US & World Gas Prices

Bloomberg on May 12, 2012 published an article in which they checked out the price per gallon of premium gas (PPGPG) in 55 countries and assigned a pain at the pump ranking (PATPR) based on the average daily income of the people and the share of a day’s wages to buy a gallon of gas. The highest price of gas was in Norway at $9.69 however they were #48 out of the 55 in PATPR because their share of a day’s wages needed to buy a gallon of gas is 3.6%. On the other hand, India came in at #37 PPGPG with $6.06 but because the average person makes only $4.50 a day it takes 135% of a day’s wages of buy gas so it is #1 in PATPR. According to the Institute for Energy Research, a Washington-based group that opposes government intervention in energy markets, India’s consumption subsidies (10% of its budget and rising) isn't an efficient way to alleviate energy poverty because they encourage wasteful energy use and ultimately increase the price of fuel.

The Unites States came in at #44 PPGPG with $4.19 a gallon with a PATPR of #50. The US’ price per gallon is among the world's lowest and Americans' average income ($134 day) insulates them compared with poorer countries (daily wages needed to buy a gallon of gas is 3.1 percent). Only 5 nations hurt less at the pump than Americans do – 3 of them are members of the Organization of Petroleum Exporting Countries (OPEC). The US paid about $4.2 billion in 2010 to subsidize oil production and consumption. Gasoline taxes account for just 11 percent of the retail price of the fuel, compared with 60 percent in Britain. The cost of a barrel of crude, at around $100 a barrel, may seem painful but is less than half the $213 cost of a barrel in January 1981 during Iranian shipment disruptions, adjusted for real growth in disposable income. 

Luxembourg - #26 in PPGPG with gas $7.24 has a PATPR of #51. Luxembourg's 500,000 inhabitants enjoy the highest per capita income in the world ($345 a day), making its moderate gas prices one the most affordable (the share of a day's wages needed to buy a gallon of gas is 2.1%). Saudi Arabia - #54 in PPGPG with gas $0.61 has a PATPR of #52. Saudi Arabia holds one-fifth of the world's oil reserves and is pursuing wind, solar and nuclear power to help cut in half the crude and natural gas it burns to generate its electricity. The country wants to generate a third of its electricity from alternate energy sources within 2 decades, according to government officials. Persian Gulf oil producers are seeking new ways to generate power because they prefer selling their expensive crude to gas-hungry countries rather than burning it. Saudi Arabia is OPEC's biggest producer and heavily subsidizes the price of gasoline. The average daily income is $55. The share of a day's wages needed to buy a gallon of gas is 1.1 percent. The United Arab Emirates (UAE) placed #51 in PPGPG with gas $1.89 and PATPR #53. Since the discovery of oil in the UAE in the 1960s it has evolved from a poor region of principalities to a wealthy, modern state with a high standard of living and diverse markets, especially in Dubai and Abu Dhabi. Economic diversification efforts in recent years have reduced the portion of oil and gas on the economy to 25%. The UAE is the 8^th biggest oil producer in the world, drawing about 2.81 billion barrels of oil a day, and the 10th-biggest consumer of gasoline. The average daily income is $186. The country subsidized about 68 percent of the cost of gasoline as of 2010 and the share of a day's wages needed to buy a gallon of gas is 1 percent. Kuwait - #53 in PPGPG (gas $0.88) has a PATPR of #54. Petroleum accounts for almost half of Kuwait's gross domestic product and 95% of its exports and government income. In 2010, the country approved a plan to spend $130 billion over 5 years to diversify the economy. Rising global gasoline prices have boosted government income and spending, including wage increases for public-sector employees. The average daily income in Kuwait is $128. The share of a day's wages needed to buy a gallon of gas is 0.7%. Venezuela - #55 PPGPG ($0.09) has a PATPR of #55. Even with a relatively low daily income of $28, the share of a day's wages needed to buy a gallon of gas is the lowest anywhere at 0.3 percent. President Hugo Chavez has called in the past for the country to reduce its rising gas consumption but with fuel this cheap there's little incentive. After decades of inexpensive gas many Venezuelans consider it part of the social contract. The last time the country tried to cut subsidies, in 1989, the country was torn by riots that killed hundreds of people. The cost of filling up the 39-gallon tank of a Chevrolet Suburban at 9 cents per gallon in Venezuela is $3.51, compared with $163.41 in the US.

