Fresno SkyLife Helicopter Almost Crashes Into Drone

Boy, what is with all the drones!

Here's the latest from ABC News 30 Fresno, "UPDATE: Drone almost hits Fresno SkyLife helicopter."

And this made it all the way to the national media, at CBS News This Morning, "Sharp rise in close calls between drones and planes."

Michelle Malkin Slams Environmental Protection Agency on Animas River Contamination

Michelle was unusually fired up yesterday.

At Twitchy, "‘Make it stop!’ Michelle Malkin pounds EPA for unwelcome response to river contamination."

Only on rare occasions that I spell this out, but it's necessary. Fuck you @epa #environmentalpollutionagency ==> https://t.co/lksq2Vs75P

— Michelle Malkin (@michellemalkin) August 12, 2015

Plus, watch, at RT America, "RAW: Aerial view of wastewater contaminated Animas River."

And at Blazing Cat Fur, "WATCH EPA Chief Finally Apologize (Not Really) for Toxic Colorado River Spill." Be sure to click through for the Ezra Levant commentary at the video.

Rogue Drones

Following-up from last month, "Drones Disrupt Aerial Firefight Drops Over Cajon Pass North Fire (VIDEO)."

And now at the Washington Post, "Rogue drones a growing nuisance across the U.S.":

Rogue drone operators are rapidly becoming a national nuisance, invading sensitive airspace and private property — with the regulators of the nation’s skies largely powerless to stop them.

In recent days, drones have smuggled drugs into an Ohio prison, smashed against a Cincinnati skyscraper, impeded efforts to fight wildfires in California and nearly collided with three airliners over New York City.

Earlier this summer, a runaway two-pound drone struck a woman at a gay pride parade in Seattle, knocking her unconscious. In Albuquerque, a drone buzzed into a crowd at an outdoor festival, injuring a bystander. In Tampa, a drone reportedly stalked a woman outside a downtown bar before crashing into her car.

The altercations are the byproduct of the latest consumer craze: cheap, easy-to-fly, remotely piloted aircraft. Even basic models can soar thousands of feet high and come equipped with powerful video cameras — capabilities that would have been hard to foresee just a few years ago.

Reports began surfacing last year of runaway drones interfering with air traffic and crashing into buildings. But the problem has grown worse as drone sales have surged.

“I’m definitely getting much more concerned about it,” Michael P. Huerta, the head of the Federal Aviation Administration, said in a phone interview Monday. He said the FAA was particularly worried about a surge in reports of drones flying dangerously close to airports. The latest incident came Sunday, when four airline crews reported a brush with a drone on a flight path into Newark International Airport.

Huerta added that the recent interference by drones with California firefighters was “really a wake-up call for a lot of people. This kind of thing has got to stop.”

More.

Drones are an especially beneficial technology when used appropriately --- like in Seal Beach, where lifeguards use drones to prevent shark attacks --- but it's infuriating in cases like the Cajon Pass North Fire, where drone users forced firefighters to shut down operations.

Actually, though, the drone knocking out the homosexual rights activist at the Seattle gay parade is pretty beneficial too, heh.

New GDP Revisions Show the Worst Recovery in 70 Years Was Even Weaker

This should be the number one issue of the 2016 campaign. Republicans should bludgeon the Democrats to death with it.

At the Wall Street Journal, "The Six-Year Slough":

One measure of America’s lowered expectations is that so many economists cheered Thursday’s second quarter growth estimate of 2.3%. It’s a rebound from the first quarter slump! The consumer is resilient, net exports are up, the plow-horse marches on! All true, but those silver linings obscure the larger reality that six long years after the recession ended in June 2009 the American economy has become a slow-growth machine.

That’s the story underscored by the annual government revisions in historical GDP that accompanied the second-quarter report. The news, which most Americans have long felt in slow-growing wages, is that the worst expansion in 70 years has been even weaker than we thought.

The gnomes at the Bureau of Economic Analysis ran the numbers based on new data and analytical methods and downgraded the recovery since 2011 nearly across the board. From 2011 through 2014, the economy grew at a paltry annual rate of 2%, down from the previous estimate of 2.3%. This means the overall U.S. economy is smaller—with GDP slashed by $105 billion in 2013 and $71 billion in 2014 to $17.35 trillion.

