??--Oil, Oil, and Oil

James Hamilton suggests the Iraq ‘surge’ is achieving its main objectives, and that Paul Krugman and Michael Greenstone each attempt to read too much into the economic data coming from Iraq. I guess I would agree with Hamilton to that degree, but the question must be where do We take it from here? Here is my quandary: I have read Estimates stating Foreign Fighters can be infiltrated into Iraq for as little as $9000, and equipped with Weaponry on site for as low as $4000 per man. I also find Estimates declaring a Foreign Fighter Contingent of 700,000 exists, and is ready to be transferred to Iraq. Intelligence Summaries have contended Infiltration Speed at around 25 Days, and Weapons Supply requires about 10 Days. Almost all Intelligence Reports indicate that Native Iraqi elements cannot fight armed Foreign Fighter elements by themselves, and Iraqi Police and Army personnel are identified and Targeted by a national network for Foreign Fighters, whereby such Personnel and their families are terrorized–often killed. Current American Troop levels and Troop assignments leaves 80% of Iraq outside the Protected Areas. My Question is: What impact is the Surge actually having, and what degree of longterm effect will it have?

I believe that John Whitehead is wrong in his view about the equality between a Carbon Tax and Cap-n-Trade. The real trouble resides also in what comes after. A Carbon Tax is unambiguous, at no point in the implementation of the Program does there reside opportunity to finesse more favorable position by Taxpayers. Everything about Cap-n-Trade stinks of accommodation. Is there to be auction of Carbon Credits, or not? Will there be a mixture of both Grants and auction, and based upon what–previous excessive Carbon discharge? Who will set the level of Carbon Permits–and will they become a form of Political patronage favoring Who? What and Who will set the regulations for setting Carbon Permit levels–or will it become the first legal Black Market? Understand that a simple Carbon Tax can be passed, a Date set, and go into effect immediately upon that Date. Cap-n-Trade will actually never go into effect, as accommodations continually reset the Program to Zero. It is all a question of the amount of Corruption which is allowed.

Lord Oxburgh has excellent view of the coming Oil Crisis, knowing that the price of Oil can do nothing but go up in the future. The simple Cost of future Drilling and Extraction of Oil will eventually raise the price of Oil. He also makes the Case for a Carbon Tax, stating that current Oil prices are not sufficiently high to generate Investment in alternative Energy sources. The Carbon Tax serves the purpose of making such Investment more advantageous through higher Oil prices to the Consumer. Component position insists it is better to have the higher Oil prices now, both reducing Consumption and increasing alternative Investment; rather than raising extreme Production Costs in the future. lgl