{"id":22582,"date":"2005-05-06T01:01:01","date_gmt":"2011-05-19T06:55:05","guid":{"rendered":""},"modified":"2011-05-19T06:55:05","modified_gmt":"2011-05-19T06:55:05","slug":"our_best_days_are_ahead_of_us","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2005\/05\/06\/our_best_days_are_ahead_of_us\/","title":{"rendered":"Our Best Days Are Ahead of Us"},"content":{"rendered":"
\n

RUSH: Here\u2019s Larry in Ferndale, Michigan — I have not applied. I\u2019m not a rejected applicant. Larry, welcome to the program. Nice to have you with us.<\/line>CALLER: Why, thank you. First of all I\u2019m a retired environmental engineer that worked for the auto industry, but in one of the more current editions of Scientific American, there is an article on how farming, which started thousands of years ago, led to global warming.<\/line>RUSH: Yeah?<\/line>CALLER: It started when man started to farm. I can\u2019t believe it. I\u2019m about ready to cancel my subscription to Scientific American. <\/line>RUSH: I wouldn\u2019t blame you if you did that. If I had a subscription to Scientific American not only would I cancel the subscription, I\u2019d burn past issues and contribute to global warming.<\/line>CALLER: (Laughing.)<\/line> RUSH: No, seriously, it\u2019s nothing more than a political movement, folks. All this global warming business, it\u2019s gotten to the point now that it\u2019s absurd. It was just, what, six weeks ago some story came out, a new group over in Great Britain, “It\u2019s too late, there\u2019s nothing we can do. Even if we started today we can\u2019t stop global warming!” Okay. Well, the obvious question is, “If we can\u2019t stop it, how the hell can we cause it?” The presumption is that we cause it by virtue of what we\u2019re doing, and so we\u2019ve got to stop doing what we\u2019re doing which causes it, that will decrease the incidence, “Oh, no, no, no, there\u2019s nothing we can do, it\u2019s too late.” Well, then we can\u2019t be causing it. Now this. We\u2019ve done such an bang up good job of cleaning up the atmosphere, the atmosphere is cleaner than ever, the air up there more transparent than ever – that\u2019s going to lead to global warming. Now, up till this time it was pollution in the atmosphere that was going to cause global warming. So what this to me represents is utter panic because I don\u2019t think these people are having the success they wanted to have or believe they needed to have. It must be their fund-raising is declining, it must mean donations are down, something. I mean, it\u2019s got to the point now where it\u2019s patently absurd. Mike, Lockport, New York. You\u2019re next, and welcome to the program. Open Line Friday rolling on. Hello.<\/line>CALLER: How you doing, Rush?<\/line>RUSH: Good, thank you.<\/line>CALLER: Hey, one fact you didn\u2019t mention on the causes of global warming, which I think is probably the biggest one, is deforestation and that\u2019s not something that happens in this country, it\u2019s mostly Third World slash-and-burn kind of farming. You talked about exporting capitalism, and I think that\u2019s going to make the problem worse because the real pressure on oil prices is new markets in India and China. And I also wanted to ask you about the energy bill, because the way I understand —<\/line>RUSH: Wait, wait, wait, hold it a minute. We\u2019ve got to discuss these things as you roll them by.<\/line>CALLER: Okay.<\/line><\/p>\n

RUSH: What I just heard you say is we cannot export capitalism because it will improve people\u2019s lives and they\u2019ll have cars and they will then put pressure on oil, the demand for oil will go up, the price will go up, we\u2019ll be polluting the skies more and so forth and that\u2019s bad for global warming. So what I hear you saying is some people just have to sit there and wallow in garbage?<\/line>CALLER: No, I didn\u2019t say that. I think we should export capitalism but it\u2019s going to have effects, and the big effect is going to be tighter energy supply and prices of oil are going to go up with new markets.<\/line>RUSH: I disagree. I think we\u2019re going to find all kinds of oil deposits all over the planet, and —<\/line>CALLER: Yeah, but we can\u2019t keep up with demand now. That is why the prices are going up. We can\u2019t pump it fast enough.