Those numbers are abstractions, but another way to put it is that national income, corporate profits and personal income were all revised down. From 2011 through 2014, the average annual growth of real disposable personal income was slashed to 1.5% from 1.8%. That’s a giant cut in the standard of living.

Since the recession ended in June 2009, the economy has grown at an annual rate of about 2.1%. That’s 0.6-percentage points worse than even during the much-maligned George W. Bush expansion. Growth averaged more than 3% from 2003-2006, but the best growth during the Obama years has been 2.5% in 2010, and in both 2011 and 2013 it nearly slipped back into recession.

The nearby chart compares this expansion to the growth periods in the 1980s and 1990s, showing what might have been. Real GDP growth averaged 4.6% in the first six years of the Reagan expansion, and more than 3.6% a year in the first six years of the George H.W. Bush-Bill Clinton expansion (gaining speed after that). Had the current expansion been as robust as the average expansion since 1960, GDP would be some $1.89 trillion larger today, according to Congress’s Joint Economic Committee.

The slow-growth Obama era has given way to multiple explanations and excuses from the President’s economic advocates. They blame the hangover from the financial crisis (even six years later), foreign economic problems, the failure of government to spend and tax more, an aging population—anything but the policy differences between those previous eras and this one.

Leading lights on the left have even thrown up their hands to suggest we no longer really know what produces faster growth. Larry Summers calls it “secular stagnation,” as if it’s an illness we somehow caught. Others claim 2%-2.5% growth is about as good as we can now do, so get used to it—and keep interest rates at near-zero for as far as the eye can see.

This is a false counsel of despair, much as we heard similar advice in the malaise years of the 1970s. There’s no great mystery about why growth has been so slow. The natural dynamism of the U.S. economy has been swamped by waves of bad policies.

Unprecedented new regulation has hamstrung finance, health care, the coal and power industries, for-profit education, and so much more. Two of the biggest growth exceptions—tech and oil and gas—escaped this maw because drilling is regulated by the states and the FCC only got around to ensnaring the Internet in new rules this year.

Higher taxes—their anticipation and then the reality in 2013—slowed risk-taking and investment. Profits fell in the first quarter of 2013 thanks to the tax cliff, and growth for 2013 was a mere 1.5% after the latest revisions.

The Federal Reserve has tried to overcome all this with near-zero interest rates and bond-buying, and it has succeeded in raising asset prices that have further enriched those lucky enough to hold assets. But it hasn’t succeeded in lifting the economy out of its slow-growth trend, and the Fed’s own growth predictions have been revised down year after year...

Keep reading, and pay special attention to the comparative graphic on relative post-recession economic expansions. It's mind-boggling, the growth-killing collectivism of the current administration.

Mormon Temple in West L.A. Lets Front Lawn Turn Brown

Well, at least someone's getting in the spirit of Democrat Party water rationing.

Of course, folks at the Mormon Church aren't the ones calling for the big environmental regulations. They're just doing the decent thing to set an example.

At the Los Angeles Times, "Letting iconic Mormon temple lawn die was a 'difficult decision'."

And don't miss the Hollywood hypocrites, "Celebrities are now targets of California #DroughtShaming."

Also, from Doug Powers, at Michelle's, "Cher’d sacrifice: They don’t call ’em ‘green’ Hollywood libs for nothing."

Santa Barbara Fresh Market Closes: Will Shutter All Its Remaining Stores in California

Hmm...

And the state's economy is supposed to be picking up. Must be the disastrous regulatory environment, and in particular California's confiscatory tax regime.

There's a store in Laguna Hills as well. The company wanted to emphasize its growth strategy, and obviuosly the anti-business once-golden state wasn't going to fit with the plan.

At KEYT News Santa Barbara:

Path Clears for Net Neutrality Ahead of F.C.C. Vote

Lame.

At NYT, "As Republicans Concede, F.C.C. Is Expected to Enforce Net Neutrality":

WASHINGTON — Last April, a dozen New York-based Internet companies gathered in the Flatiron District boardroom of the social media website Tumblr to hear dire warnings that broadband providers were about to get the right to charge for the fastest speeds on the web.

The implication: If they didn’t pay up, they would be stuck in the slow lane.

