7 Ways McCain Can Use Energy to Beat Obama

[GaryC 7]

7 Ways McCain Can Use Energy to Beat Obama

June 16, 2008 01:02 PM ET | James Pethokoukis

"Climate change is never going to rise to the status of a top-tier political issue" is how one top climate-policy expert recently described the political lay of the land to me. Just take a look at the results of a recent NBC News/Wall Street Journal poll. The top issue for voters (27 percent) was job creation and economic growth. Right behind was the war in Iraq (24 percent). Then came energy and gas prices (18 percent). Far down the list were the environment and global warming, at a minuscule 4 percent. So despite all the media attention on global warming as an existential threat to humanity, it still scores a bit below illegal immigration in the hierarchy of voter concerns.

And there lies an opportunity for John McCain to turn the issues of energy and the environment to his advantage in his race against Barack Obama. Here are a few pieces of advice for Team McCain that I have gathered after talking to some political folks in recent days.

1) Stop talking about global warming. Or at least don't talk about it nearly as much as "energy independence." The latter has an incredible resonance with voters for national security and economic reasons. The former, apparently, not so much. In his much-derided New Orleans speech, McCain mentioned "climate" or "environment" a total of four times, "energy" eight times. Since voters seem to be about four times as concerned with the cost of energy as with climate change, maybe the ratio of "energy" mentions to "climate change" mentions should be at least 4 to 1 rather than 2 to 1 in all speeches. Move energy from being an environmental issue to being an economic and national security issue.

2) Ban the color green. Not only is it a less-than-flattering hue for McCain; but it implies a kinship with an anti-oil, anticoal, antidrilling, antieconomic-growth agenda.

3) Propose drilling in ANWR while standing in ANWR. Yes, McCain has come out against drilling in Alaska's Arctic National Wildlife Refuge. But with oil seemingly on its way to $150 a barrel or higher, at least if you believe many top energy analysts, surely McCain would be forgiven for a flip-flop. He could trot out that famous John Maynard Keynes line, "When the facts change, I change my mind. What do you do, sir?" The end of cheap oil is one huge factual change. And McCain could set the stage, as someone recently suggested, by visiting ANWR with Alaska's governor, Sarah Palin. Recall Ike's 1952 campaign pledge: "I will go to Korea." McCain could say, "I will go to ANWR."

4) Accuse Obama of wanting to launch a pre-emptive war on the American economy. McCain could attack Obama's plan on two main fronts: its overreliance on alternative energy vs. fossil fuels and nukes, and Obama's seeming willingness to go ahead with capping carbon emissions even if India and China—America's two main economic rivals of the future—take a pass. I can almost hear McCain now: "Senator Obama's policies would be tantamount to unilateral disarmament in our economic competition with our global competitors. It is another example of his naiveté."

5) Stop blaming Big Oil. Why should McCain echo Obama in criticizing the oil companies—a blame game that a Republican can't win—when he could easily blast the Democrats for a generation of policies that have limited oil drilling and the exploitation of nuclear energy?

6) Go with a populist "cost of living" argument. You can't expect McCain to abandon his plan to cap U.S. carbon emissions. But since his plan and Obama's similar approach would both raise energy prices for consumers, McCain could explicitly call for rebating money from the auctioning of carbon allowances—we are talking trillions of dollars over the coming decades—back to consumers in the form of lower taxes. It's a populist move that he could contrast with the Democratic plan to have the government keep that money and spend it on various "green" programs.

7) Advocate a cheap Manhattan Project. Obama wants to spend something like $200 billion over 10 years on various energy schemes like a government-sponsored venture capital fund to invest in clean energy. A more modest approach comes from the group Set America Free. It wants American taxpayers to spend $12 billion over the next four years to provide incentives to auto manufacturers to produce, and consumers to purchase, plug-in and flex-fuel hybrid vehicles, as well as to mandate substantial incorporation of plug-ins and FFVs into government fleets. It also advocates providing incentives to transform existing fueling stations so they serve all liquid fuels and to enable utilities to enter the transportation fuel market. In addition, it favors government policies to encourage mass transit and reduce vehicle-miles traveled.

Now all that stuff may anger some free-market conservatives, but it would probably strike voters who want Uncle Sam to do something as both prudent and fiscally responsible.

http://www.usnews.com/blogs/capital-commer...beat-obama.html

[mawilson 2,133]

Gary,

Keeping oil prices high is our last chance to bankrupt India and China. Our economy

is very resilient and has weathered storms worse than the current situation. It will adjust.