The US’ 2 largest importers: Canada the world's 6^th biggest oil producer comes out higher in all categories than the US (gas $5.75 making it #38 in PPGPG, income $144 a day, and a PATPR of #46 because their share of a day’s wage is 4%). Only Americans and Kuwaitis use more gas per capita than Canadians. Canada’s land mass makes for long transportation routes with additional costs that trickle through their economy and their government paid $2.19 billion to subsidize oil consumption in 2010. Mexico the world's 7^th biggest oil producer has a lower the price of gas (#48 PPGPG-($3.20) because of subsidies and favorable foreign exchange rates. However they have a higher PATPR (#27); average daily income is $31 and their share of a day's wages to buy a gallon of gas is 10%. Mexico relies on the US to refine its oil into gasoline. This information validates the Slate.com and United Press International articles. I’ll also give you a Congressional Report and May 10 Oilprice.com articles that further substantiate claims that more oil does not reduce gas prices. 

Oil 101

From the Pipeline101 website I learned that there are already about 55,000 miles of pipe running crude oil in the US. Per the Tribal Energy and Environmental Information website: Within the United States, crude oil  is produced in 31 states and off the coasts of Alaska, California, Louisiana, and Texas. The top crude oil producing states are Texas, Alaska, North Dakota, California, Louisiana and Oklahoma; about one-fourth of the US’ crude oil is produced offshore  in the Gulf of Mexico. The Quoteoil.com website said - The bulk of proven remaining oil reserves in the world today are located in the Middle East (estimated 727 billion barrels); Central and South America are estimated to have 99 billion barrels, Africa about 87 billion, the former Soviet Union about 78 billion and Western Europe and China are estimated to have 18 billion barrels each, Mexico is estimated to have 16 billion barrels and India with 5 billion in reserve. Oil, coal and natural gas account for more than 85% of the energy consumed in the US (with oil accounting for nearly 40% of it).  

In my February 26 blog I told you that Wall Street speculators drove up the price of oil by 22% a barrel before it’s sold to be made into gas and per Sageworks 61.5% of what you spend at the gas pump goes to the oil company, 14% to the refinery, 12% to taxes, 8% for delivery, 2.5% to the credit card company and 2% to the gas station. On May 10, 2012 we heard that for the first time in 60 years the US is exporting more oil than its importing; some experts are estimating that we have 2 trillion barrels of oil in our country. In looking at the map shown many of the states where the Keystone pipeline is to travel already have oil, refineries and pipelines. I do understand Canada’s desire for the US to import more because it’s the shortest distance to making a profit.  I won’t bore you with more articles regarding the issues of the pipeline but do wonder why it should travel so far through the middle of our country to Texas instead of connecting with a closer state like the Dakotas. In my search for information I found that 2 new refineries are opening up (Arizona and North Dakota) which will create 600 jobs. I also discovered that the pipeline would add approximately 1,670 more miles of pipe in the US and cost about $7 billion. I personally don’t know why Texas (a strongly Republican state and top US producer) should get more of the refinery business and jobs than another state that is closer (which would cost us less) and would pose less risk to us as a nation. On March 24, 2012 it was reported that Salt Lake City, Utah residents are suing Chevron over oil spills.  

Per the Department of Energy’s September 2011 Import Highlights released November 29, 2011, Canada remained the largest importer of crude oil in September (2,324 thousand barrels per day [TBPD]); Saudi Arabia (1,465 TBPD), Mexico (1,099 TBPD), Venezuela (759 TBPD, Nigeria (529 TBPD), Colombia (510 TBPD), Iraq (403 TBPD), Ecuador (299 TBPD), Angola (283 TBPD) and Russia (275 TBPD). We also imported oil from Brazil, Kuwait, Algeria, Chad, and Oman. Total crude oil imports averaged 9,006 TBPD in September, which is a decrease of 16 TBPD from August 2011. The top 5 importing countries accounted for 69% of the US crude oil imports while the top 10 sources accounted for approximately 88%. On March 12 it’s said that the US is 3 million barrels a day less dependent on foreign oil than when the President was elected (each barrel = 42 gallons).