What followed has been the longest, most sustained campaign of Internet activism in history, one that the little guys appear to have won. On Thursday, the Federal Communications Commission is expected to vote to regulate the Internet as a public good. On Tuesday, Senator John Thune, Republican of South Dakota and chairman of the Senate Commerce Committee, all but surrendered on efforts to overturn the coming ruling, conceding Democrats are lining up with President Obama in favor of the F.C.C.

“We’re not going to get a signed bill that doesn’t have Democrats’ support,” he said, explaining that Democrats have insisted on waiting until after Thursday’s F.C.C. vote before even beginning to talk.

“I told Democrats, Yes, you can wait until the 26th, but you’re going to lose the critical mass I think that’s necessary to come up with a legislative alternative once the F.C.C. acts,” he said.

In the battle over so-called net neutrality, a swarm of small players, from Tumblr to Etsy, BoingBoing to Reddit, has overwhelmed the giants of the tech world, Comcast, Verizon and TimeWarner Cable, with a new brand of corporate activism — New World versus Old. The biggest players on the Internet, Amazon and Google, have stayed in the background, while smaller players — some household names like Twitter and Netflix, others far more obscure, like Chess.com and Urban Dictionary — have mobilized a grass-roots crusade.

“We don’t have an army of lobbyists to deploy. We don’t have financial resources to throw around,” said Liba Rubenstein, Tumblr’s director of social impact and public policy. “What we do have is access to an incredibly engaged, incredibly passionate user base, and we can give folks the tools to respond.”

In mid-October, the technology activist group Fight for the Future acquired the direct phone numbers of about 30 F.C.C. officials, circumventing the F.C.C.’s switchboard to send calls directly to policy makers at the agency. That set off a torrent of more than 55,000 phone calls until the group turned off the spigot Dec. 3.

In November, President Obama cited “almost four million public comments” when he publicly pressured the F.C.C. to turn away from its paid “fast lane” proposal and embrace a new regulatory framework.

Since then, the lobbying has only grown more intense. Last week, 102 small Internet companies, including Yelp, Kickstarter and Meetup, wrote the F.C.C. to say the threat of Internet service providers “abusing their gatekeeper power to impose tolls and discriminate against competitive companies is the real threat to our future,” not “heavy-handed regulation” and possible taxation, as conservatives in Washington say.

On Feb. 5, the Mozilla Foundation, makers of the popular Firefox web browser, posted a pro-net neutrality banner just below its search window, proclaiming, “In just a few days, the web could change forever,” and imploring users to sign the firm’s petition; close to 300,000 have signed, said Dave Steer, Mozilla’s director for advocacy, who has helped mobilize Silicon Valley for Net Neutrality.

“This is not East Coast-West Coast thing. It’s not a for-profit company versus nonprofit thing. It’s all of us,” he proclaimed. “We came together under the banner of Team Internet.”

Republicans who had branded net neutrality “Obamacare for the Internet” have grown much quieter under the barrage.

“Tech companies would be better served to work with Congress on clear rules for the road. The thing that they’re buying into right now is a lot of legal uncertainty,” said Senator Thune, who warned that the F.C.C.’s new rule would face litigation from opponents and a possible reversal from a future, more Republican F.C.C. “I’m not sure exactly what their thinking is.”

More.

Economic Growth Slows to 2.6 Percent in Fourth Quarter

Click through especially for the graph on quarterly GDP since 2000. The fourth quarter of 2008 was almost negative 9 percent. Man, talk about a crash.

Here, "U.S. Economic Growth Slows to 2.6% in Fourth Quarter: GDP Underscores Obstacles Facing Recovery as Troubles Mount Abroad."

Humans Hit Hard by California's New Chicken-Coop Law, Especially the Poor

More on California's anti-human animal welfare law that's causing a shortage of eggs.

At the Wall Street Journal, "California’s Scrambled Eggs":

California has a way of living up to the worst regulatory expectations, as grocery shoppers across the country are discovering. The state’s latest animal-rights march is levying a punishing new food tax on the nation’s poor.

Egg prices are soaring in California, where the USDA says the average price for a dozen jumbo eggs is $3.16, up from $1.18 a dozen a year ago, and in some parts of the state it’s more than $5. The Iowa State University Egg Industry Center says retail egg prices in California are 66% higher than in other parts of the West. National wholesale egg prices also climbed nearly 35% over the 2014 holiday period, before retreating.