<\/line>RUSH: Yes, we can. You know something? What you ought to do, this is an interesting thing, folks, go look at the government\u2019s report on inflation, the consumer price statistics — it\u2019s the index, it\u2019s a whole report, though, where they report — do you know what the price of oil that the government is paying for, in this country, do you know what the price per barrel is? The actual price per barrel for oil right now as listed in the latest government report on inflation in this country is 37 bucks a barrel. Now, how many of you people have heard that it\u2019s 50, 55, 49, 48, coming down? Let me tell you what\u2019s going on. That\u2019s the futures market, that\u2019s the future price for oil, people are speculating in it. The future price. Now, oil is going up in price, there\u2019s no question. But the price — it\u2019s no different than when — something that really bugs me, as an investor, you have all these Wall Street analysts. At the end of every quarter company A or company B will not meet its projected earnings. Some analyst will go on TV, “This is really a bad sign, I recommend a massive sell,” blah, blah, blah, blah, and you have all of this economic and market activity based on the words and actions of speculators. <\/line>Now, the price of oil is certainly high, but the futures market is what\u2019s causing the volatility in price. Yeah, there is some depression on supply. We also have a refining problem in this country as well. We really couldn\u2019t refine any more if we were able to import more, even if we were able to produce more. We\u2019re going to have to do something about that, either that or have it refined in other countries and import that, which — as gasoline which is not the host desirable thing but need may require that to happen. We just had stories last week, Mike, there is more oil being discovered in the Gulf of Mexico, it\u2019s down deep, we have so far, we\u2019re down 10,000 — we\u2019ve got an oil rig that\u2019s dug down 10,000 feet. When it becomes profitable to bring oil up from those depths we\u2019ve got more oil than we know what to do with throughout the world. Capitalism will not cause problems, capitalism will only increase living chances, opportunities, lifestyles for all kinds of people. <\/line>BREAK TRANSCRIPT<\/line>Two e-mails here, both from subscribers at RushLimbaugh.com<\/a>. The first one is from Adam Fellmeister. “Hey, the spot price of oil is over $50, people buying it for under 40 is because of futures they bought in the past when futures were that cheap. What you\u2019re saying is totally wrong.” I\u2019m just giving you the price that the government says contributed to the latest inflation right and the latest CPI report, whatever it is. The price of oil is 37 bucks per barrel. I\u2019m not saying that that\u2019s what the current price of oil is at the moment. My basic point is that the futures market is dictating this wild swing in prices, not a wild swing in supply. The supply is not being affected as rapidly as this price per barrel is going up and down. That is the futures market doing it and all I\u2019m trying to tell people is keep a sharp eye. The second e-mail. “Rush, you\u2019re right. Recent high prices are the result of big money funds going long in oil futures and OTC futures which relates to futures. Pitty that the liberal politicians dishonestly try to paint another picture in an attempt to misinform the public to advance their own agenda. Thanks, Paul Rogers, a professional oil trader.” So, a professional oil trader backs me up, says I\u2019m right. Recent high prices are the result of big money funds going long on oil in the futures market and the OTC futures, which relates to futures. That\u2019s all I\u2019m saying. It\u2019s all I\u2019m saying is that the futures market which is basically people speculating what the price is going to be in the future, they\u2019re bidding it up thinking it\u2019s going to be higher or lower, whatever, so they can go longer or short in it, hoping to make a buck on it. And it\u2019s affecting the price at least as much, if not more so, than the daily supply is. <\/line> All right, now this last caller that we had, Mike in Lockport, New York, and don\u2019t misunderstand, he was a nice guy, but he was reacting to something I said earlier on the program about spreading capitalism as a means– it all got started in this global warming talk today if you\u2019re just joining us. Some bunch in Science magazine, two researchers say that we\u2019ve done such a damn good job of cleaning up