On May 10 Slate.com and United Press International had articles that said: Gasoline is made of oil so it sounds to a lot of people that if the US produced more oil domestically that gasoline would get a lot cheaper. But a new CBO report on gasoline prices contains this nice chart which shows that it's not so. Domestic oil production is irrelevant to oil prices because oil is a globally traded commodity making it no more expensive in importing countries than in exporting countries. Many oil-producing countries have adopted misguided consumption subsidy schemes so it's empirically true that high-production countries tend to have low prices but this is a coincidence not a strict causal relationship. Canada is a net oil exporter, Japan produces no oil, and the US is a middle case. International price differences are driven by the fact that some countries have high taxes on gasoline, some (like the U.S.) have low ones, and others have subsidies. What increased oil production does do is alter a country's trade situation. Canada imports a lot of consumer durable goods, so the more oil they export to the US the more Kitchen Aid stand mixers they can afford to import from Ohio. This can be a big deal (Argentina, for example, really needs to bolster domestic energy production to raise foreign currency reserves) but it's a different issue and it's not one the United States is facing.

I found an article on Bloomberg that shows the US standing in the world for the price of gas. This information along with a lot of other information that will follow makes me think that our problem is not how much oil we have but the number of refineries that process the crude oil. I was amazed to see that the only refinery in the northeast was in Delaware. 

National Defense Act Update

My January 3, 2012 blog gave the information that was available at the time the President signed the HR 1540 National Defense Authorization Act (NDAA) bill. Here’s more. 

H.R. 1540: National Defense Authorization Act for Fiscal Year 2012 was introduced Apr 14, 2011 by Rep. Howard “Buck” McKeon [R-CA25] and authorized appropriations for fiscal year 2012 for military activities of the Department of Defense and for defense activities of the Department of Energy. The Act authorized $662 billion in funding, among other things "for the defense of the United States and its interests abroad." In a signing statement, President Obama described the Act as addressing national security programs, Department of Defense health care costs, counter-terrorism within the US and abroad, and military modernization. The Act also imposes new economic sanctions against Iran (section 1045), reviews of the military capabilities of countries such as Iran, China, and Russia, and refocuses the strategic goals of NATO towards energy security.

The most controversial provisions to receive wide attention are contained in Title X, Subtitle D, entitled "Counter-Terrorism." In particular, sub-sections 1021 and 1022, which deal with detention of persons the government suspects of involvement in terrorism, have generated controversy as to their legal meaning and their potential implications for abuse of Presidential authority. Although the White House and Senate sponsors maintain that the Authorization for Use of Military Force (AUMF) already grants presidential authority for indefinite detention, the Act states that Congress "affirms" this authority and makes specific provisions as to the exercise of that authority. The detention provisions of the Act have received critical attention by, among others, the American Civil Liberties Union (ACLU), the Bill of Rights Defense Committee, and some media sources which are concerned about the scope of the President's authority, including contentions that those whom they claim may be held indefinitely ‘until the end of hostilities’ anyone the President believes to have “substantially supported” al Qaeda, the Taliban or “associated forces” could include US citizens arrested on American soil, including arrests by members of the Armed Forces. The bill passed the House 283 to 136.

A federal court issued an order prohibiting the indefinite detention powers of the NDAA for American citizens on the grounds of unconstitutionality on May 16, 2012 in response to a lawsuit filed by journalist Chris Hedges, Professor Noam Chomsky, Political Consultant Naomi Wolf and others. US District Judge Katherine B. Forrest ruled the NDAA 2012 likely violates the 1st and 5th Amendments. Issuing a preliminary injunction prevents the US government from enforcing section 1021 of the NDAA's "Homeland Battlefield" provisions pending further order of the court or an amendment to the statute by US Congress.

The Western Center for Journalism published an article on May 19, 2012 saying - the controversial Act has been roundly criticized as unconstitutional by groups on both the political left and right. ... Judge Forrest concluded that the Section “…failed to ‘pass Constitutional muster’ because its broad language could be used to quash political dissent.” In a statement clearly directed to lawmakers, she added,   ”Section 1021 tries to do too much with too little – it lacks the minimal requirements of definition and scienter (intent or knowledge of wrong doing) that could easily have been added, or could be added, to allow it to pass constitutional muster.” That is, Congress failed—perhaps deliberately– to define “substantial support” of terrorist groups or describe those activities which might be construed as crossing the legal line. And no law may be enforced if those to whom it applies are unable to clearly understand what a violation of that law entails. ... According to Democrat Senator Carl Levin, it was Obama himself who demanded American citizens be included under the detention law and that the President have exclusive authority to invoke the statute. “The language which precluded the application of Section [1021] to American citizens was in the bill that we originally approved…and the administration asked us to remove the language which says that US citizens and lawful residents would not be subject to this section,” said Levin after the NDAA was signed into law. In his signing statement Obama wrote that he had forced Congress to “[revise] provisions that otherwise would have jeopardized the safety, security and liberty of the American people. ... I want to clarify that my Administration will not authorize the indefinite military detention without trial of American citizens. My Administration will interpret section 1021 in a manner that ensures that any detention it authorizes complies with the Constitution, the laws of war, and all other applicable law.” So rather than the grand inquisitor, committing to prison any American citizens he chose to view as enemies, Obama claimed to be their champion and savior, protecting them from the excesses of an over-zealous Congress! This of course was a lie. 