The cause of these price gyrations is an initiative passed by California voters in 2008 that required the state’s poultry farmers to house their hens in significantly larger cages. The state legislature realized this would put home-state farmers at a disadvantage, so in 2010 it compounded the problem by requiring that eggs imported from other states come from farms meeting the same cage standards, effective Jan. 1, 2015.

The new standards require cages almost twice the size of the industry norm, with estimated costs to comply of up to $40 a hen. That’s about $2 million for a farm with 50,000 chickens. Some farmers are passing the costs on to consumers, while others are culling their flocks by half for each cage.

Government statistics show that the number of egg-laying chickens in California has fallen 23% in two years. Many farmers outside the state are choosing not to sell eggs to California, leaving egg brokers scouring the country for cage-compliant eggs and paying top dollar to meet demand in a state that has imported more than four billion eggs a year.

This comes when egg demand is growing, in part because soaring meat prices have caused Americans to turn to other foods. Per capita consumption is expected to reach more than 260 eggs this year, the highest since 1983, according to the USDA. The poorest consumers have been hit hardest by the price spike because eggs have traditionally been a cheap source of protein.

California’s cage law is part of the nationwide animal-rights effort to raise the costs of animal food production in the name of more, well, humane treatment. Groups like the Humane Society of the United States failed to get Congress to pass national chicken-cage standards, so they turned to California to set what they hoped would be a de facto national standard because of the size of its market.

There’s a strong argument that this violates the Constitution’s Commerce Clause, which bars states from discriminating against interstate trade...

Still more.

And previously, "California Faces Egg Shortage as Far-Left Animal Welfare Law Takes Effect," and "Prices for Wholesale Eggs Expected to Rise 10 to 40 Percent in 2015 as California Animal Welfare Law Kicks In."

California Faces Egg Shortage as Far-Left Animal Welfare Law Takes Effect

Well, no one saw this coming, or anything.

Eggs will settle in anywhere from 10 to 40 percent higher "than they are right now." Happy chickens though!

At CBS News Sacramento, "New California Egg Law Prompts Egg Shortage Concerns as Suppliers Alter Facilities."

We Don't Need to Pay More Gas Taxes

From the editors, at the O.C. Register:

Some members of Congress – apparently intent on ensuring that no positive development in American life goes unpunished – have had a surprising reaction to the steep decline in gas prices that has taken place in recent months: It’s time to make fueling your car more expensive.

That’s the message coming from many Democrats and a handful of Senate Republicans – foremost amongst them Tennessee’s Bob Corker, who joined with Connecticut Democrat Chris Murphy to propose increasing the levy by 12 cents over two years and indexing it to inflation. Other members of the GOP – Sen. John Thune of South Dakota and Sen. James Inhofe of Oklahoma, for instance – have refused to rule out such a proposal.

We’re not unsympathetic to the underlying concern in this case. The federal gas tax – currently 18.4 cents per gallon – hasn’t been raised since 1993. That’s salient because the revenue from the tax goes to finance the Highway Trust Fund, the mechanism by which the feds fund transportation infrastructure projects. Without a doubt, these kinds of expenditures represent a legitimate use of public money.

Equally unquestionable is that there are serious problems besetting the fund. Current estimates have it facing a shortfall of $160 billion over the next decade. Moreover, much of the country’s infrastructure is in dire need of a facelift.

However, this is more than a question of simple economics. It’s a question as to how best to organize public finance. We believe that federal money ought only to be spent for truly federal purposes. On that front, the Highway Trust Fund falls short.

Originally organized to finance the Interstate Highway System – a genuinely federal project if ever there was one – the fund now suffers from severe mission creep. About a quarter of its revenues aren’t even spent on highway projects, going, instead, to decidedly local concerns like mass transit or bicycle paths. According to congressional testimony from the Cato Institute’s Chris Edwards, that spending adds up to about $9 billion a year.

As John Marshall observed, “the power to tax is the power to destroy.” That’s why we regard any proposal for higher levies with caution. We believe that tax increases are only ever justified when the federal government can prove three things: 1) That it is only spending public money on legitimate public purposes; 2) that it is not spending public money on tasks better left to state and local governments; and 3) that it is spending public money efficiently. The Highway Trust Fund fails on all three counts...

Raising gas taxes precisely as Americans get a break is particularly sleazy as well.