pollution in the atmosphere that the air is more transparent, for those of you in Rio Linda, that means it it\u2019s clearer than its been in 20 years. We\u2019ve done such a bang up job. Have you heard this before? Have you heard anybody say that we\u2019re really making headway in pollution? I know we are, but do the environmentalist wackos say it? No, it sets their cause back. Just like Jesse Jackson saying, yep, we\u2019re making progress in race relations. He\u2019ll never say it. Set his cause back, same thing with the environmentalist wackos. All of this is political, and all of it is agenda oriented. Now, here come these two guys, say, hey, guess what, we\u2019ve done such a bang up good job of cleaning up the sky, cleaning up the air, that global warming is going to get worse because the atmosphere has less refraction, less deflection, and so the sun\u2019s rays are piercing and it\u2019s going to cause global warming. We can\u2019t win, it\u2019s ridiculous. <\/line><\/p>\n

So I was basically talking about the fact that in capitalist societies we are the ones that are cleaning up our messes, we have the resources. Compared to us, you go to a Third World country or lesser developed part of the world and you\u2019ll see real pollution, everywhere, on the ground, in the water, in the sky. You see much less here, particularly per capita. So I said the problem here not resources in the world, we don\u2019t have an unequal distribution of resources, we have an unequal distribution of capitalism. So Mike from Lockport called and said, well, you\u2019ve got a problem if you start distributing capitalism around there that means more people are going to end up with automobiles and needing gasoline and oil and you\u2019re going to put pressure on the oil supply and the price is going to go up. And I said that\u2019s not how it happens. When you spread capitalism around, the price of goods and services comes down. That led to a discussion of how there\u2019s more oil out there than anybody can probably figure right now. There was a story just this week, yesterday in fact, from the Salt Lake Tribune. <\/line>“A tiny oil company from Michigan has struck oil in central Utah, but it may be years before anyone knows whether the discovery produces another ‘one field wonder\u2019 or results in a series of major finds that could help reduce the nation\u2019s dependency on foreign crude.” The speculation is that this field in Utah may have over a billion barrels of oil. Over a billion barrels! There\u2019s more oil under the Gulf of Mexico than we\u2019re able to get now, but we will be able to get it as our technological advances enable us to go get the oil at cheaper prices so that a profit can be made once the oil is brought up and sold. But this whole argument about more people and more capitalism and more resources results in scarcity, that argument\u2019s already been had, it\u2019s already been made, it\u2019s already been wagered, and the guy who made the argument that increased capitalism, increased resources, leads to scarcity lost. His name was Paul Ehrlich. He\u2019s the author of The Population Bomb, he hasn\u2019t been right about anything. He wrote a book in the seventies, The Population Bomb, that said if population trends continued, that we\u2019d all be dying of starvation by now. And it\u2019s the just the exact opposite. So in 1980 the economist Julian Simon, who is now deceased and Paul Ehrlich decided to put their money where their predictions were. Ehrlich had been predicting massive shortages in various natural resources for decades. Julian Simon claimed that natural resources were infinite. <\/line>So Simon offered Ehrlich a bet centered on the market price of metals. Ehrlich would pick a quantity of any five metals he liked, which were worth a thousand dollars in 1980. If the 1990 price of the metals after adjusting for inflation was more than a thousand dollars, Ehrlich would win. If, however, the value of the metals after inflation was less than $1,000, Julian Simon would win. The loser would mail the winner a check for the change in price. Ehrlich agreed to the bet, he chose copper, chrome, nickel, tin, and tungsten. His theory is that more people using these finite resources will cause a reduction in these resources, natural resources, cause a reduction, and when the supply goes down, what happens? The price goes up because there\u2019s more demand, there\u2019s more