- Jun 6, 2007
- 852
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This Inflation Reduction Act Bill that the House of Representatives is poised to pass today is a disaster, it will fuel inflation and cause the Federal Reserve Board to hike interest rates significantly higher than they would have and hold them there longer when the FED has done with its actions on interest rates at the end of this year or the beginning of next year it will throw the U.S. economy into a major recession, dramatically hurting corporate income resulting in significant layoffs and cut in capital spending. The days of the American worker having leverage on pay and working conditions will be history, and this recession won't end quickly because the Republicans will take the House this year and they ain't going to go along with Democrats spending spree behavior so the country will have to work its way out of the Recession naturally which will take time and cause a lot of ordinary Americans a lot of pain.
Why you ask is this bill going to increase and strengthen the roots of inflation in America continuing this projection of everything going up in price at too high a rate in America? One, fossil fuel prices have their tentacles throughout our nation's economy it has been that way for fifty years and this bill creates enormous pressure for prices to remain high. This bill will increase the royalty rate energy companies that lease Federal land will have to pay the Federal government for the oil and gas they produce off the lease by "thirty-three percent"; it will increase the minimum cost of a lease by twenty-five fold that is right twenty-five hundred percent. The idiot Democrats think that that purpose of the lease program is to maximize the income for the Federal government from the leases where a political party that was good stewards of American economy would recognize that the purpose of the lease program is too have stable and low as possible energy prices. The effect of this bill's provisions jacking up the costs of leases for federal lands is very simple, Executives have a fiduciary duty to maximize earnings for shareholders so if the federal government dramatically increases the cost of leases which will cut into energy companies earnings these Executives will purchase less of these leases meaning production of energy from federal lands will be reduce and since the price of fossil fuels is dictated by the tightness of the supply demand curve it will mean a tighter correlation meaning higher prices. Plus, what do these provisions tell OPEC which America and the Free World needs to pump more oil and gas to lower prices it tells them that America is not being reasonable about its conversion to renewable energy they are being extreme they are only thinking about the environmentalist's interests so we should think about our interest and keep supply tight so prices will stay high and our revenue will be maximized! The media made a big to-do about Senator Manchin getting in the bill a linkage between issuances of solar and wind permits to the leasing of land for fossil fuel production; this is a big fat goose egg Senator Joe Manchin got snookered by Senator Chuck Schumer on this whole issue the bill requires only that the Bureau of Land Management hold a lease auction it doesn't condition the issuance of solar and wind permits to actual issuance of leases for fossil fuel development; with the Inflation reduction acts jacking up the cost of leases, energy company interests in leases will be way down so this bill will not increase domestic production of oil and gas like it has been packaged as doing it will do just the opposite!
Secondly, the Inflation Reduction Act goes way overboard on spending money this excessive spending will dramatically increase the Federal government's demand for labor especially skilled labor and products thus driving inflation! I don't have a problem with the Federal government's helping to pay, whether it be through grants or tax credits, solar energy, wind energy, hydrogen energy and electric vehicles to a reasonable degree - this all helps the climate. But this bill just gives numerous Federal agencies slush funds, an abundance of money that is way overboard and unnecessary to spend; one could write ten articles in the unnecessary spending in the bill. These two items pop out for me; the bill gives one billion dollars to be spent in four years for the General Services Administration for environmental programs for federal buildings and a half a billion dollars to be spent in six years for the Department of Homeland Security to be spent for environmental programs.
Thirdly, the Inflation Reduction Act has begun this program which charges a fee on the amount of natural gas released into the air. Natural gas is a gas which means it leaks easy, natural gas is something that is vital to our economy. The Democrats didn't mandate that state of the art equipment be used by the industry or a fine paid so as to reduce as much as reasonably possible natural gas releases. The Democrats mandated this fee which common sense would indicate that the Democrats want to shut down the use of natural gas, acting like typical Joe Biden Democrats with their philosophy of "save the climate even if it means killing the American consumer". Dealing with these regulations is going to be a huge cost on the natural gas industry; trade groups say that the average natural gas bill for American families will increase as much as seventeen percent because of these provisions. Also important natural gas is used in the production of many things like plastics and fertilizers so if federal regulations cause natural gas prices to go higher other essential items in our economy will go higher, overall inflation will increase!