Still more.

Federal Judge Strikes Down California's Ban on Foie Gras

Well, for once a bit of decent political news out of California.

At the Los Angeles Times, "Foie gras can go back on California menus, judge rules":

Foie gras can go back on the menu.

U.S. District Judge Stephen V. Wilson issued a ruling Wednesday overturning California’s law banning the sale of the fatty goose liver.

“I’ve been jumping up and down for about 90 minutes,” said Napa Valley chef Ken Frank, who was not a party to the suit, but has been active in the pro-foie-gras movement.

Foie gras was outlawed in California by a bill that passed the state Legislature in 2004 and went into effect in 2012.

The ban had been challenged by the Hot’s Restaurant Group in California (which includes Hot’s Cantina in Northridge, Four Daughters in Manhattan Beach and Hot’s Kitchen in Hermosa Beach); Hudson Valley Foie Gras, a producer in New York; and a group of Canadian foie gras farmers called Association des Eleveurs de Canards et d’Oies du Quebec.

The judge ruled that the law was unconstitutional because it interferes with an existing federal law that regulates poultry products.

Last year, the courts rejected a different argument against the state ban -- that it improperly tried to regulate interstate commerce. But the new argument -- referred to by lawyers as “preemption” -- succeeded. The state could appeal Wilson’s ruling, but, for now, foie gras devotees can celebrate.

“Foie gras is legal in California and will be on my menu tonight,” said Frank, chef at La Toque restaurant. “I haven’t been without foie gras a single day since the ban went into effect, but tonight is the first time I’ve been able to charge for it.”

Frank had been sending diners complimentary servings of foie gras along with a glass of wine and a card explaining that “this is a gift and an act of political protest against a law we think is unwise."

“Tonight we’re going to tear the cards up and have a hell of a party.”

A coalition of animal rights groups, including the Animal Legal Defense Fund and the Humane Society, released a joint statement vowing to appeal. “The state clearly has the right to ban the sale of the products of animal cruelty, and we expect the 9th Circuit will uphold this law, as it did in the previous round of litigation. We are asking the California attorney general to file an immediate appeal."...

Yes, because no one hates a good, righteous food-loving party as much as tantrum-throwing leftists.

Still more.

It's Never a Good Time for a Carbon Tax

Amen.

California just got hit with a new "carbon tax," which is supposed to cost consumer an additional $2 billion a year. And it's basically a stealth tax, part of a "cap and trade" scheme that no one knows about.

We're taxed enough already.

But see the analysis at the Daily Signal, in any case.

Gas Prices Have a Way to Go to Be Historically Cheap

At the Wall Street Journal, "Why Gas Feels Cheap—and Why It’s Not, Historically Speaking: Recent Price Plunge Looks Good After Years of High Costs, but Fill-Ups Were Less Expensive From 1986-2003."

When my wife and I bought our Honda Odyssey van, in December 2001, gas was $1.19 a gallon. So yeah, prices have a way to go before they're that cheap. But historically speaking, the current low prices are pretty mind-boggling.

Obama's Regulatory Siege Holds Back the Economy

Well, in light of my last entry, "Can Robust U.S. Economy Lift Global Markets?"

(Keep in mind, the recent phenomenal U.S. economic performance is in spite of the Obama administration's FUBAR economic policies.)

At IBD, "Obama's Regulatory Siege Holds Back the Economy":

When it comes to costly regulations, Barack Obama is without presidential peer. We believe it's a big reason why the economic recovery from the financial crisis has been the worst ever.

According to data toted up by Competitive Enterprise Institute Fellow Wayne Crews, 2014 ended with 78,978 pages in the Federal Register, the government's regulatory bible. That's the fifth-highest ever. An improvement? Hardly.

As Crews notes, of the "six all-time-high Federal Register page counts, five belong to Obama." Counting the number of pages in the Federal Register is key, since it reflects the general level of regulation in the U.S. economy. In Obama's case, it indicates he's the most regulating president ever.

During the five years of his regulatory siege, the annual average of regulatory pages in the Register has increased by 8% over the preceding five years.

We're not picking nits here. Every rule that goes into effect has an economic impact. And many, if not most, have a negative economic impact — that is, costs outweigh benefits. It's an enormous cost to our economy.

