opposite is true. Why bother learning English if everyone speaks Spanish? Were you to move to Japan you'd learn Japanese because you'd have to do so, but you wouldn't bother if they all spoke English, right? Else, what's the point?

And while we're on the topic, why should any American bother learning a European language, especially French? The last time I checked, France wasn't exactly becoming an economic powerhouse. Seems to me, if you're going to make the argument, we better learn Chinese.

Finally, Obama's point doesn't sit well with Americans at large (hat tip to Jim Geraghty)

Eighty-three percent (83%) place a higher priority on encouraging immigrants to speak English as their primary language. Just 13% take the opposite view and say it is more important for Americans to learn other languages.
But what do they know? I mean, how dare they question the hypocrisy of the messianic Rockstar-in-Chief Barack Obama.

Labels: 2008, academic bias, Economics, media bias, Obama

The Metaphysics and Some Politics of Global Warming

Regarding Bret Stephens's "Global Warming as Mass Neurosis" (Global View, July 1): In 1992, at my 25th Harvard College reunion, we got an accurate forecast of the "ideological convenience" driving global warming alarmism. In a discussion of the Rio Summit on environment and development, one of my classmates effused, "Who would have thought that the environment would bring us world government?" In other words, the advent of world-wide "pollution" controls will lead to world government (which all of us statist Harvard grads eagerly await).

On the other hand, climatologist Patrick Michaels has noted that we merely need to "follow the money" to explain global warming enthusiasm among scientists and academicians: Huge amounts of taxpayer dollars are running down the drain of climate research, and the people raking in the bucks are the same ones spouting the global warming nonsense.

--Grant W. Schaumburg Jr.
Boston

Labels: climate, corruption, earmarks, environment as religion, global warming, media bias, taxes

Labels: Economics, energy, Oil

Labels: Iran, UN Corruption

The fatal defeatists of Barack Obama, Nancy Pelosi, Harry Reid, etc., may all believe we're losing in Iraq, but apparently Iraq's neighbors do not:

[WSJ] The Prime Minister is also making it clear to his Arab neighbors that his government is not about to collapse. Apparently, they believe him: Jordan, Bahrain and the United Arab Emirates have announced plans to break the Arab diplomatic embargo of Iraq and return their ambassadors to Baghdad; the UAE has also forgiven $7 billion of Iraqi debt. Perhaps Saudi Arabia and Egypt will follow.
Ho-hum, more just desserts from the Petraeus surge and not a word from our mainstream media regarding it. Indeed, antiwar liberals as a whole have invested so much in our defeat in Iraq that they choose to ignore any facts of success, especially since good news in Iraq translates to a more competitive campaign from John McCain. And the mainstream media certainly can't have anyone ruining the promotion of their favorate rock-star-in-chief, Barack Obama.

Example: what hardball toics did NBC Today Show co-anchor Meredith Vieira press upon Obama? His shopping habits and that he liked pie over candy and junk food. Tough stuff.

The, ahem, hard-hitting program spent 20 minutes on the Obama family. Can the McCain family expect equal time from NBC? Of course, that might be more difficult since McCain's two sons are both serving in our armed forces, one having served in Iraq.

But back to the lecture at hand, the MSM's obvious antiwar slant in its Iraq coverage.

Gerard Baker of the UK Times explains:

the evidence is now overwhelming that on all fronts, despite inevitable losses from time to time, it is we who are advancing and the enemy who is in retreat. The current mood on both sides of the Atlantic, in fact, represents a kind of curious inversion of the great French soldier's dictum: "Success against the Taleban. Enemy giving way in Iraq. Al-Qaeda on the run. Situation dire. Let's retreat!"

... Since it is remarkable how pervasive this pessimism is, it's worth recapping what has been achieved in the past few years.

Afghanistan has been a signal success. There has been much focus on the latest counter-offensive by the Taleban in the southeast of the country and it would be churlish to minimise the ferocity with which the terrorists are fighting, but it would be much more foolish to understate the scale of the continuing Nato achievement. Establishing a stable government for the whole nation is painstaking work, years in the making. It might never be completed. But that was not the principal objective of the war there.

Until the US-led invasion in 2001, Afghanistan was the cockpit of ascendant Islamist terrorism. Consider the bigger picture. Between 1998 and 2005 there were five big terrorist attacks against Western targets - the bombings of the US embassies in Africa in 1998, the attack on the USS Cole in 2000, 9/11, and the Madrid and London bombings in 2004 and 2005. All owed their success either exclusively or largely to Afghanistan's status as a training and planning base for al-Qaeda.

