Thursday, May 13, 2010

Cash For Clunkers Is A Sterling Example

A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.

A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year.

So, the average Cash for Clunkers transaction will reduce US gasoline consumption by 320 gallons per year.

They claim 700,000 vehicles so that's 224 million gallons saved per year.

That equates to a bit over 5 million barrels of oil.

5 million barrels is about 5 hours worth of US consumption.

More importantly, 5 million barrels of oil at $70 per barrel costs about $350 million dollars

So, the government paid $3 billion of our tax dollars to save $350 million.

We spent $8.57 for every dollar we saved.

I'm pretty sure they will do a great job with our health care, though.

Thursday, May 6, 2010

Washington Post - Official: Obama administration opposes Fed audit

The Associated Press
Thursday, May 6, 2010; 2:52 PM

WASHINGTON -- A top Treasury official says the Obama administration opposes a proposal to audit the Federal Reserve, a plan that has bipartisan Senate support.
Deputy Treasury Secretary Neal Wolin said an amendment to a pending financial regulation bill could encroach on the independence of the central bank. The amendment's sponsor, independent Sen. Bernard Sanders of Vermont, has criticized the Fed for secrecy in its assistance of banks.
The Fed sets interest rates that have broad economic consequences. The House financial regulations bill also requires an audit by the Government Accountability Office.
Wolin predicted that a Republican proposal to dilute the power of a proposed consumer protection entity would be defeated.

"could encroach on the independence of the central bank"...??