The Freedom Factory

We are moving closer towards a political economy every day. Every dollar borrowed, taxed, printed, and spent by government really comes from the private sector.  Trillions of dollars of national resources are being allocated by politicians and bureaucrats towards things they claim will benefit our economy. Congress just passed a $3.6 trillion budget ($1.2 trillion in deficit), and combined the Federal Reserve and Treasury have dumped $13 trillion into the economy in the last 16 months. What we must all ask ourselves right now is whether or not we trust government with our money? Continue Reading

Legendary investor becomes a farmer, U.S. obsession with reviving credit misdirected, Bernanke blames AIG for irresponsibility, and former Countrywide executives take advantage of government bailout programs…just the latest in your Freedom Under Fire Report! Continue Reading

Obama more popular that Jesus, follows through on tax cuts, Sen. Schumer chastises Americans for caring about earmarks, White House says it will cut deficit in half, of chimps and racism, decomposing the stimulus bill, Clinton tells Chinese to go Green, Latvia’s government collapses, and Iran blocks opposition on Web…just the latest in your Freedom Under Fire Report! Continue Reading

There is enough oil to satisfy human demand for at least the next hundred years. We are not at any risk of running out of supply. The problem is that getting it out of the ground is becoming increasingly difficult. The International Energy Agency (IEA) recently warned that price declines have triggered a sharp reduction in exploration and new field investment, which could cause significant future market imbalances.  This could have a big impact on your prosperity if you fail to insulate yourself, and could be a great profit opportunity for those with an appetite for risk… Continue Reading

Long energy and short financials has been a winning hedge fund trade this last quarter, but has since unwound. Oil has fallen nearly $30/barrel off it’s highs approaching $150/barrel, and financial stocks have been all the rage of late. Concensus is that, although we’re not in a recession, GDP growth is stagnant and markets are all over the place. How should a prudent investor approach today’s environment, particularly in dealing with energy? Continue Reading

This week Time magazine had an article about the advantages that go along with $4 gas. And since most news these days is bad, I’d thought I’d pass on some good news. Continue Reading

The airline industry has launched a lobbying campaign to force Congress to intervene in futures markets to stop oil “speculation.” They contend that financial contracts on oil are causing prices to spiral out of control. This is becoming an increasingly common public misconception, but since we live in a democracy and people have the opportunity to vote on topics for which they are entirely unqualified, it can seriously threaten to unravel the tremendous benefits futures markets bring. Continue Reading

On June 14th, the Financial Times reported that finance ministers from the world’s biggest economies (G8) disagreed with each other on the role of “speculators” in driving politically unacceptable energy prices. Today, the Associated Press adds Saudi Arabia to the list of country’s blaming financial markets for rising prices. The U.S. Energy Secretary declared that insufficient production was to blame for high oil prices, not the popular scapegoat, “speculators.” Perhaps both are right to some extent, but only if you properly define “speculator” to be our very own central bank!

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Just this last month, the Senate Judiciary Committee debased the integrity of our government and insulted the American people by harassing executives from some of the world’s largest oil companies. The premise of the hearings was that oil and petrol prices are high because of a global corporate conspiracy. Today, the Financial Times reports that a similar scapegoating effort is being directed by world leaders towards oil “speculators.”  Politicians are constantly on the hunt for quick answers to dumb questions, so let’s clarify a few things about the role of “speculators” in markets… Continue Reading