Americans like to wonder why so few new businesses and new jobs are being created these days. Regulation is a big reason.

Still more.

Prices for Wholesale Eggs Expected to Rise 10 to 40 Percent in 2015 as California Animal Welfare Law Kicks In

The chickens should be treated decently, although remember, with progressives, everything they do forces higher costs on society. Everything. It never stops. Never.

At LAT, "Egg prices likely to rise amid laws mandating cage-free henhouses":

If your eggs seem a little pricier, consider the recent changes on Frank Hilliker's ranch.

In the last six months, the third-generation egg farmer in central San Diego County has reduced his flock by half and embarked on a $1-million overhaul of his henhouses to make them more spacious. Customers are now paying about 50% more for a dozen eggs from Hilliker's family business at around $3 a carton.

It's all to comply with a landmark animal welfare law that takes effect in California on New Year's Day. Voters overwhelmingly approved Proposition 2 in 2008 to effectively abolish the close confinement of farm animals in cramped cages and crates — a practice that animal advocates say causes needless suffering and boosts the likelihood of salmonella contamination.

But to ensure the well-being of California's 15 million laying hens, consumers will probably have to pay more for the supermarket staple. Prices for wholesale eggs are expected to rise 10% to 40% next year because of infrastructure upgrades and the reduction of flocks to provide animals more space, according to Dan Sumner, an agricultural economist at UC Davis.

Already, the specter of California's regulations are believed to be contributing to record prices for eggs. The average wholesale cost of a dozen large eggs hit a peak of $2 on Thanksgiving Day — doubling in price from the start of November before settling this week to about $1.40. It comes at a time when soaring meat prices are expected to help push U.S. egg consumption to its highest level in seven years.

Adding to the pressure is increased demand for U.S. eggs in Canada and Mexico, where domestic poultry and egg industries are battling bouts of avian flu.

"It's sort of a perfect storm," said Ronald Fong, president and chief executive of the California Grocers Assn., who doesn't expect a significant egg shortage next month, but is less clear about changes in retail prices.

California's rules are rippling beyond its borders. No state consumes more eggs — and about a third of its supply must be imported. Iowa, where laying hens outnumber people 2 to 1, sells about 40 million eggs a day to out-of-state buyers.

Under a separate bill signed by former Gov. Arnold Schwarzenegger in 2010, all shell eggs arriving from other states must also comply with Proposition 2 by Jan. 1, 2015.

That requirement set off a barrage of lawsuits, including one from six leading egg-producing states. Missouri, Alabama, Iowa, Kentucky, Nebraska and Oklahoma invoked the constitution's interstate commerce clause by arguing that California was interfering with their local egg industries. The suit, which was dismissed by a federal judge in October, is being appealed...

More.

Oil's Swift Fall Raises Fortunes of U.S. Abroad

Transformations of global petroleum politics underway.

I love it!

At the New York Times, "Oil’s Swift Fall Raises Fortunes of U.S. Abroad":

BRUSSELS — A plunge in oil prices has sent tremors through the global political and economic order, setting off an abrupt shift in fortunes that has bolstered the interests of the United States and pushed several big oil-exporting nations — particularly those hostile to the West, like Russia, Iran and Venezuela — to the brink of financial crisis.

The nearly 50 percent decline in oil prices since June has had the most conspicuous impact on the Russian economy and President Vladimir V. Putin. The former finance minister Aleksei L. Kudrin, a longtime friend of Mr. Putin’s, warned this week of a “full-blown economic crisis” and called for better relations with Europe and the United States.

But the ripple effects are spreading much more broadly than that. The price plunge may also influence Iran’s deliberations over whether to agree to a deal on its nuclear program with the West; force the oil-rich nations of the Middle East to reassess their role in managing global supply; and give a boost to the economies of the biggest oil-consuming nations, notably the United States and China.

It might even have been a late factor in Cuba’s decision to seal a rapprochement with Washington.

After a precipitous drop, to less than $60 a barrel from around $115 a barrel in June, oil prices settled at a low level this week. Their fall, even if partly reversed, was so sharp and so quick as to unsettle plans and assumptions in many governments. That includes Mr. Putin’s apparent hope that Russia could weather Western sanctions over its intervention in Ukraine without serious economic harm, and Venezuela’s aspirations for continuing the free-spending policies of former President Hugo Chávez.