This bill is full of really stupid government initiatives. The auto industry is betting the house on American consumers embracing ev automobiles whole heartedly; EV automobiles are significantly higher priced than combustion engine vehicles because the EV batteries have rare earth minerals in them. Authorities don't know for sure if the supply of these materials will be there in the future and what the price will be. The Democrats are acting like complete idiots with their conditions on the EV tax credit for automobile purchases in the bill! Experts are telling the American people that crystal clearly the tax credit won't apply to most of the EV automobiles currently in production and it gets worse on the number of qualifying vehicles when the Democrat condition goes into effect that the batteries or parts of them need to be sourced in America. The point here is real simple, Congress and the President should be serving the American people here and protecting this vital U.S. industry the automobile industry. All these price limits on eligible visits should be scrapped. The policy should be real simple if the price of the new EV automobile is under $ 42.5 K you get a tax credit of $7.5 K and if the price of the new EV automobile is over $42.5 K you get a tax credit of $10 K; to be eligible for the credit your adjusted gross income for an individual cannot exceed $175K and for a couple it cannot exceed $350 K. The current provisions in this bill have so many people ticked off its a real debacle on the Democrats part here!
The Democrats scheme in the bill to lower some drug prices for Medicare by allowing the agency to negotiate prices with pharmaceutical companies is such a stupid policy it is one for the record books on stupid! The actual policy is in fact price regulation because if a drug company doesn't accept Medicare's decision the drug company will face an overall tax on the drug of up to ninety-six percent; this will end up just dramatically increasing the price of the drug for people under 65 years of age, non-medicare covered Americans. This is so stupid by the Democrats not only will it be hurting America as outlined, the pharmaceutical industry and their allies are going to crucify Democrat candidates for office in advertisements during campaign season over this issue!
If the Democrats enact this Inflation Reduction Act bill into law they are killing their chances of holding the White House in 2024 because by then this bill will have caused a severe recession and the American voter will be mad as hell and looking to throw the party responsible out of office. Plus, prior to this bill being on the cusp of passage the Democrats had an advantage going into this years November elections with the Dobbs case the Supreme Court ruling taking away a women's right to an abortion during her entire pregnancy; this malfeasance ruling by the Supreme Court was worth at least three to five percent of the vote for Democrat candidates as voters would be driven to vote and vote against this ruling in the exercise of their franchise. With passage of this Inflation Reduction Act the Democrats will be neutralize this abortion issue bump they will be getting; this legislation will drive people to the polls this November and to vote Republican to speak out against this bad piece of legislation. I would not be surprised at all if election analysts end up concluding that this legislation was the cause of the Democrats losing the Senate this year! The really sad thing about this whole bill is that it is fifty percent good if the Democrats would just listen to the responsible critics and amend the bill accordingly they could pass a good bill that would really help their party and their country; instead the Democrats are poised to dramatically hurt America with enactment of this Inflation Reduction Act legislation!
Why you ask is this bill going to increase and strengthen the roots of inflation in America continuing this projection of everything going up in price at too high a rate in America? One, fossil fuel prices have their tentacles throughout our nation's economy it has been that way for fifty years and this bill creates enormous pressure for prices to remain high. This bill will increase the royalty rate energy companies that lease Federal land will have to pay the Federal government for the oil and gas they produce off the lease by "thirty-three percent"; it will increase the minimum cost of a lease by twenty-five fold that is right twenty-five hundred percent. The idiot Democrats think that that purpose of the lease program is to maximize the income for the Federal government from the leases where a political party that was good stewards of American economy would recognize that the purpose of the lease program is too have stable and low as possible energy prices. The effect of this bill's provisions jacking up the costs of leases for federal lands is very simple, Executives have a fiduciary duty to maximize earnings for shareholders so if the federal government dramatically increases the cost of leases which will cut into energy companies earnings these Executives will purchase less of these leases meaning production of energy from federal lands will be reduce and since the price of fossil fuels is dictated by the tightness of the supply demand curve it will mean a tighter correlation meaning higher prices. Plus, what do these provisions tell OPEC which America and the Free World needs to pump more oil and gas to lower prices it tells them that America is not being reasonable about its conversion to renewable energy they are being extreme they are only thinking about the environmentalist's interests so we should think about our interest and keep supply tight so prices will stay high and our revenue will be maximized! The media made a big to-do about Senator Manchin getting in the bill a linkage between issuances of solar and wind permits to the leasing of land for fossil fuel production; this is a big fat goose egg Senator Joe Manchin got snookered by Senator Chuck Schumer on this whole issue the bill requires only that the Bureau of Land Management hold a lease auction it doesn't condition the issuance of solar and wind permits to actual issuance of leases for fossil fuel development; with the Inflation reduction acts jacking up the cost of leases, energy company interests in leases will be way down so this bill will not increase domestic production of oil and gas like it has been packaged as doing it will do just the opposite!