In the past three years there has been no attack on anything like that scale. Al-Qaeda has been driven into a state of permanent flight. Its ability to train jihadists has been severely compromised; its financial networks have been ripped apart. Thousands of its activists and enablers have been killed. It's true that Osama bin Laden's forces have been regrouping in the border areas of Pakistan but their ability to orchestrate mass terrorism there is severely attenuated. And there are encouraging signs that Pakistanis are starting to take to the offensive against them.

Next time you hear someone say that the war in Afghanistan is an exercise in futility ask them this: do they seriously think that if the US and its allies had not ousted the Taleban and sustained an offensive against them for six years that there would have been no more terrorist attacks in the West? What characterised Islamist terrorism before the Afghan war was increasing sophistication, boldness and terrifying efficiency. What has characterised the terrorist attacks in the past few years has been their crudeness, insignificance and a faintly comical ineptitude (remember Glasgow airport?)

The second great advance in the War on Terror has been in Iraq. There's no need to recapitulate the disasters of the US-led war from the fall of Saddam Hussein in April 2003 to his execution at the end of 2006. We may never fully make up for three and a half lost years of hubris and incompetence but in the last 18 months the change has been startling.

The "surge", despite all the doubts and derision at the time, has been a triumph of US military planning and execution. Political progress was slower in coming but is now evident too. The Iraqi leadership has shown great courage and dispatch in extirpating extremists and a growing willingness even to turn on Shia militias.

Basra is more peaceful and safer than it has been since before the British moved in. Despite setbacks such as yesterday's bombings, the streets of Iraq's cities are calmer and safer than they have been in years. Seventy companies have bid for oil contracts from the Iraqi Government. There are signs of a real political reconciliation that may reach fruition in the election later this year.

The third and perhaps most significant advance of all in the War on Terror is the discrediting of the Islamist creed and its appeal.

This was first of all evident in Iraq, where the head-hacking frenzy of Abu Musab al-Zarqawi and his associates so alienated the majority of Muslims that it gave rise to the so-called Sunni Awakening that enabled the surge to be so effective.

But it has spread way beyond Iraq. As Lawrence Wright described in an important piece in The New Yorker last month, there is growing disgust not just among moderate Muslims but even among other jihadists at the extremism of the terrorists.

Deeply encouraging has been the widespread revulsion in Muslim communities in Europe - especially in Britain after the 7/7 attacks of three years ago. Some of the biggest intelligence breakthroughs in the past few years have been achieved from former al-Qaeda supporters who have turned against the movement.

There ought to be no surprise here. It's only their apologists in the Western media who really failed to see the intrinsic evil of Islamists. Those who have had to live with it have never been in much doubt about what it represents. Ask the people of Iran. Or those who fled the horrors of Afghanistan under the Taleban.

This is why we fight. Primarily, of course, to protect ourselves from the immediate threat of terrorist carnage, but also because we know that extending the embrace of a civilisation that liberates everyone makes us all safer.

Every death is an unspeakable tragedy. It's right that each time a soldier is killed in action we ask why. Was it really worth it?

The right response to the loss of brave souls such as Corporal Sarah Bryant, the first British woman to die in Afghanistan, is not an immediate call for retreat. It is, first of all, pride; a great, deep conviction that it is on such sacrifice that our own freedoms have always rested. Then, defiance. How foolish is the enemy that it might think our grief is really some prelude to their victory? Finally, confidence. We are prevailing in this struggle. We know it. And everywhere: in Afghanistan, in Iraq, and among Muslims around the world, the enemy knows it too.

Labels: 2008, Iraq, mccain, media bias, Obama, Petraeus

This is a great op-ed from Investors Business Daily. The McCain camp needs to memorize the whole thing and rattle it off at every opportunity.

• "We can't drill our way out of our energy crisis."

Actually, we can. As we've noted before, conservative estimates put the total amount of recoverable oil in conventional deposits at about 39 billion barrels. Offshore, we have another 89 billion barrels or so. In ANWR, 10 billion barrels.

In oil shale deposits, we have more than 1 trillion barrels of oil. In perspective, that's about four times the total reserves of Saudi Arabia. And if estimates of shale reserves as high as 2 trillion barrels prove true, we'll have about a 300-year supply of oil just from shale. This compares with current estimated total U.S. oil reserves of about 21 billion barrels.