The price drop, said Edward N. Luttwak, a longtime Pentagon adviser and author of several books on geopolitical and economic strategy, “is knocking down America’s principal opponents without us even trying.” For Iran, which is estimated to be losing $1 billion a month because of the fall, it is as if Congress had passed the much tougher sanctions that the White House lobbied against, he said.

Iran has been hit so hard that its government, looking for ways to fill a widening hole in its budget, is offering young men the option of buying their way out of an obligatory two years of military service. “We are on the eve of a major crisis,” an Iranian economist, Hossein Raghfar, told the Etemaad newspaper on Sunday. “The government needs money badly.” ...

In many ways, the recent price fall really is the United States’ work, flowing to a large extent from a surge in American oil production through the development of alternative sources like shale.

By offsetting declines in conventional oil production, increases in shale oil output have allowed overall American crude oil production to rise to an average of about nine million barrels a day from five million a day in 2008, according to the United States Energy Information Administration. That four-million-barrel increase is more than either Iraq or Iran, the second- and third-largest OPEC producers after Saudi Arabia, produces each day, and it has put strong downward pressure on world prices...

That's what I'm talking about!

Keep reading.

Despite Obama, Plunging Oil Prices Spur U.S. Economy to Stongest Growth in Decade

Just think how much stronger our economy would be doing if we had a pro-growth president.

At LAT, "U.S. growth is strongest in a decade":

The U.S. is rolling into the new year with impressive strength as plunging oil prices have ignited consumer spending and helped fuel the best stretch of growth in more than a decade — even as economies around the world are struggling.

A basketful of mostly upbeat economic data Tuesday pushed financial markets to record highs, with the Dow Jones industrial average breaking through the 18,000-point barrier for the first time.

Investors were spurred by a Commerce Department report that the U.S. economy expanded at a remarkable 5% annual rate in the third quarter, the fastest pace since 2003 and a far cry from the tepid growth that has plagued most of the recovery from the Great Recession.

"This is literally shoot-the-lights-out sort of stuff," said Chris Rupkey, chief financial economist at Union Bank in New York. "This economy is pretty much roaring."

And the third quarter wasn't a fluke.

Total economic output, also known as gross domestic product, expanded at a 4.6% annual rate in the second quarter. It marks the first time the economy posted back-to-back quarters of more than 4.5% growth since 2003.

Economists don't expect the torrid pace to continue. The fourth quarter will probably keep the positive momentum, but at a more modest 2.5% to 3%.

With gasoline prices plummeting, Americans are feeling the difference in their bank accounts. Consumer spending jumped in November as incomes continued to rise.

And with a leading measure of consumer confidence on Tuesday hitting its highest level since 2007, signs point to strong spending carrying into next year, economists said.

"The U.S. economy prior to the oil price decline was doing reasonably well. It was chugging along," said Brian Bethune, chief economist at Alpha Economic Foresights.

"Then we get an accelerator, which is the drop in oil prices," he said. "It's equivalent to a big tax cut — and the tax cut is getting larger."

Although oil prices rose Tuesday — partly because strong U.S. growth signaled increased demand — they have fallen nearly 50% over the last six months.

That's caused the average price for a gallon of regular to drop to $2.38 a gallon, according to AAA. That's down 15 cents in just a week and 87 cents from a year ago.

The savings at the gas pump have boosted consumer spending, which rose 3.2% in the third quarter. Those figures beat an earlier estimate, and rose from 2.5% in the previous quarter. A big factor was an increase in spending on healthcare.

Heh. I just love it when the economy defies the leftist program of economic stagnation.

More.

EARLIER: "U.S. Fuel Costs Drop to Historic Lows, Thanks to Shale Oil Boom — And No Thanks to Obama!"

Saudi Arabia Fears U.S. Shale Oil

At WSJ, "Why Saudis Decided Not to Prop Up Oil: In American Shale Oil, A Perceived Threat to OPEC Market Share":

In early October, Saudi Arabia’s representative to OPEC surprised attendees at a New York seminar by revealing his government was content to let global energy prices slide.

Nasser al-Dossary ’s message broke from decades of Saudi orthodoxy that sought to keep prices high by limiting global oil production, said people familiar with the session. That set the stage for Saudi Arabia’s oil mandarins to send crude prices tumbling late last month after persuading other members of the Organization of the Petroleum Exporting Countries to keep production steady.

