Oil Production Nearing Capacity

If you want to examine what might shake up the world economy, look no further than oil:

U.S. oil prices hit new record levels above $44 a barrel on Tuesday as the head of the OPEC producers’ cartel said there was little the group could do to cool the red-hot market for the time being.
U.S. light crude rose 42 cents to $44.24 a barrel, marking the highest level since crude futures were launched on the New York Mercantile Exchange in 1983.
. . .
OPEC President Purnomo Yusgiantoro said on Tuesday the producers’ cartel had no extra oil to immediately supply the world market to bring down prices.
“The oil price is very high, it’s crazy. There is no additional supply,” Purnomo told reporters in Jakarta.

That’s bad enough. Of course if you are looking for a worst case scenario, things could get much worse if there’s a substantial disruption.

Homeland Insecurity

Interesting factoid illustrating national priorities at work. Stephen Flynn, author of America the Vulnerable:

We are spending more every three to four days in the war in Iraq than we’ve spent for the last three years in federal grant monies to our 361 commercial seaports and that kind of asymmetry between about three cents on the dollar for defense versus offense I argue doesn’t make much sense when our enemies are not going to take us on, on the traditional force to force.
They’re coming after the non-military elements of our power, the things that underpin our power, our economy and our civil society. That is something that we’re still struggling post 9/11 to come to grips with.

But hey, if Al Qaeda forms an armored column and stages an assault on our Baghdad schools, we’ll be ready.

Bush Boom

Never mind this, we’re turning the corner!

Layoffs in the United States occurred at the second-fastest rate on record during the first three years of the Bush administration, a government report has found.
.
In the latest survey of how frequently workers are permanently dismissed from their jobs, the layoff rate reached 8.7 percent of all adult jobholders, or 11.4 million men and women age 20 or older. That is nearly equal to the 9 percent rate for the 1981-83 period, which included the steepest contraction in the American economy since the Depression.
. . .
In the latest survey, 56.9 percent of those who said they had been re-employed also said they were earning less in their new jobs than in their old ones. That compared with 46.6 percent in 1991-93, a similar period of recession followed by weak recovery, and 42.2 percent in 1997-99, a boom period.

Now, if we can only get rid of the “death tax” in 2011, all our economic problems will be over.

Clash of Wheels

Nice to see the media finally zeroing in on some real issues in the campaign.
Once again, I’m with Kerry on this one. But I’d be willing to explore Bush’s side of the argument if I was suitably equipped.