ANWR alone is expected to yield 1 million barrels of oil a day. Now make the highly conservative assumption that we're able to get a like amount of oil from the other sources — for a total increase of 3 million to 4 million barrels of oil a day.

That's an enormous rise in oil output. Today, we produce just under 8 million barrels of oil a day from domestic sources. So we could, in effect, boost our energy output 50%, and thus our energy independence, by bringing an additional 4 million barrels of oil to thirsty world markets each and every day.

By the way, those calculations don't include the trillions and trillions of cubic feet of natural gas found in the same locations, which, along with nuclear power, could be used to fire our power plants.

By 2030, according to the U.S. Energy Information Administration, we will need at least 30% more energy to fuel our economy. Nearly 85% of that increase will come from oil and gas, even with expected gains for alternative energy. Can't drill our way out? In fact, it's the only way out of our energy crisis.

• "Oil companies are sitting on 68 million acres of oil leases and refuse to drill."

This is yet another slander of "Big Oil" by House Speaker Nancy Pelosi — one that has become a major talking point for Democrats in Congress. It's completely dishonest.

Oil companies have spent billions of dollars for those leases. Drilling has increased by more than 66% since 2000. They are searching for oil even as you read this. Some parts of those 68 million acres will have oil, some won't. But at $145 a barrel, you can bet oil companies have plenty of incentive to find it.

That said, 68 million acres is in fact a minuscule amount. Some 94% of federal lands — 658 million acres — remains off-limits to exploration. Another 97% — or 1.7 billion acres — of federal offshore properties likewise remains off-limits. These lands contain tens of billions of barrels of recoverable oil. It's there for the taking, now.

How much energy is there? Federal lands, according to the American Petroleum Institute, hold 651 trillion cubic feet of natural gas, enough to fuel 60 million households for 160 years. They hold at least 116 billion barrels of oil, maybe more. That's enough to fuel 65 million cars and provide fuel oil for 3.2 million homes for 60 years.

As such, it's the height of irresponsibility for Congress to leave these lands off the table. It ensures we remain vulnerable to pariah petrostates like Venezuela, Saudi Arabia, Libya, Iran and others who wish us ill.

• "Even if drilling works, it'll take a decade or more for the oil to flow."

This is quite an argument coming from the Democratic Party, which has made keeping oil off the market a linchpin of its energy policy for decades.

If President Clinton hadn't vetoed the idea of drilling in ANWR back in 1995, we'd have that oil on the market today. Ditto if Congress had approved ANWR drilling in 2002, when President Bush requested it.

Even so, the larger point is false anyway. New oil will be flowing in some cases within three to four years, according to industry estimates. But the impact on prices will be immediate. Why? Because markets would suddenly have to discount future oil prices for the expected gain in oil supply. That would cause oil prices, especially in futures markets, to drop.

By the way, this isn't just conjecture. President Reagan, within a week of his inaugural in 1981, removed domestic controls on oil. Energy prices began tumbling almost immediately, with oil falling from $34 a barrel in early 1981 to just $11 by 1986.

It worked before, and it'll work again.

• "Record profits by big oil companies are the reason for soaring prices."

It's true that oil company profits have never been higher. But put into perspective, oil company profits are high because the price is high. As a share of revenue, profits aren't so high.

The average profit, as we've noted before, is around 8 to 9 cents to the dollar. That compares with about 7 cents to the dollar for manufacturers and more than 15 cents to the dollar for computer makers.

In short, oil profits aren't out of whack with the rest of industry.

What doesn't get said is that while oil companies have profit margins of about 8%, about 12% of the price of a gallon of gas goes to the government in the form of taxes. When indirect taxes are included, the share is even higher.

So who are the real price-gougers?

From 1981 to 2006, the oil industry made $867 billion in profits. Yes, that's a lot. But over that same time, they paid total taxes of $1.2 trillion, Energy Department data show. And that doesn't include taxes of $519 billion paid to foreign countries.

Please remember that the next time a politician vows to hit "Big Oil" with a windfall profits tax or some other idea. The tax won't be paid by the oil company; it will be paid by you, the consumer.

In coming weeks, we'll try to look at some of the other myths surrounding America's energy. The problem is, there are so many that dispelling the falsehoods about energy can become a full-time occupation for a newspaper.

In the meantime, let us suggest that if you think more oil will help, you should tell your local members of Congress. They're easy to find at the government Web site thomas.loc.gov. The only problem is, on this topic, many won't want to be found.
Here's a quick additional point for bullet #1, whereby the opponents claim we can't drill our way out of the problem. Let's suppose that the crew at IBD isn't right (they are), that still leaves the fact that this isn't an all or nothing proposition. We can't drill our way out of the problem? Well, okay, how about drilling most of the way out of the problem? How about half the way out of it? How about even a quarter of the way?