Hard-hit countries like Iran, Russia and Venezuela suspected the move was a coordinated effort between the oil kingdom and its longtime ally, the U.S., to weaken their foes’ economies and geopolitical standing.

But the story of Saudi Arabia’s new oil strategy, pieced together through interviews with senior Middle Eastern, American and European officials, isn’t one of an old alliance. It is a story of a budding rivalry, driven by what Saudi Arabia views as a threat posed by American energy firms, these officials said...

Once again, I just love the news out on global energy markets. It makes the idiot global warming ghouls look more idiotic than they usually do --- and that's saying something.

More at the link.

Stocks Tumble After Weak Oil Forecast

At WSJ, "How Crude Oil’s Global Collapse Unfolded: Tracing the Plunge In Oil Prices Back to Texas":

Since the 1970s, Nigeria has sent a steady stream of high-quality crude oil to North American refineries. As recently as 2010, tankers delivered a million barrels a day.

Then came the U.S. energy boom. By July of this year, oil imports from Nigeria had fallen to zero.

Displaced by surging U.S. oil production, millions of barrels of Nigerian crude now head to India, Indonesia and China. But Middle Eastern nations are trying to entice the same buyers. This has set up a battle for market share that could reshape the Organization of the Petroleum Exporting Countries and fundamentally change the global market for oil.

On Friday, crude prices dropped to their lowest level in five years after the International Energy Agency cut its forecast for global oil demand for the fifth time in six months. That signaled to investors that the world economy would struggle in the coming year, sending the Dow Jones Industrial Average tumbling by 315.51 points, or 1.8%, to 17280.83. That’s the Dow’s biggest weekly percentage loss in three years.

Since June, the IEA has cut its demand forecast for 2015 by 800,000 barrels, while it says U.S. oil output will rise next year by 1.3 million barrels a day.

The drop in global oil prices from over $110 a barrel to under $62 on Friday has been portrayed as a showdown between Saudi Arabia and the U.S., two of the world’s biggest oil producers. But the reality is more complex, involving Libyan rebels and Indonesian cabdrivers as well as Texas roughnecks and Middle Eastern oil ministers. It reflects both the surging supply of crude and the crumbling demand for oil.

And the oil-price plunge may not end soon. Bank of America Merrill Lynch says U.S. oil prices could drop to $50 in 2015.

The roots of the price collapse go back to 2008 near Cotulla, Texas, a tiny town between San Antonio and the Mexican border. This was where the first well was drilled into the Eagle Ford Shale. At the time, the U.S. pumped about 4.7 million barrels a day of crude oil.

In 2009 and 2010, the global economy improved, demand for oil increased and crude prices rose, creating a large incentive to find new supplies. In Cotulla and elsewhere, U.S. drillers answered the call. “There was, for lack of a better term, an arms race for oil, and we found a ton of oil,” says Dean Hazelcorn, an oil trader at Coquest in Dallas.


Today, two hundred drilling rigs blanket South Texas, steering metal bits deep underground into the rock. Once drilled and hydraulically fractured, these wells yield large volumes of high-quality oil; at the moment, the U.S. is producing 8.9 million barrels a day, thanks to the Eagle Ford and other new oil fields.

Americans aren’t pumping more gasoline or otherwise using up all that new crude, and under U.S. laws dating back to the 1970s, it has been almost impossible to export.

As a result, American refineries snapped up inexpensive crude from Texas and North Dakota, using it to replace oil from Nigeria, Algeria, Angola and Brazil, and almost every other oil-producing nation except Canada.

OPEC sent the U.S. 180.6 million barrels in August 2008, a month before the first Eagle Ford well; in September 2014, it shipped about half that, 87 million barrels. That is about 100 fewer tankers of crude arriving in U.S. ports. They went elsewhere.

For a long time, it seemed like the world’s growing appetite for oil would soak up all the displaced crude. By 2011 prices began to hover between $90 and $100 a barrel and mostly stayed in that range.

But earlier this year, another trend began to come into focus, catching Wall Street energy analysts and other market watchers by surprise. In March, many analysts predicted global demand for crude oil would grow by 1.4 million barrels a day in 2014, to 92.7 million barrels a day.

That prediction proved wildly optimistic...

More.