The Department of Justice which defended the NDAA before Judge Forrest will undoubtedly appeal her ruling. It is a judicial process Americans must watch closely as the free exercise of our Constitutional rights depends upon the outcome.

Get A Clue

Even the rich try to stop each other more than the average American does. In 2011 Oscar Mayer and Ball Park hotdogs were suing one another over their advertising. On January 4, 2012 AT&T paid TIVO $215 million to settle a patent suit. January 6 a former top Scientologist (Debbie Cook) was accusing the Church of Scientology of spending too much donation money on opulent (lavish) buildings instead of promoting the faith; the church responded with it is building around the world which is a way to promote the religion. January 24 Macy’s was suing Martha Stewart’s house-ware company, Martha Stewart Living, for breach of contract in order to block a licensing deal with JC Penney to sell her products. January 29 a California firm was suing Walgreens on coupon fraud allegations.

Americans did get upset in December 2011 and had Coke Cola change its white can back to red; they even stopped  Verizon from charging customers $2 for paying bills online or over the phone (in an effort to get them to use the automatic payment system). In April 2012 because of public outcry the Miss Universe Organization reversed its decision not to allow a transgender to participate in the Canadian pageant (she didn’t win but at least got to participate). May 7 a manufacturer of pink slime closed plants in 3 states; 650 lost their jobs.

We had Salmonella outbreaks - December 31, 2011 in an Arizona iceberg lettuce field that affected 7 states, a Sushi outbreak in 19 states on April 4 and a Tuna outbreak in 20 states on April 14. On October 28, 2011 ABC News started telling you about the fish industry that does an $80 billion a year business. They found 19 of the 22 restaurants (in 3 cities) tested were selling Escobar which can cause stomach cramps and intestinal problems instead of white tuna. ABC saw the shrimp coming from Thailand being picked up along the side of the road. Consumer Reports did their own test of 190 pieces of seafood from supermarkets and restaurants; they sent them to a lab for DNA testing and found that 22% was not what it was sold as (Red Snapper was Ocean Perch, Sole was Sutchi Catfish from Vietnam, and Grouper was Tilefish with a high mercury content). They found widespread fraud. Per Ocean, 84% of our fish comes from overseas and only 2% is inspected and less than 0.001% is tested for fraud because a fish chart and DNA scanner is necessary to be sure. On March 16 it was reported that scallops are being injected with a chemical to take on water and thus weigh more (dry scallops from the sea are being swapped out); a fish inspector said he sees this happening 40% of the time and the stores get fooled (it was suggested that you look for whiteness and water sitting around; if they shrink in half – look for another source.) On May 18 we learned that 90% of the shrimp we buy at the grocery store comes from overseas’ shrimp farms and 10% contained antibiotics that are illegal in the US. In January because of the Dr. Oz show regarding arsenic in orange juice (OJ) the FDA said it would increase tests for low level fungicides. And, an unnamed OJ company called the FDA to report an unauthorized chemical found in their (and a competitor’s) juice coming from overseas; low levels of a pesticide called Carbendazim was found (animals studies found high levels to cause hormonal and reproductive problems); 26% of our OJ comes from overseas mostly from Brazil and Mexico; 100% of limes, 75% of apple juice, asparagus and processed mushroom are all imported and only 2% are inspected by the FDA. On February 3 the FDA found low levels of the pesticide in juice manufactured in Florida because the company mixed Brazil’s juice with our home grown OJ. We can’t afford to have regulators one on one with a business so manufacturers and importers are supposed to be responsible and police themselves. But this costs money and companies don’t want to eat into their profits.  