Secondly, the Inflation Reduction Act goes way overboard on spending money this excessive spending will dramatically increase the Federal government's demand for labor especially skilled labor and products thus driving inflation! I don't have a problem with the Federal government's helping to pay, whether it be through grants or tax credits, solar energy, wind energy, hydrogen energy and electric vehicles to a reasonable degree - this all helps the climate. But this bill just gives numerous Federal agencies slush funds, an abundance of money that is way overboard and unnecessary to spend; one could write ten articles in the unnecessary spending in the bill. These two items pop out for me; the bill gives one billion dollars to be spent in four years for the General Services Administration for environmental programs for federal buildings and a half a billion dollars to be spent in six years for the Department of Homeland Security to be spent for environmental programs.
Thirdly, the Inflation Reduction Act has begun this program which charges a fee on the amount of natural gas released into the air. Natural gas is a gas which means it leaks easy, natural gas is something that is vital to our economy. The Democrats didn't mandate that state of the art equipment be used by the industry or a fine paid so as to reduce as much as reasonably possible natural gas releases. The Democrats mandated this fee which common sense would indicate that the Democrats want to shut down the use of natural gas, acting like typical Joe Biden Democrats with their philosophy of "save the climate even if it means killing the American consumer". Dealing with these regulations is going to be a huge cost on the natural gas industry; trade groups say that the average natural gas bill for American families will increase as much as seventeen percent because of these provisions. Also important natural gas is used in the production of many things like plastics and fertilizers so if federal regulations cause natural gas prices to go higher other essential items in our economy will go higher, overall inflation will increase!
This bill is full of really stupid government initiatives. The auto industry is betting the house on American consumers embracing ev automobiles whole heartedly; EV automobiles are significantly higher priced than combustion engine vehicles because the EV batteries have rare earth minerals in them. Authorities don't know for sure if the supply of these materials will be there in the future and what the price will be. The Democrats are acting like complete idiots with their conditions on the EV tax credit for automobile purchases in the bill! Experts are telling the American people that crystal clearly the tax credit won't apply to most of the EV automobiles currently in production and it gets worse on the number of qualifying vehicles when the Democrat condition goes into effect that the batteries or parts of them need to be sourced in America. The point here is real simple, Congress and the President should be serving the American people here and protecting this vital U.S. industry the automobile industry. All these price limits on eligible visits should be scrapped. The policy should be real simple if the price of the new EV automobile is under $ 42.5 K you get a tax credit of $7.5 K and if the price of the new EV automobile is over $42.5 K you get a tax credit of $10 K; to be eligible for the credit your adjusted gross income for an individual cannot exceed $175K and for a couple it cannot exceed $350 K. The current provisions in this bill have so many people ticked off its a real debacle on the Democrats part here!
The Democrats scheme in the bill to lower some drug prices for Medicare by allowing the agency to negotiate prices with pharmaceutical companies is such a stupid policy it is one for the record books on stupid! The actual policy is in fact price regulation because if a drug company doesn't accept Medicare's decision the drug company will face an overall tax on the drug of up to ninety-six percent; this will end up just dramatically increasing the price of the drug for people under 65 years of age, non-medicare covered Americans. This is so stupid by the Democrats not only will it be hurting America as outlined, the pharmaceutical industry and their allies are going to crucify Democrat candidates for office in advertisements during campaign season over this issue!
If the Democrats enact this Inflation Reduction Act bill into law they are killing their chances of holding the White House in 2024 because by then this bill will have caused a severe recession and the American voter will be mad as hell and looking to throw the party responsible out of office. Plus, prior to this bill being on the cusp of passage the Democrats had an advantage going into this years November elections with the Dobbs case the Supreme Court ruling taking away a women's right to an abortion during her entire pregnancy; this malfeasance ruling by the Supreme Court was worth at least three to five percent of the vote for Democrat candidates as voters would be driven to vote and vote against this ruling in the exercise of their franchise. With passage of this Inflation Reduction Act the Democrats will be neutralize this abortion issue bump they will be getting; this legislation will drive people to the polls this November and to vote Republican to speak out against this bad piece of legislation. I would not be surprised at all if election analysts end up concluding that this legislation was the cause of the Democrats losing the Senate this year! The really sad thing about this whole bill is that it is fifty percent good if the Democrats would just listen to the responsible critics and amend the bill accordingly they could pass a good bill that would really help their party and their country; instead the Democrats are poised to dramatically hurt America with enactment of this Inflation Reduction Act legislation!
