Senator Jon Kyl: Let's Get Back to a Strong Dollar!

May 12th, 2008, U.S. Senate. Senator Jon Kyl [R-AZ] gets to the heart of the energy problem: "The Federal Reserve needs to refrain from reducing interest rates further. Our currency is the foundation for our economy. Without a strong dollar, our economy will not be able to achieve the stability that is necessary to control oil prices for the economy."

Finally someone other than Ron Paul gets it.

Fake politicians like Senator Bernard Sanders [I-VT] spend their precious time in the Senate reading heartbreaking letters from Americans that can't keep up with the cost of living, only to blame oil companies, foreign cartels, overpaid CEOs and shady speculators for the high prices. IT'S THE FALLING DOLLAR, STUPID! Time to ring the Fed? You can ring Ben's bell, Senator Sanders.

As to drilling in the Artic, having a comatose dollar with no end at sight and a gigantic Government burning oil like there's no tomorrow, drilling now would be a disaster in more than one sense. Representative Roscoe Bartlett [R-MD] knows about it, be sure to keep that natural reserve.

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(Transcript)

Mr. President, tomorrow we are going to be voting on a couple of different bills, one of which was discussed by my colleague from North Dakota. The other is called the Domenici bill for the senior Senator from New Mexico.

I believe that while the Domenici bill does not answer all of the questions with regard to energy production, it is a very good start because, first and foremost, it addresses the production side. We know there is a huge demand and not enough supply of energy. In many respects, the Domenici bill seeks to remedy that imbalance and provide for more production.

In the last 30 years, U.S. consumption of oil has grown moderately. Our dependence on foreign oil has doubled to more than 13.4 million barrels per day, but our domestic production has remained relatively flat. Whether oil is purchased domestically or from foreign sources, we are feeling the negative effects of high prices more than ever.

We have to do something to help bring down the price of oil and gas at the pump, and today's average was $3.78. What the Domenici amendment does is open up new production, for example, 2000 acres of the 19 million acres of the Arctic Plain which was specifically designated for oil and gas leasing so that with its new environmentally sound directional drilling, very low footprint, at least a million barrels of oil could be made available, roughly 1 million barrels a day for 20 years. That would make a big difference. It also allows that States on both the Atlantic and Pacific could petition the Federal Government to opt out of the current broad moratorium on drilling and, in a responsible, environmental manner unlock potentially millions of barrels of crude oil.

The Domenici amendment streamlines and consolidates the refinery permitting process since frequently that is the bottleneck in getting refined gasoline to the consumer. It eases difficulties usually encountered when they want to build or expand refineries. We haven't built a new refinery in about 30 years.

The amendment suspends delivery to the SPR, echoing comments of my colleague from North Dakota. This is not a magic bullet. Simply not buying some oil and putting it in the SPR, while it won't hurt anything and might actually help a little bit, is a very modest proposal and does nothing to actually add to the supply of energy. But the Domenici amendment includes this provision as well. It is not going to do any harm, and it could do some good. The amendment also allows for the long-term procurement of synthetic fuels by repealing section 526 of last year's energy bill which placed certain emissions requirements on Air Force fuels, for example, and repeals a provision of last year's bill that stipulated a moratorium on oil shale development. U.S. domestic oil companies are doing a lot of research into the potential for shale converted to oil. If we were able to accomplish this, we could produce much more oil in the United States as a result.

(...)

[ http://www.c-spanarchives.org/congress/?q=node/77531&id=8565794 ]

Category:

News & Politics

Tags:

• jon
• kyl
• strong
• dollar
• federal
• reserve
• oil
• energy
• ron
• paul
• constitution
• liberty
• usa
• election
• 2008

[jaralero]

John F. Kennedy, President of the U.S., before the International Monetary Fund, Washington D. C., Sept. 30, 1963:

"We are determined to do whatever must be done in the interest of this country and, indeed, in the interest of all to protect the dollar as a convertible currency at its current fixed rate. We are determined to maintain the firm relationship of gold and the dollar at the present price of $35 an ounce, and I can assure you will do just that."

SURE! ;D

$925/oz and going up.

[jaralero]

I don't know how the American Geological Institute calculates their $65 a barrel figure. Had the dollar hold its 2001 exchange to the Euro, the barrel of oil would cost now about $58-$60 (with a similar inflation rate). Having in mind that the cost of gold/oil is identical, with a low inflation rate the price of oil would have not reached the $50s in seven years.

That doesn't deny the importance of looking for oil alternatives, oil is coming to an end, it shows that it's all about INFLATION.

[jaralero]

It is urgent that the U.S. starts rising interest rates and cutting spending [Ron Paul's platform]. Because the name of this debacle is RUNAWAY INFLATION.

Year 2001,

$1 = 1.21 Euros

1 barrel of oil = av. $29

1 barrel of oil = av. 35 Euros

1 oz. of gold = av. $260

1 oz. of gold = av. 275 Euros

1 oz. of gold = 8/10 barrels of oil

[jaralero]

Year 2008 (after 2001 Fed's interest rates fell to 1%)

$1 = 0.62 Euros

1 barrel of oil = av. $120

1 barrel of oil = av. 70 Euros

1 oz. of gold = av. $920

1 oz. of gold = av. 585 Euros

1 oz. of gold = 8/10 barrels of oil

American Geological Institute: "Oil would be now about $65/barrel [inflation added] if the dollar had stayed strong."

The absolute price of oil has remained pretty stable, it is the value of the dollar that has sunk to an all time low.

[truthsabre7]

The system is broken. So broken that the will to do the right thing has evaporated. We have the oil, we cannot conserve our way out of the oil problem. Like money when your short get some more.

[jaralero]

If red ants bite you and you ask the druggist for a mosquito repellent, you are not going to stop 'em no matter how hard you try. You can conserve your way out of the oil problem, according to R. Bartlett that is what you should do if you have any clue of the PROBLEM that you are facing in 20 years. The issue now is that your Government is debasing your dollar to pay for things it cannot have, lowering interest rates like crazy. If you keep looking for mosquitoes, then God wants your extinction.

[majikninja07]

jfk signed a presidential order that the treasury could print "dollars" backed by gold and silver which has never been taken up by democrat or republican presidents..

[Eli3333333]

We need our money to be Gold Backed like the forefathers wanted it.

[talktal]

within a year all this demand has come up to double the price of oil? do you see gasoline rationing across china and the united states? yes, demand is going up, but any analyst will tell you the price of oil is defying the rule of supply and demand.

[gbm322]

It is urgent that the US starts switching to second generation biofuels (cellulose), unconventional gas-powered vehicles, and plug in hybrids and massive investment in nuclear and wind and solar energy.

[gbm322]

Its not manipulation. Its supply and demand. Demand for oil is roaring ahead in all parts of the world; Russia, India, China, Brazil, Middle East, Southeast Asia, Korea, even Africa. Supply is stagnant. So demand need to meet the supply and the only way that is going to happen is higher and higher prices.