It’s not just food products that are harmful. On January 13 metal tissue holders were pulled from Bed, Bath and Beyond due to low-levels of Cobalt 60 (radioactive material used in medical devices). The internet folks like Craig’s List and dating services should be responsible for what’s on their sights. Craig’s List not only allows for brutal rapes and murders but the hijacking of people’s property and the death of 3 Detroit women were linked to Escort ads. On April 26 we heard that MissTravel.com launched a few weeks before is a dating service that hooks up pretty women with generous male partners for travelling and the EstablishMen website does the same thing – which makes me wonder if sites like these and others are a type of legalized prostitution and we know child pornography is also on the web. People are getting rich off these sites. 

On March 14 the Executive Director of Goldman Sachs resigned saying the environment is as toxic and destructive as he’s ever seen it. We should get a clue from this – we need the regulations that the Republicans want to do away with. 

The Rich in America

On November 8, 2011 a judge approved a $410 million class action settlement against Bank of America (BofA) that gave customers a partial refund for a decade of overdraft fees. In December an episode of Harry’s Law reminded us that the big banks were bailed out in an effort to help the home owners with mortgages but that’s not what happened. Although on January 10, 2012 the Fannie Mae CEO resigned, the banks continued with large CEO salaries and business as usual. With government urging, on March 9 BofA agreed to expand its settlement and reduce the mortgage principals of more than 200,000 homes to their current values. May 1 BoA threatened to cut 2,000 investment banker jobs and it was said that in the Investment and Commercial Banking units 100,000 jobs are on the line across the financial services industry. I thought the JP Morgan-Chase issue would get people fed up but it didn’t. Let’s look at some others that are supported with the thought that we all benefit with the rich:

Wall Street: December 30 we heard Reebok spent $64 million in advertising a toning shoe and the Federal Trade Commission got them to pay consumers $25 million for false advertising (this same thing happened to Skechers, the leader in the billion dollar toning shoe industry, on May 15, they’re paying out $40 million for false advertising of their Shape-up shoe). January 13, 2012 CVS paid $5 million to settle charges of overcharging seniors and the disabled (March 3 we hear a New Jersey CVS pharmacy for months had mixed up the cancer drug Tamoxifen with children’s fluoride). January 24 Hewlett-Packard paid $425,000 to settle charges regarding their failure to warn customers of exploding laptop batteries (thing same thing happened February 11 when BMW agreed to pay $3 million for delays in reporting safety defects and recalls to the government). March 3 BP reached a $7.8 billion settlement with plaintiffs of Gulf oil spill (doesn’t include the US government). March 7 a Texas tycoon was convicted of bilking more than $7 billion from investors in a Ponzi scheme that went on for more than 2 decades. April 12 the US Justice Department alleged that Apple and 5 publishers conspired against Amazon discounts to price fix e-books; 3 publishers settled. April 24 MetLife paid nearly $500 million to settle multi-state death benefits claims. May 1 a New York (NY) Thoroughbred Racing Executive was put on leave after it was found that he didn’t pay $8.5 million in winnings to bettors. May 7 Abbott Laboratories agreed to pay $1.6 billion in criminal and civil fines for improper marketing of the anti-seizure drug Depakote to nursing homes (said it would treat aggression in Dementia patients). May 12 the co-founder of Facebook gave up his US citizenship and now lives in Singapore to try and save millions in taxes. May 18 Facebook said to be worth $104 billion starts selling shares (90%) to institutions and the mega wealthy (AmeriTrade required buyers to have $250,000 and Fidelity required $500,000 in an account) and then 10% was offered through discount brokers (the opening price for shares was $38 and even though it was expected to triple by the end of the day when the little guy could buy it, it ended at $38.23).

Cosmetics: April 10 regulators in California (CA) tested 25 nail polishes and found that 10 of 12 said to be free of toluene (a toxic chemical along with DBP and formaldehyde) contained said chemical; the chemicals can cause birth defects, asthma and other illness if there’s extensive exposure. April 30 it’s said that the average woman applies 12 beauty products to her body every day and about 120 chemicals (men apply 6 products and 80 chemicals); Europe banned 1,200 chemicals that were being used in cosmetics and the US banned only 10 so the companies make riskier products for Americans; cosmetic companies spent $3.5 million lobbying against an upcoming bill that will prohibit the use of chemicals linked to cancer or reproductive problems. In October 2011 we heard there were more plastic surgeries going wrong and doctors were offering Botox instead for some procedures (boobs, butt). May 11 the Beverly Hills, CA Omidi brothers (one with a revoked license due to dishonesty and the other suspended for 3 years because of gross negligence) had 5 lap band outpatients die in the last 3 years sparking lawsuits and a federal investigation; it’s said they make $21 million a month and aren’t concerned about a million dollar lawsuit. 