I'll tell you this, doing nothing, which is what we've been doing -- not drilling our own proven oil reserves, not building a refinery in 30 years, not building nuclear power plants as even France, Japan and Sweden do (which amazingly puts our energy policy to the left of those countries), heck even liberals in the northeast blocked, yes blocked, a proposed windmill farm in Cape Cod -- has proven to be absurd and deeply expensive. Moreover, it's essentially a tax on the poor. Those who couldn't afford gas prices last year are doubly screwed this year.

Remember that fact the next time you hear one of these self-proclaimed champion of the working man claim that high gas prices are ultimately a good thing.

No, it's not.

Labels: 2008, democrats, energy, mccain, Oil

[WSJ] "I want you to think about this," Barack Obama said in Las Vegas last week. "The oil companies have already been given 68 million acres of federal land, both onshore and offshore, to drill. They're allowed to drill it, and yet they haven't touched it – 68 million acres that have the potential to nearly double America's total oil production."

Wow, how come the oil companies didn't think of that?

Perhaps because the notion is obviously false – at least to anyone who knows how oil and gas exploration actually works. Predictably, however, Mr. Obama's claim is also the mantra of Nancy Pelosi, Barbara Boxer, John Kerry, Nick Rahall and others writing Congressional energy policy. As a public service, here's a remedial education.

Democrats are in a vise this summer, pinned on one side by voter anger over $4 gas and on the other by their ideological opposition to carbon-based energy – so, as always, the political first resort is to blame Big Oil. The allegation is that oil companies are "stockpiling" leases on federal lands to drive up gas prices. At least liberals are finally acknowledging the significance of supply and demand.

To deflect the GOP effort to relax the offshore-drilling ban – and thus boost supply while demand will remain strong – Democrats also say that most of the current leases are "nonproducing." The idea comes from a "special report" prepared by the Democratic staff of the House Resources Committee, chaired by Mr. Rahall. "If we extrapolate from today's production rates on federal lands and waters," the authors write, the oil companies could "nearly double total U.S. oil production" (their emphasis).

In other words, these whiz kids assume that every acre of every lease holds the same amount of oil and gas. Yet the existence of a lease does not guarantee that the geology holds recoverable resources. Brian Kennedy of the Institute for Energy Research quips that, using the same extrapolation, the 9.4 billion acres of the currently nonproducing moon should yield 654 million barrels of oil per day.

Nonetheless, the House still went through with a gesture called the "use it or lose it" bill, which passed on Thursday 223-195. It would be pointless even if it had a chance of becoming law. Oil companies acquire leases in the expectation that some of them contain sufficient oil and gas to cover the total costs. Yet it takes years to move through federal permitting, exploration and development. The U.S. Minerals Management Service notes that only one of three wells results in a discovery of oil that can be recovered economically. In deeper water, it's one of five. All this involves huge risks, capital investment – and time.

If anything, the Democrats ought to be dancing in the streets about "idle" leases. It means fewer rigs. The days of hit-or-miss wildcatting have been relegated to the past by new, more efficient technologies, such as seismic imaging, directional drilling (wells that are "steered" underground) and multilateral drilling (multiple underground offshoots from a single wellbore).

At the same time, finding new reservoirs has become far more complex. Except for a few very large fields discovered decades ago like Prudhoe Bay, most recent discoveries have been smaller, deeper and less concentrated. The U.S. needs a continuous supply of discoveries to replace declining wells.

Yet companies are not allowed to explore where the biggest prospects for oil and gas may exist – especially on the Outer Continental Shelf. Seven of the top 20 U.S. oil fields are now located in analogous deepwater areas (greater than 1,000 feet) in the Gulf of Mexico. In 2006, Chevron discovered what is likely to be the largest American oil find since Prudhoe, drilled in 7,000 feet of water and more than 20,000 feet under the sea floor. The Wilcox formation may have an upper end of 15 billion barrels of recoverable oil and should begin producing by 2014 – perhaps ushering in a new ultradeepwater frontier.

Likewise, in April, the U.S. Geological Survey revised its estimate for the Bakken Shale, underneath the badlands of North Dakota and Montana. The new assessment – as much as 4.3 billion barrels of oil – is a 25-fold increase over what the Survey believed in 1995. Such breakthroughs confirm that very large reserves exist, if only Congress would let business get at them.

