International energy subsidies in the early 1990s were anywhere from $235 billion USD to $350 billion USD a year, according to the World Bank. Since then they have only continued to grow, eating up government budgets and causing a disruption of free market forces. However, that was an era of cheap oil energy. That era is over.

Fuel subsidies are common practise in many countries around the world as governments seek to ease the pain of higher fuel and energy costs. Goldman Sachs estimates that about half of the world’s populations currently benefits from some sort of fuel subsidy. But by distorting fuel prices, fuel subsidies encourage fuel consumption and discourage the development and use of new alternative energy sources. As long as oil-derived energy is cheap, there is no incentive for other more costly forms of energy. The International Herald Tribune has an article today on the hidden costs of fuel subsidies.

Buckling under the weight of record oil prices, several Asian countries have cut or are thinking of cutting their fuel subsidies, which raises a pressing question for Beijing: Can China afford its own oil subsidies at a time when it is spending billions on post-earthquake reconstruction?

The short answer is yes, because China is blessed with both large trade account and fiscal surpluses. The reconstruction cost is projected to amount to about 1 percent of China’s gross domestic product, while the fuel subsidies account for another 1 percent, JPMorgan estimates.

So for China, the answer is yes. Blessed with both large trade and fiscal surpluses, China can afford to keep its economy humming and continue to invest in alternative energy development. Other countries, especially in Asia, are not quite so lucky and are facing increased budget deficits and slower economic growth. They are in a quandary. Many have large urban poor populations that depend on fuel subsidies for transportation to work and for cooking oil (kerosene) to live. Yet these governments depend on international financial markets for credit that frown upon government deficit spending.

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The ad from the Republican National Committee is entitled “Democrats on Obama.” They are not wasting any time in painting Obama as a danger, inexperienced and ultimately not fit to serve as President. This is painful because the arguments that many have laid out during the primary nomination process fell on deaf ears but they won’t come the Fall. It’s a different ball game now and Obama is still in the Pioneer League, he’s not even Triple AAA much less Major Leagues. Welcome to the next Democratic disaster!

View RNC Ad Number Two: Obama’s Résumé
View RNC Ad Number Three: Obama & Rezko

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This is more in the realm of a public service announcement because while I will not vote for Barack Obama, I have yet to decide how I will actually vote. My thoughts as of this writing is to run what is called a NOTA (None Of The Above) campaign and cast a blank ballot in November. I will not hide the fact that I think Obama very dangerous, both in his inexperience and in his views, much more dangerous than I think John McCain. Thus I will continue to lay out the argument as to why Senator Obama is a poor choice for President and the dangers he represents. I will provide information on how to vote none of the above as the Summer and the campaign unfolds.

Hillary Clinton Supporters for John McCain

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We entered the Age of Oil in 1859 and now on the eve of that sesquicentennial, it is clear that the Age of Oil approaches its end within the course of another human lifetime but thankfully not mine. I wouldn’t want to be around for the end of the Age of Oil. It’s going to be a bloody mess. There is no subsitute for oil. Parts of it can be replaced by sources of energy and parts of it cannot be replaced by any known substance. But even if we could replace oil with another magic elixir, it is likely that we can not replace it in sufficient quantities nor as inexpensively to propel humanity to the lifestyle to which it has been accustomed.

We take so much for granted. We believe it our birthright to hop in a motor vehicle and have it deliver us to our destination of choice at speeds of up to 75 miles an hour. What’s more we can we traverse the planet in comfortable (well at least on international flights these days, domestic not so much) jetliners that take us from continent to continent in hours. In short, oil conquered the tyranny of distance for humanity, well at least for the better part of what now looks to be a century-long human enterprise in human prosperity, hedonism, excess and waste that wasn’t even shared by all though it certainly made all our numbers possible. Oil changed everything, it made us what we are today. This is the Age of Oil.

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Sexism is a cottage industry, apparently. In May, Lynette Long writing in the Baltimore Sun had this to say about painful lessons learned this primary season:

• People are more sensitive to racism than sexism. My twenty-something daughter returned home extremely agitated after casting her ballot in the Democratic primary. “This white guy was wearing a T-shirt that read, ‘Hillary, cook my food, but don’t run my country,’ and no one said a thing. If I wore a T-shirt that said, ‘Obama, shine my shoes but don’t run my country,’ I’d be called a racist.” Doing or saying anything perceived as racist is not tolerated in today’s America, but that’s simply not true of sexist behavior.

Two stores in the Castro of San Francisco sell the above t-shirt. Needless to say, they have lost my business and they will get a letter to that effect. Lynette continues: (more…)

In the US, the Gini Coefficient has now fallen to .466. The Dutch Gini Coefficient is .309 or about the level of Japan in the chart. Sweden has the lowest Gini Coefficient at .230. The higher number the more socially unequal a society is.