It's already adjusting. India and China, on the other hand, will keep burning their cash

reserves trying to keep gas prices low, and eventually will reach a point where they

can't do that anymore. At that point, they're fukced and we're golden.

We're not gonna get another chance to fukc them, Gary. They have HUGE cash

reserves. It's now or never!

[alienlovechild 75]

India and China, on the other hand, will keep burning their cash

reserves trying to keep gas prices low, and eventually will reach a point where they

can't do that anymore. At that point, they're fukced and we're golden.

We're not gonna get another chance to fukc them, Gary. They have HUGE cash

reserves. It's now or never!

Way off MaWilson. Americans don't know how to save their money.

Foreign and Cash Reserves

1 China $ 1,534,000,000,000 31 December 2007 est.

2 Japan $ 954,100,000,000 31 December 2007 est.

3 Russia $ 476,400,000,000 31 December 2007 est.

4 India $ 275,000,000,000 31 December 2007 est.

5 Taiwan $ 274,700,000,000 31 December 2007

6 Korea, South $ 262,200,000,000 31 December 2007

7 Brazil $ 180,300,000,000 31 December 2007

8 Singapore $ 163,000,000,000 31 December 2007 est.

9 Hong Kong $ 152,700,000,000 31 December 2007 est.

10 Germany $ 136,200,000,000 31 December 2007 est.

11 Algeria $ 110,600,000,000 31 December 2007 est.

12 Malaysia $ 101,100,000,000 31 December 2007 est.

13 France $ 98,240,000,000 2006 est.

14 Italy $ 94,330,000,000 31 December 2007 est.

15 Thailand $ 87,460,000,000 31 December 2007 est.

16 Mexico $ 87,190,000,000 31 December 2007 est.

17 Libya $ 79,600,000,000 31 December 2007 est.

18 United Arab Emirates $ 76,620,000,000 31 December 2007 est.

19 Turkey $ 76,510,000,000 31 December 2007 est.

20 United States $ 70,570,000,000 31 December 2007 est

https://www.cia.gov/library/publications/th...r/2188rank.html

[Mr. Big Dog 10,747]

Gary,

[mawilson 2,133]

India and China, on the other hand, will keep burning their cash

reserves trying to keep gas prices low, and eventually will reach a point where they

can't do that anymore. At that point, they're fukced and we're golden.

We're not gonna get another chance to fukc them, Gary. They have HUGE cash

reserves. It's now or never!

Way off MaWilson. Americans don't know how to save their money.

Way off how? China is #1 in your table.

People in most parts of the world have taken a pretty good beating at the gas pump,

while the Chinese have been enjoying cheap gasoline because the government

controls the price.

When it comes to the price of gasoline, the Chinese government's principle is to keep

the people happy.

Unhappy people in China = protests across the country = threat to the communist regime

Chinese oil refineries have to buy crude oil at world prices, but aren't allowed to pass

the cost on to consumers. Instead, the government gives them a subsidy. The government

also offers fuel subsidies to China's 750 million farmers and other low income groups.

About 40% of oil consumed in China goes to transportation.

Get it now?

[one...two...tree 2,762]

India and China, on the other hand, will keep burning their cash

reserves trying to keep gas prices low, and eventually will reach a point where they

can't do that anymore. At that point, they're fukced and we're golden.

We're not gonna get another chance to fukc them, Gary. They have HUGE cash

reserves. It's now or never!

Way off MaWilson. Americans don't know how to save their money.

Way off how? China is #1 in your table.

People in most parts of the world have taken a pretty good beating at the gas pump,

while the Chinese have been enjoying cheap gasoline because the government

controls the price.

When it comes to the price of gasoline, the Chinese government's principle is to keep

the people happy.

Unhappy people in China = protests across the country = threat to the communist regime

Chinese oil refineries have to buy crude oil at world prices, but aren't allowed to pass

the cost on to consumers. Instead, the government gives them a subsidy. The government

also offers fuel subsidies to China's 750 million farmers and other low income groups.

About 40% of oil consumed in China goes to transportation.

Get it now?

He's trying to figure out first if your liberal or conservative so he can plan his counter-attack. You've confused him with non-ideological ways.

[mawilson 2,133]

He's trying to figure out first if your liberal or conservative so he can plan his counter-attack. You've confused him with non-ideological ways.

[alienlovechild 75]

Way off how? China is #1 in your table.

They lead the world in gold and cash reserves so they have the ability to pay. The U.S. has IOUs based on a flagging dollar.

