Comments by Kallenberg
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Posted on July 28 at 6:18 a.m. (Suggest removal)
The refinery in North Pole which supplies gasoline to local residents has to fuel it's own operation with the crude oil from the pipeline. Refineries in the lower 48 are able to use natural gas which is cheaper than crude oil. Hence, the extra operating expense is passed on to us, the consumer.
On Gas prices
Posted on May 9 at 9:50 a.m. (Suggest removal)
Last night, the Mayor spoke to the Assembly on why energy prices were so high. He focused on the fundamentals of the oil market; tight supply/demand due the expanding global economy, the possiblilty of "peak oil," etc. Although I don't disagree with his broad anaylsis, He only gave half the explanation for higher energy prices.
To buy a product, two items are needed, a product (oil), and money to exchange for that product. The Mayor completely neglected the issue of our US currency, which is a cornerstone of our economy. I am utterly amazed at how little this subject is being talked about when it comes to the subject of higher prices.
The value of our US Dollar is being destroyed by inflation. Inflation is defined as the expansion of the amount of money in circulation. Since Greenspan took over the Federal Reserve in 1988, the money supply has been consistently rising. Arguments can be made that the Dot-com/stock market crash of 2001 was due to money supply expansion of the 1990's. In response to that event and 9/11, the Fed slashed interest rates in 2001. This set the stage for more money creation, which has led to the currently deflating housing bubble, and a 7-year steady rise in commodity prices. Money supply growth rate is currently 17.5%, the highest rate in our history. People are feeling the pain of higher prices due to inflation.
The reason for escalating energy prices since last summer are not due to the reasons the Mayor gave last night, at least short-term. The reason is the devaluation of our money. On April 8th, 2008, OPEC Cheif Adbullah al-Badri remarked, "There is clearly no shortage of oil in the market." Still, "OPEC stands ready to act if the market shows a need for any further measures." OPEC Chief Chakib Khelil commented, "there is no link between price levels and supply, and inventories are already high." These OPEC officials are saying that present high petroleum prices are NOT due to supply shortages.
Al-Badri went on to say (and this is the important wording!), "The turmoil in some global equity markets and the considerable depreciation in the US dollar have encouraged investors to seek better returns in commodities, particularly in crude oil futures. This has driven prices higher."
Here it is again, ". . .the considerable depreciation in the US dollar . . . has driven (oil) prices higher."
This explains why we are seeing higher food prices, as well.
The Borough has declared a "state of emergency" because of higher energy prices. This misses the target. In reality, the stability of our money is in a state of emergency. This is due to Federal Reserve Bank and Federal Government actions which have massively inflated our money supply. This problem is beyond local scope, and citizens should direct their concerns toward the root cause. Public pressure needs to bear on our Federal officials to correct and stabilize our currency by reining in the Federal Reserve and haulting inflation.
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Posted on September 4 at 11:32 a.m. (Suggest removal)
Will Finley will have my vote this coming election. I met Will last
year and find him to be very honest, and possessing a great deal of integrity. Above all, he has clear principles in respect to
the lawful role our government should play in our lives.
I would also support the fact that he is running in District 8 (the
University area down to Cantwell) against
Dave Guttenberg. Scott Kawasaki is the House Rep. in District 9
(Fairbanks City limits, west of Cushman).
On A vote for Will