Some Democrats Shifting on Drilling?
Is Congressman Jim Himes (D-CT-4) starting to get the message on domestic energy independence? According to one recent set of comments and a strong message from some of his constituents, he just may be.

http://hotair.com/archives/2011/02/28/some-democrats-shifting-on-drilling



 

NY Times Blows Story on Drilling “Dangers” 
 
File this article under the heading of one more attempt to prevent the development of any domestic energy supplies unless they fit in with the green /renewable energy agenda. And that’s the same agenda which, while it may serve a great purpose in the future, still can’t finance itself without massive government subsidized support.
 
http://hotair.com/archives/2011/02/28/ny-times-blows-story-on-drilling-dangers/


Saudi Arabia Is Lying About Being Able To Increase Its Oil Production

"Saudi Arabia has been lying about the reserves for decades. Saudi Arabia the last two times said they are going to increase production and they couldn't increase production. Don't fall for that. The reason oil is going up is the world is running out of known reserves of oil."

http://www.zerohedge.com/article/jim-rogers-saudi-arabia-lying-about-being-able-increase-its-oil-production




US Freezes $30 Billion In Libyan Assets (The Bulk Of Which Originated In The US And Europe)

The US crackdown on its former business partner continues, with the US Treasury announcing it has "located and frozen" at least $30 billion in Libyan assets " as it seeks to deprive embattled leader Moammar Gadhafi of access to government and personal accounts, a department official said."

[It is unclear] whether the US Treasury, which has to rely on a Ponzi check kiting game with the Primary Dealers to fund itself, and, of course, on the Fed to monetize its debt issuance, would confiscate any of this amount.

Does this lower the national debt by $30B?  Or will they just spend it in QE3?

http://www.zerohedge.com/article/us-freezes-30-billion-libyan-assets-bulk-which-originates-us-and-europe



Libyan Rebels Allow Oil Out of Country

Libyan rebels pressed the regime of Col. Moammar Qaddafi Sunday, taking control of a key city near the capital of Tripoli, declaring a provisional government and allowing oil shipments to resume from territory under their control.

The turmoil across the Middle East, cradle of much of the world's oil production, has sent prices soaring. Last week, crude oil for April delivery on the New York Mercantile Exchange rose $8.17 per barrel, or 9.11%

The Arabian Gulf Oil shipment would be the first oil exported from the eastern territory in more than a week—the last left on Feb. 19, before much of eastern Libya had slipped out of government control.

http://www.foxnews.com/world/2011/02/28/libyan-rebels-allow-oil-country


No Oil Price Shock Yet?

Libya’s output is about 2% of worldwide oil production. If Libya’s oil fields get knocked offline, it would be a tiny hit, equal to only about half of the smallest of the top five oil price disruptions in the last sixty years. Here are the five oil shocks:

Suez Crisis, Nov. ‘56 - Lost 10% of output
OPEC embargo Nov. ‘73 - Lost 7.5%
Iranian Revolution Nov. ‘78 - Lost 7%
Persian Gulf War Aug. ‘80 - Lost 9%
Venezuela unrest, Gulf War II, Dec 2002 - Lost 4%
** in 2008, it was due to surging global demand for oil.

[The] rule of thumb [is] that a $10/barrel increase in the price of crude oil translates into a 25 cents per gallon increase in the price consumers will eventually pay for gasoline at the pump.

it is natural to fear that this latest oil shock may be enough to kill the global economic recovery. But oil prices would have to rise much further, and persist for much longer, for these fears to be justified.

http://www.foxbusiness.com/markets/2011/02/25/oil-price-shock


Today's Precious Metal Close

Silver pits close at 1:25 pm, just as the dump in silver peaked. Gold followed suit, with its 1:30 pm close. This blatant attempt to dump PMs into the pit close and have silver and gold end trading on the books near the lows of the day merely confirms that "someone" is truly desperate to avoid an avalanche of margin calls. Of course, this uber-cheap trick works at best for a day or two.

http://www.zerohedge.com/article/todays-precious-metal-close-banging-moment-brought-fine-people-comex




The Market Is Telling Us That The Dollar Is Finished

There is no shortage of turmoil right now… yet we are seeing the dollar get clobbered while gold, silver, and smaller currencies like the Swiss franc rise. This represents a major shift in the way that the market views risk. The market is telling us that investors are washing their hands of the dollar as a safe haven asset.

Foreigners will swoop in and mop up US inventory long before [the dollar becomes too cheap].  Foreign governments will manipulate their own currencies in order to avoid missing out on a 300 million-strong consumer market.

http://www.zerohedge.com/article/simon-black-market-telling-us-dollar-finished