Unhappy people in China = protests across the country = threat to the communist regime

The Chinese government wisely chose to bribe the people with consumer goods and development. They built a lot good will at the expense of political freedoms. Beijing will shoot opponents and the media will make sure nobody knows or they will dream up some excuse. The Chinese follow the leader most of the time. Anarchy and local warlords trashed China for centuries, the people will obey or die.

Chinese oil refineries have to buy crude oil at world prices, but aren't allowed to pass

the cost on to consumers. Instead, the government gives them a subsidy. The government

also offers fuel subsidies to China's 750 million farmers and other low income groups.

About 40% of oil consumed in China goes to transportation.

You think the Russians wouldn't sell oil and gas to the Chinese? I've been through rural China and their standard of living is pretty low compared to Western countries. They can live on a lot less than we can. You neglected China's coal reserves. Also, chaos in China would spin East Asia into a tailspin and screw the world economy. Trying to break the Chinese with oil shortages is like trying to heal yourself with bloodletting.

If you think I'm wrong, remember 2 million North Koreans starved to death in the 90s. China's has similar disasters in the past, Great Leap and Cultural Revolution. It's an even tougher fortune cookie to break.

Edited June 17, 2008 by alienlovechild

[Trumplestiltskin 5,791]

The Chinese must have done something right - it is after all the world's oldest continuous civilization.

[Pinocchio Liberal 268]

Bigdogs insecurities lay in his pics. His desperation is fun to watch!

[Mr. Big Dog 10,747]

Bigdogs insecurities lay in his pics. His desperation is fun to watch!

I don't have any insecurities. I don't plaster the internet with worthless drivel either. That's the McCainiacs hobby. Guess they're the one's with the insecurity issue feeling the need to spread ####### and lies to make themselves feel better about the aged poodle they're supporting. Carry on.

[zqt3344 21]

Ahhhhhhhh, finally someone on here has some financial intelligence to understand what is going to happen here. MaWilson is right on this, it will happen. Most people on here also do not realize how China pegs its currency to the US dollar and will not let it float on it's own, if it did, watch that country have some sudden recession problems. Oh and you are right the Chinese subsidize the entire energy market in China and keep it artificially deflated, why do you think they are trying to drill and buy up oil fields all over the world, they cannot keep up this shell game of robbing Peter to pay Paul within their national budget, and their cash reserves are rapidly starting to decline and be eaten up trying to pay for this shell game. Great analysis MaWilson. But you will no doubt get a bunch of stupid replies to your post for these liberals on here mock what they do not understand.

Gary,

Keeping oil prices high is our last chance to bankrupt India and China. Our economy

is very resilient and has weathered storms worse than the current situation. It will adjust.

It's already adjusting. India and China, on the other hand, will keep burning their cash

reserves trying to keep gas prices low, and eventually will reach a point where they

can't do that anymore. At that point, they're fukced and we're golden.

We're not gonna get another chance to fukc them, Gary. They have HUGE cash

reserves. It's now or never!

[Trumplestiltskin 5,791]

So it would seem... If the current slew of dubious anti-obama articles are any indication.

[zqt3344 21]

AHHAAH right sure it is.....when donkeys fly! Why don't you go live there and report back to us and let us know how great it is there to live in it.

The Chinese must have done something right - it is after all the world's oldest continuous civilization.

[Trumplestiltskin 5,791]

Ahhhhhhhh, finally someone on here has some financial intelligence to understand what is going to happen here. MaWilson is right on this, it will happen. Most people on here also do not realize how China pegs its currency to the US dollar and will not let it float on it's own, if it did, watch that country have some sudden recession problems. Oh and you are right the Chinese subsidize the entire energy market in China and keep it artificially deflated, why do you think they are trying to drill and buy up oil fields all over the world, they cannot keep up this shell game of robbing Peter to pay Paul within their national budget, and their cash reserves are rapidly starting to decline and be eaten up trying to pay for this shell game. Great analysis MaWilson. But you will no doubt get a bunch of stupid replies to your post for these liberals on here mock what they do not understand.

Gary,

Keeping oil prices high is our last chance to bankrupt India and China. Our economy

is very resilient and has weathered storms worse than the current situation. It will adjust.

It's already adjusting. India and China, on the other hand, will keep burning their cash

reserves trying to keep gas prices low, and eventually will reach a point where they

can't do that anymore. At that point, they're fukced and we're golden.

We're not gonna get another chance to fukc them, Gary. They have HUGE cash

reserves. It's now or never!

Must have missed the "mocking liberals" in this thread - unless your bumchums have somehow switched sides

Never mind, eh?