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NEW CALLS TO DRILL IN USA AS GAS PRICES GET CLOSER TO $4
Eric Bolling: Exactly, drill here, drill now. Drill baby drill. Instead of making fun of drill baby drill as they did on Wednesday. It's not going to be wind mills. Contrary to what Dr. Heldman will tell us, it's the not solar panels, not geothermal, not switch grass or corn ethanol. None of those will bring it down other than promising to drill, and it won't happen overnight, but in the course of time. The prices will go down.
Caroline Heldman: We consume 25 percent of the global oil reserves and we only produce 3 percent and if we were to tax everything right now, everything, it would be 2 percent of total global reserves, which means that it wouldn't have any effect. It would enter the global market and would be lost and take three to six months for that to happen, so, Eric, you know it's not going to happen.
Tobin Smith: We have about $20 of price that's in fear. That's an emotional response. What if Saudi Arabia is taken apart? So the reverse of that is to show that in Anwar, we know is only basically 400 square miles out of 28,000 square miles of area we would drill. There is one to two million extra barrels into the pipeline. More important than anything else, it would change the psychology and people would know, the traders, the users, people would know that we're going to do something proactive and not going to sit here and pretend that we could have oil independents with switch grass.
Jonas Max Ferris: No, there's really nothing the government or anybody can do in the short run to dramatically lower oil prices, except that the government raised interest rates a lot tomorrow. You could sell the strategic petroleum reserves, but oil is high and the economy's recovering because of the low interest rate. Because of a lot of stuff going on globally and it isn't necessarily bad and I'm not sure we need a plan that's any more aggressive than now. The interior department just this week, included more drilling, more exploration, more permits and it will lower prices eventually a little bit when it comes online, but the prices are going to be higher and everyone needs a lot of oil and needs to run to China and that's what you get and I'm not sure it's a terrible thing, to have higher oil prices.
Gary B. Smith: Yeah, I don't know about you, Brenda. I paid over, well over $4 a gallon here in Potomac, Maryland of course always paying a higher start rate anyway, but the fact of the matter is, yeah, I think it's starting to hurt a lot of people. I've got to agree with Jonas on one point. Even if we do all the drilling I don't think it will make a difference tomorrow. That's not the point. The point is should we start drilling as aggressively as possible? Yes, we have the technology there. And Eric's point, we have 100 billion barrels available now and 700 billion in oil shale, in fact, we have more in oil shale, in oil equivalent than all of Saudi Arabia has in oil right now. So, it's there. I mean, Caroline would probably say we should invest in renewables, except to break even on that takes 20 years, could you imagine how the technology would change if we opened up places like Toby talks about, parts of Alaska to drilling, how that technology would evolve in 20 years? My gosh, we'd probably find so much more there and the price would plummet and we'd be leaps and bounds ahead of the Middle East oil producers and in the driver's seat.
NEW PUSH TO CUT MORE SPENDING TO CREATE MORE PRIVATE JOBS
Gary B. Smith: It's not just an opinion. You know me, Brenda. At the end of the day I look at what the numbers and the evidence says. Study after study has shown that the bigger the governments, in this case the more spending, the worse the economy does. In fact, the level is about 25-30 percent of GDP. The history in the United States, the period of most rapid expansion and job growth came when the government per share of GDP was smallest and look back in the times from the mid 80's to the late 90's, as a matter of fact, government was small and now it's been grown by exponential bounds and you've seen the resulting rise in unemployment. I think there's a direct correlation not only here, but across the world.
Caroline Heldman: We've had improving job numbers for months. Well before the three continuing resolutions passed which suggests something else is going on. What is going on? President Obama has passed small business incentives and when you look who is doing the hiring, small businesses have added five times the number of jobs with big companies, so it's clear it's the small business stimulus that's working here.
Tobin Smith: The reason why they're hiring on a number of these is because they cut the most the last two, three years and you have to put that in context and the bigger issue here is that the trend is changing. And yes, it puts a relatively small amount, but hiring is about, you know, sort of about animal spirits, about do you feel confident enough to your convictions to build your business to take some risk when the entrepreneurs see that finally, the behemoth government is starting to slow down and makes them feel that guess what, maybe I have a chance to make a business and spending.
Jonas Max Ferris: There isn't halls confidence which we talked about. You feel like you don't need the support of the government and hire people and do stuff, but just looking at the Presidents, you want to see the President during the GDP when he left office. Happened under Reagan and Clinton and those were good periods for jobs. One of the failures of the last Bush administration, spending went up dramatically and it really wasn't a great jobs period. I will say the reason Gary is overstating that a little bit, there is unemployment in a recession and in the existing programs you can't always blame it on the program.
Eric Bolling: Let's take a look back, 460,000 jobs created last month. A month before 194,000 Revised. What happened right before that? We extended the Bush tax cuts going forward and that has a lot to do with that. And small business as Toby points out is the job creators. Once they had the transparency going forward, they started to hire again.
Tobin Smith: It is confidence and we have reasons to take on Congress and create an environment where the small business person excels, remember they're reaching into their own wallets, not going to the bond markets. When you use your own cash, I've done this for 32 years, it may seem different and you feel that the behemoth is now slowly being taken care of.
UNIONS TO BOYCOTT WISCONSIN BUSINESS NOT POSTING UNION SIGNS
Tobin Smith: Yes, this is the buy-cot. You're threatened and you feel bullied and American people respond and before she got bullied. I mean, it sounds sort of silly, but this is exactly what our unions are still out of touch. Somehow, they feel that this bullying thing, you know, is going to help them build support among American citizens and guess what, as the decline of union jobs and unionization that happens in most industries, wealth has gone up. So mazel tov.
Caroline Heldman: This particular case, you know boycotts are the most American thing we can do and I'm happy to see that the market has spoken in another way, another way of consumer activism, but we had the American revolution and the Boston Tea Party and the Civil Rights union and Montgomery Bus Boycott and this is part of our American fabric.
Eric Bolling: I'm shocked that the Dr. Heldman said it's the most American thing you can do. It's the least American thing. The most American thing you can do is vote, and that's what the people of Ohio have done. And the people want to take the country back, the rubble pack and the unions are trying to bully them into not doing it. Good luck, guys, last ditch effort. Bye-bye unions, bye-bye, bye-bye.
Jonas Max Ferris: There's a way to do this right, with hitting the American consumer to not want to buy products made in foreign sweatshops, and go to union jobs, but they're picking fights and the American public can't understand what's going on and long-term they've done a very bad job and actually raising real issues to the labor force that they should be standing up for.
Gary B. Smith: I've got to go back to a point that Caroline made and makes an excellent point that I think paraphrase it, you know, unions are our last chance for our workers and they are, they're great for the workers until they eventually kill that industry. Just like in the steel industry, just like in the auto industry, the airline industry and killing the local municipalities with their pensions not willing to go on.
Tobin Smith: Hershey (HSY)
Jonas Max Ferris: Petrohawk Energy (HK)
Gary B. Smith: Master Card (MA)
Eric Bolling: InterContinental Exchange (ICE)