Wednesday, November 9, 2011
Phil Flynn: Italy Inverts
Yesterday Iran fears helped drive the market higher but today it is the concern of economic slowing and the fear of contagion. Maybe because the market is not convinced that the bombing of Iran is not going to happen anytime soon. That makes the news on Chinese inflation data sort of a double edge sword. Yes China inflation hit a five month low and that will allow China some slack to stimulate the economy. Yet at the same time the Chinese economy might be slowing reflecting a great European recession .
President Obama 5 year plan for offshore drilling is a five year plan to economic disaster. President Obama trying to provide political cover for his politically motivated drilling moratorium that has cost this nation thousands of good paying jobs and has intensified the impact of the recession across the south is now proposing a five-year plan to open up six areas for oil and gas drilling, including unleased portions of the Gulf of Mexico and along Alaska's coast which they say is a cautious approach that "will help us continue to reduce our dependence on foreign oil and create jobs here at home."
The problem is that it is too little too late. The Interior Department is proposing just 15 potential lease sales in 2012-2017, with five annual lease sales in the western Gulf beginning next fall, and lease sales in the central Gulf starting in spring 2013. according to reports Two of the lease sales will be held in 2014 and 2016 for tracts in the eastern Gulf. Those that are not currently under a congressionally mandated leasing moratorium, set to expire in 2022, and three more sales would be scheduled in "frontier areas" off Alaska's coast, including the Beaufort and Chukchi seas, and the Cook Inlet.
Also the jobs lost because of the resistance to the Keystone pipeline is it any wonder that the President's approval rating is abysmal?
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