Global Warming, OH! BAMA! Politics

by John Dalt

01/06/09

From Asia Times an article on Global Warming stated, “Meteorologists in the global warming camp are puzzled that 2008 was cooler than the previous year, confounding dire predictions of melting ice caps and extreme weather patterns.” “2008 was the year man-made global warming was disproved”, a recent UK newspaper headline proclaimed. “Global temperatures have dropped sharply enough to cancel out much of their net rise in the 20th century,” the article claimed. I do not know if the earth is getting warmer, some of the evidence seems to point to that conclusion. I think it is a stretch to think we can affect the climate by driving a car, mowing the lawn, or using electricity. I read once that Mt. Saint Helens emitted more ash and carbon into the atmosphere than man had in over 100 years. Facts be damned, we are heading towards a regulatory atmosphere that many of us have not envisioned. Prices of all energy will rise due to restrictions on production and increased tax burdens. The government will take money from these producers to increase funding for alternative energy, while restricting production in order to raise the price so non-carbon energy can be competitive. The interesting angle will be if our government takes on China. Will we cripple our economy while China continues to burn coal and oil? This is the problem with the Kyoto treaty, the U.S. and other ‘developed’ countries had to reduce carbon use while the ‘developing’ countries increased pollution so they could catch up. Pollution from China is blown across the ocean and affects the air quality in California.

Our new administration is going to have to take off the ‘rose colored glasses’.  It is a bad world out there, the UN operates counter to the freedoms we enjoy, giving every despot and dictator a place at the table.  We only have to look at the latest ‘crisis’ in the Gaza strip.  How many members of the UN were calling for emergency declarations in the last three months as HAMAS lobed mortars and rockets into Israel?  HAMAS broke the cease-fire, but I do not remember any late night sessions at the UN because of the loss of life in Israel.

The next few weeks will tell us if the love affair the media has with OH! BAMA! will continue until we all throw up.  He is our President, not the Messiah.  It will be refreshing to hear them questioning his integrity, honesty, and intelligence like they did President Bush.  Let the howls begin.

Lots of politics in today’s letter because the congress is in session.  I am reminded of the mutual fund that goes to cash while congress is in session, only investing in stocks while the congress is in recess.

The market continued a bear market rally, it seems we have a green light to 1000 on the SP500.  The important level of resistance is 1005.75 that was reached on Nov. 4^th (Election Day).   Energy, ags, and other commodities are leading us so far.  The financials have not joined in for the party yet; we will see what tomorrow brings.  We could see a small drop as momentum catches up with the slow climb.

WARNING:    The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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