Maybe this is a stupid question

Has anybody checked those salt domes in Louisiana to see how they’re doing? And doesn’t it seem kind of stupid to put all of your strategic reserve of anything along one coast or border? All the eggs in one basket, as it were.

DOE – Fossil Energy: The Nation’s Strategic Petroleum Reserve

The Strategic Petroleum Reserve (SPR) is the world’s largest supply of emergency crude oil. The federally-owned oil stocks are stored in huge underground salt caverns along the coastline of the Gulf of Mexico.

Fed engineering a recession…again?

The 10-year Treasury note yield is at 4.03 percent.

The 30-day T-bill rate is at 3.51 percent.

The Fed is expected to raise its federal funds target rate, which T-bills will track closely, by 3/4 percent by years end. The “best case” speculation by Fed watchers is that they might skip the expected September increase and only raise rates by half a percent.

So, the best case is a completely flat yield curve assuming long term rates don’t react by dropping further, as is likely. The more likely case is that the Fed will raise rates 3/4 points and we will see an inverted yield curve. The yield curve where it is today shows serious danger of recession. An inverted yield curve is a near flawless predictor of one. We’re already working our way past “soft landing.” Alan Greenspan knows that, but he has such a fetish for restraining “exuberance” at all costs, rather than simply keeping money supply properly in check to start with, that the engineering of a recession for later this year or early next appears to be a done deal.

Levees should be privatized

Private companies do better work. If the levee breaks they would be responsible for the damage that resulted instead of just going on TV and crying. Undoubtedly they’d carry liability insurance to cover themselves. I have no idea how you’d pay for privatized levees, but that’s a minor issue.

My mama always taught me that good things come from adversity if we put our faith in the Lord.
We couldn’t see much good in the flood waters when they were causing us to have to leave home,
But when the water went down, we found that it had washed a load of rich black bottom dirt across our land. The following year we had the best cotton crop we’d ever had.
I remember hearing:
How high’s the water, mama?
Two feet high and risin’
How high’s the water, papa?
Two feet high and risin’
We can make it to the road in a homemade boat
That’s the only thing we got left that’ll float
It’s already over all the wheat and the oats,
Two feet high and risin’
How high’s the water, mama?
Three feet high and risin’
How high’s the water, papa?
Three feet high and risin’
Well, the hives are gone,
I’ve lost my bees
The chickens are sleepin’
In the willow trees
Cow’s in water up past her knees,
Three feet high and risin’
How high’s the water, mama?
Four feet high and risin’
How high’s the water, papa?
Four feet high and risin’
Hey, come look through the window pane,
The bus is comin’, gonna take us to the train
Looks like we’ll be blessed with a little more rain,
4 feet high and risin’
How high’s the water, mama?
Five feet high and risin’
How high’s the water, papa?
Five feet high and risin’
Well, the rails are washed out north of town
We gotta head for higher ground
We can’t come back till the water comes down,
Five feet high and risin’
Well, it’s five feet high and risin’

Jude Wanniski dies August 29

Wanniski.com

Mr. Wanniski was an adviser to President Ronald Reagan from 1978 to 1981, and designed the Reagan tax cuts that propelled the U.S. economy out of stagflation and led to the great stock market boom that followed. As an advisor, he counseled Democrats as well as Republicans, pro bono, and developed pro-growth strategies for several governments. He believed in the collective wisdom of the electorate. “The electorate, being wiser than any individual in the society, is society’s most precious resource. It is the job of the politician to try to divine what it is the electorate wants.”