All of which has Democrats sweating bullets. The leadership is desperate to avoid debating a Department of Interior spending bill, because they know Republicans will offer amendments lifting the drilling moratorium that may peel off some Democrats. Last week, Chairman David Obey shut down the Appropriations Committee rather than countenance more domestic energy production. Given Democratic energy illiteracy, this is a fight the GOP can win if it keeps up the pressure.

Labels: 2008, democrats, energy, Obama, Oil

[WSJ] For those who still claim that tax rates don't matter to economic decisions or U.S. competitiveness, we present Exhibit A: the 2004 American Jobs Creation Act.

This law gave American companies a one-year window in 2005 to repatriate earnings from foreign subsidiaries to the United States at a 5.25% tax rate. Normally companies must pay the 35% U.S. corporate tax rate, minus a credit for whatever foreign taxes they paid on those earnings.

The IRS examined the results from this tax cutting experiment and found that the money came back in a flood. More than 800 U.S. corporations repatriated $362 billion from foreign operations. Congress's Joint Committee on Taxation had predicted closer to $200 billion. These dollars are now being invested in the U.S., rather than remaining in Europe or China. This capital infusion may be one reason that U.S. business investment rose 9.6% in 2005 – the highest rate in more than a decade.

Many Democrats, liberal groups and even some economists in the Bush Treasury opposed the measure four years ago, predicting it would lose revenue and merely be a tax holiday for profitable corporations. The Joint Tax Committee estimators also blundered again by predicting a mere $2.8 billion in revenue gains in the first year and then big losses after 2005. As always, they underestimated how tax reductions change behavior. The tax incentive raised $18 billion in 2005, and revenues have continued to exceed estimates. Instead of getting 35% of nothing, as U.S. companies kept their cash abroad, the Treasury took in 5.25% of the hundreds of billions the companies brought home.

Labels: Economics, tax cuts, taxes

In the absence of God, man will create his own. Bret Stephens expands on that old adage.

NASA now begrudgingly confirms that the hottest year on record in the continental 48 was not 1998, as previously believed, but 1934, and that six of the 10 hottest years since 1880 antedate 1954. Data from 3,000 scientific robots in the world's oceans show there has been slight cooling in the past five years, never mind that "80% to 90% of global warming involves heating up ocean waters," according to a report by NPR's Richard Harris.

The Arctic ice cap may be thinning, but the extent of Antarctic sea ice has been expanding for years. At least as of February, last winter was the Northern Hemisphere's coldest in decades. In May, German climate modelers reported in the journal Nature that global warming is due for a decade-long vacation. But be not not-afraid, added the modelers: The inexorable march to apocalypse resumes in 2020.

This last item is, of course, a forecast, not an empirical observation. But it raises a useful question: If even slight global cooling remains evidence of global warming, what isn't evidence of global warming?

... Socialism may have failed as an economic theory, but global warming alarmism, with its dire warnings about the consequences of industry and consumerism, is equally a rebuke to capitalism. Take just about any other discredited leftist nostrum of yore – population control, higher taxes, a vast new regulatory regime, global economic redistribution, an enhanced role for the United Nations – and global warming provides a justification. One wonders what the left would make of a scientific "consensus" warning that some looming environmental crisis could only be averted if every college-educated woman bore six children: Thumbs to "patriarchal" science; curtains to the species.

A second explanation is theological. Surely it is no accident that the principal catastrophe predicted by global warming alarmists is diluvian in nature. Surely it is not a coincidence that modern-day environmentalists are awfully biblical in their critique of the depredations of modern society: "And it repented the LORD that he had made man on the earth, and it grieved him at his heart." That's Genesis, but it sounds like Jim Hansen.

And surely it is in keeping with this essentially religious outlook that the "solutions" chiefly offered to global warming involve radical changes to personal behavior, all of them with an ascetic, virtue-centric bent: drive less, buy less, walk lightly upon the earth and so on. A light carbon footprint has become the 21st-century equivalent of sexual abstinence.

Finally, there is a psychological explanation. Listen carefully to the global warming alarmists, and the main theme that emerges is that what the developed world needs is a large dose of penance. What's remarkable is the extent to which penance sells among a mostly secular audience. What is there to be penitent about?

As it turns out, a lot, at least if you're inclined to believe that our successes are undeserved and that prosperity is morally suspect. In this view, global warming is nature's great comeuppance, affirming as nothing else our guilty conscience for our worldly success.