The Netherlands may be small and compact but when it comes to the world economy, it is a major player. The Netherlands boasts some of the world’s leading companies–Royal Dutch Shell, personal and household consumer products giant Unilever, retailer Ahold (they own Stop n Shop, Giant and US Foodservice in the United States), consumer electronics products multinational Philips Electronics, the financial giant ING, banking behemoth ABN-AMRO, brewer Heineken, chemical giant AZKO Nobel, INGKA Holding B.V (the parent of Swedish founded but Dutch-owned IKEA) and The Nielsen Company (yes, the Nielsen ratings are Dutch owned) are all Dutch firms. In 2005, the Dutch economy ranked 16th in the world, with a GDP of €505 billion. Despite running world-class companies, Dutch CEOs are paid on average only about a quarter of what US CEOs make. And the Dutch have come to believe that that is too much. And so Dutch citizens are pressing lawmakers to do something about it.

The Dutch parliament is now likely to enact into law legislation that will heavily tax American-style executive windfalls — and maybe set some European precedents. Other European nations and policy-makers not to mention citizens are already taking notice. Earlier this month, in Brussels, European Union finance ministers “applauded” Wouter Bos, the Dutch finance minister who’s leading his nation’s charge against executive excess. Luxembourger Prime Minister Jean-Claude Juncker, called the “bloated payouts” going to corporate executives “a social scourge.” Nicolas Sarkozy in France has tossed around a plan to limit CEO compensation as well.

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No surprise here. He has hinted at such for months.

“The fact is the Obama people already know they have my vote when the polls close tonight,” Carter told The Associated Press after speaking at the Georgia World Congress Center Tuesday afternoon. Carter, a superdelegate, has remained officially neutral in the race but has offered strong hints that he would end up in Obama’s corner. He has noted that his children, grandchildren and their spouses back the Illinois senator.

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Here is the Wednesday, June 4th, 2008 edition of interesting reads from around the world.

Censorship in the Sudan
Reporters Without Borders condemns the methods being used by the Sudanese government to censor Khartoum-based newspapers. In the latest case, early on 2 June 2008, members of the Sudan People’s Liberation Movement (SPLM) - the political wing of the former rebel group in the south that is now part of a unity government - participated in a raid on the privately-owned Arabic-language daily “Ajras Al-Huriyya”. More from All Africa.

Nepal Without a Head of State
In their haste to abolish the 240-year-old monarchy and declare a republic, Nepal’s lawmakers ignored important procedural matters that could be challenged in the courts. There is now widespread concern that the vacuum created following the departure of the king will not be easily filled. Similarly, the future of the United Nations mission to the country hangs in the balance. The full story from the Asia Times.

Unpopular at Home, South Korea’s President Lee Headed to Beijing
South Korean President Lee Myung-bak’s visit to China is seen as an uptick for bilateral relations and a positive sign for the region. Beijing’s concerns about Lee’s tilt towards Washington and Tokyo have been relieved, but problems remain, such as increasing nationalism in both countries and, as always, the North Korea nuclear issue. The Asia Times has the details.

The Demise of Ford F-150 Truck
Long the most popular heavy duty full size pick-up truck in the United States, sales of the F-150 are sagging. Angry Bear has more.

“More Buses, More Trains, More Light Rail”
The stupidity of Robert Reich holds no bounds but now he has seen the light with gas at $4.00 a gallon. Today he writes on the need for more buses, trains and light rail on his blog. He starts off by saying:

I’ve never been a big one for buses or subways. I’ve never been able to organize myself around their schedules, at least when it comes to getting to work.

That’s the problem Robert you’ve never been big on common sense. You’re another effete liberal with no stature who claims he champions the urban poor but when you were in a position to do something about mass transit, you did nothing. And now that gas is $4.00 a gallon and you’re walking to work, you’re upset? Get a clue, you’re an economist and a tiny bit influential at that. Peak oil is not a new phenomenon, we have been warning about the reality we now confront for years. Go have another latte and leave the energy policy to those of us who have argued for rational mass transit strategy for years.

Gordon Brown Lacks the Midas Touch
In 1999, Gordon Brown serving as Chancellor of the Exchequer made one rather poor decision. Gordon Brown’s choice of that year to start selling off Britain’s gold reserves with the precious metal’s price close to an unprecedented low is well documented. What is less well known is that 1999 marked the peak for North Sea oil production and - by an unfortunate twist of fate - the very nadir of the oil price. The UK Telegraph tells the tale of Brown’s less than golden touch.

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