people wanting access. And Simon said this is bunk. So, the ten years went by. And by 1990, all five metals were below their inflation-adjusted price in 1980. Ehrlich lost the bet and sent Julian Simon a check for $576.07. Prices of the metals that Ehrlich chose fell so much that Simon would have won the bet even if the prices hadn\u2019t been adjusted for inflation. And I have a little chart here how each of the metals performed from 1980 to 1990, and what happened basically to the price. The price of copper was 200 bucks in 1980. It fell to 163 bucks in 1990. Chrome, 200 bucks. This is for 51 pounds. And the amount here differs, but I\u2019m not going to confuse you with a bunch of numbers because the individual weight of each metal here is irrelevant to this because they agreed on a fixed price per amount. So $200 was the price just for calculation of the chart. So copper, 1980 price, 200 bucks, 1990 price, 163. Chrome, 1980 price, 200 bucks, 1990 price, 120. Nickel, 1980 price, 200. 1990 price, 193. Tin, 1980 price 200, 1990 price $56. Tungsten, 1980 price, 200. 1990 price $86, a decrease of 57% and 72% respectively in those last two categories. Ehrlich\u2019s reaction to the outcome was typical of his habit of ignoring his failed predictions in general. He maintained he really didn\u2019t want to make the bet and regardless the outcome was meaningless, he said. <\/line> Anyway, Simon got the inspiration to offer the bet from Ehrlich who famously wrote, “If I were a gambler I would take a even money that England will not exist in the year 2000.” Many people who have taken Simon to task for assigning too much importance to his bet with Ehrlich seem to ignore Ehrlich\u2019s penchant for such wild statements. More importantly, in the 1980s Ehrlich not only thought his bet was easy money but he thought Simon to be dead wrong in thinking metal prices would go anywhere but upward. He said Simon is wrong about the economics of mineral resources. The trough-like pattern, long predicted for mineral resources prices, has now shown up, as Cook points out, for all industrial metals except lead and aluminum. This includes copper, blah, blah. He was the totally wrong about everything. He hasn\u2019t been right about anything. He\u2019s a doom-and-gloomer. He\u2019s the same kind of guy like people out there predicting global warming and all Julian Simon — these are natural resources, you know, they occur naturally, nobody\u2019s out there manufacturing them, and yet with population growth and an enhancement in everybody\u2019s lifestyle for the most part around the world, what happened to these prices? They went down. You spread capitalism around the world and the same thing is going to happen. We will find the oil necessary to fuel the engine of freedom and capitalism as it spreads. It\u2019s only the doom-and-gloomers like those in the Democratic Party, America\u2019s liberals, always pessimistic, always fatalistic. We\u2019re always on our last legs, we can\u2019t do this, we\u2019ve seen our best days, blah, blah, blah. BS. Our best days are ahead of us. Tomorrow is going to be a better day than today. Today is a better day than yesterday. As long as the real engine of all this continues unabated, and that\u2019s freedom.<\/line>END TRANSCRIPT<\/line><\/p>\n

&lt;*ICON*> Visit Rush\u2019s eStack…<\/strong><\/line>&lt;a target=new href=”\/\/home\/folder\/may_2_worlds_hell_holes.member.html”>(Capitalism Will Save World\u2019s Hellholes -05.02.02)&lt;\/a><\/line><\/p>\n

*Note: Links to content outside RushLimbaugh.com usually become inactive over time. <\/p>\n\n","protected":false},"excerpt":{"rendered":"

RUSH: Here\u2019s Larry in Ferndale, Michigan — I have not applied. I\u2019m not a rejected applicant. Larry, welcome to the program. Nice to have you with us.CALLER: Why, thank you. First of all I\u2019m a retired environmental engineer that worked for the auto industry, but in one of the more current editions of Scientific American, […]<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nOur Best Days Are Ahead of Us - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/admin.rushlimbaugh.com\/daily\/2005\/05\/06\/our_best_days_are_ahead_of_us\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"Our Best Days Are Ahead of Us - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: Here\u2019s Larry in Ferndale, Michigan — I have not applied. 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