In "The Varieties of Religious Experience," William James distinguishes between healthy, life-affirming religion and the monastically inclined, "morbid-minded" religion of the sick-souled. Global warming is sick-souled religion.

Labels: climate, environment as religion, global warming

Iraq's Oil Surge
July 5, 2008; WSJ - Page A10

Here's a thought experiment: Assume that Iraq's democratic government declared it was nationalizing its oil industry, a la Venezuela or Saudi Arabia, while excluding American companies from the country. How do you think U.S. politicians would react? With angry cries of "ingratitude" and "this is what Americans died for"?

Of course they would, led no doubt by that critic for all reasons, Senator Chuck Schumer of New York. So it is passing strange that Mr. Schumer and other Senators are now assailing Iraq precisely because it is opening up to foreign oil companies, especially to U.S. majors like Exxon Mobil and Chevron. For some American pols, everything that happens in Iraq is bad news, especially when it's good news for the U.S.

Iraq announced this week that it is inviting global competition to develop its major oil reserves, with 35 oil companies invited to bid. By tapping outside capital and expertise, Iraq hopes to increase production by 60%, providing a much-needed boost to its own coffers and the world's tight oil supply.

This is welcome news. With elections looming later this year and next, the temptation for Prime Minister Nouri al-Maliki's government must have been to play the nationalist card – the way that Mr. Schumer did against Dubai Ports World's proposed U.S. investment in 2006 (see, for instance, "Ports of Gall"). Many Iraqis remain suspicious of outside oil companies – the legacy of a colonial past in which Iraq felt exploited for its oil.

Instead, Iraq chose competitive bidding that will bring in the best expertise to exploit its national resource. Oil Minister Hussain al-Shahristani is predicting that, with outside help, Iraq could become the second or third largest oil-producing country in the world. Today it produces about 2.5 million barrels a day, compared to 11 million for the world-leading Saudis. Foreign companies will be required to have an Iraqi partner, and to hire Iraqis, while most oil revenues will still flow to the Iraqi people.

What seems to irk Mr. Schumer – and running mates John Kerry and Missouri's Claire McCaskill – is Iraq's decision to sign shorter-term, no-bid service contracts with Exxon Mobil, Royal Dutch Shell, BP, Total and Chevron. Most of these firms had extensive experience in Iraq prior to Saddam Hussein's nationalization, and were chosen because their knowledge will help Iraq boost near-term production. The contracts will run no more than two years, and all five firms have spent the past three years providing training, analysis and advice to Iraq – free of charge.

The Democrats nonetheless stomped their feet in a letter last week to Secretary of State Condoleezza Rice. They demanded that she intervene to stop the Iraqis "from signing contracts with multinational oil companies until a [national oil law] is in effect in Iraq." Their complaint is that a hydrocarbon law is one of the Bush Administration's "benchmarks for reconciliation" in Iraq, and that these oil contracts would only "further deepen political tension in Iraq and put our service members in even greater danger." They also griped that the five firms would get an "insider's advantage" to later oil bidding.


Also piling on is House baron Henry Waxman, who is upset with a separate contract that the Kurdistan Regional Government has signed with Texas's Hunt Oil. Mr. Waxman thinks the Bush Administration didn't do enough to stop the deal. Then again, this is old news, as the contract was signed last year. And while the Baghdad central government wasn't pleased the Kurds had moved on a contract without national approval, the deal hasn't impeded Iraq's broader progress.

We doubt French politicians are objecting to Total's contract, but American Democrats are so blinkered about Iraq that they now object even to U.S. companies getting business on the merits. The hydrocarbon law would help to clarify revenue-sharing between Baghdad and Iraq's outlying provinces. But even without that law, oil revenues are already flowing throughout the country, including to Sunni-majority areas.

The faster and more efficiently the oil deposits are developed, the more revenue there will be to distribute. And the faster Iraq will be able to rebuild on its own – which is what Democrats say they want. Meanwhile, by inviting foreign partners, Iraq is avoiding the trap of nationalization that has harmed so many countries. It concentrates political power, undermining democracy. National oil companies also tend to underinvest in technology, letting harder-to-exploit oil become a wasting asset.

What the U.S. should promote in Iraq is some kind of oil trust, or stock or revenue dispersal, that would give individual Iraqis a share of their oil wealth. This would be both a tool to build national unity and to prevent any one political group from dominating Iraq's main revenue source. If Mr. Schumer wants to help on that score, he might do some good.

Labels: democrats, Economics, free markets, Iraq, Oil