Americans: Last year over 300,000 men got Botox as a gift; many got plastic surgery as a Christmas gift. December 14 someone in NY bought the Apple Computer Company’s founding partnership agreement for $1.6 million. December 26 an Arizona man bought a 1941 fruitcake for $525 in online auction. John James Audubon’s book Birds of America (cost $1,000 in 1827) sold for $8 million on January 21, 2012. February 14 the Boston Red Sox agreed to pay David Ortiz $14.5 million for a one year deal; the Oakland A’s agreed to pay Yoenis Cespedes $36 million for a 4 year deal and on March 2 the Cardinals reached a $75 million deal with Yadier Molina. April 21 a group of billionaires began forming a company to drill asteroids. April 25 the Kardashians signed a reality show deal for $40 million. May 18 someone paid a record amount (more than $90 million) for a penthouse apartment on the 89th and 90^th floors of a NY building (December 20 the 22 year old daughter of a Russian billionaire spent $88 million for the penthouse apartment that overlooks Central Park and was owned by a CitiGroup Chairman).

I don’t believe many of the rich care about the average American but I do think we need to save them from their criminal or foolish spending ways; vote for the guy who wants to stop Wall Street and tax the rich. 

JP MorganChase

On May 10, 2012 the Federal Reserve cleared China’s first takeover of a US bank. On May 11 we heard JPMorgan-Chase lost $2 billion in 6 weeks; the CEO who earns $23 million a year blamed the loss on errors, sloppiness and bad judgment. It was said that a tax loophole allowed the risky trading; the company’s credit rating was downgraded and their stock fell 12% losing the company another $20 billion. On May 14 the Chief Investment Officer, who made $15 million and is #8 on the Forbes list of highest paid women, stepped down along with 2 other executives. The CEO said the company made $19 billion in 2011 and with the losses it’s still valued at $137 billion. On May 15 shareholders voted to keep the CEO and let him keep his pay. On May 17 it was reported that they lost at least $3 billion.

Some said the company may have violated the Volcker Rule and this situation is more reason to have tougher regulations. The Volcker Rule is a specific section of the Dodd–Frank Wall Street Reform (passed May 2010) and Consumer Protection Act. It was originally proposed by former US Federal Reserve Chairman Paul Volcker to restrict US banks from making certain kinds of speculative investments that do not benefit their customers as such speculative activity played a key role in the financial crisis of 2007–2010. Due to concerns of the banking industry and Republicans an amendment to the Dodd-Frank law was initiated and took until February 2012 to pass. The rule, which ended up with a number of exceptions to the ban on commercial banks conducting proprietary trading (deposits are used to trade on the bank's own accounts) is to go into effect July 21, 2012. However, during his report to Congress on February 29, 2012, Federal Reserve Chairman Ben S. Bernanke said the central bank and other regulators won’t meet that deadline.

On May 12 we heard innovators and creative people are the ones that become rich and that the rich think we shouldn’t close the incentives that allow for becoming ultra rich as they are needed. And, a Gallup poll showed that 63% of Americans think we benefit from having a rich class, 34% did not; I guess the other 3% are undecided. In any case these poll numbers were unchanged from 30 years ago. I personally think creative and innovative people have it in their blood and wouldn’t stop because they make millions instead of billions of dollars.

On May 15 the President on the View said that JPMorgan is one of the better managed banks but even if you’re smart you can make mistakes; which is why they passed Wall Street Reform. Banks are insured by the taxpayers and we don’t want them (the banks) taking risks so they have to be bailed out again. If we get the rules that were proposed/passed by Congress implemented it shouldn’t happen again; there are still those fighting it. The President said he feels our banks should invest in small businesses and homeowners and not risky investment deals. On this same date, the President was pressuring regulators to enforce the Wall Street Reform that was passed 2 years ago and we heard the FBI is opening an investigation into the JP Morgan investment losses.

On April 25, 2 dozen protesters were arrested outside a Wells Fargo shareholders meeting. On May 1 (International Workers Day) the Occupy Movement all over the country protested; 7 New York City banks received threatening notes with white powder (corn starch) inside, in San Francisco they broke windows and used spray paint on buildings, in Oakland tear gas was fired on protesters, at least 9 were arrested and in Seattle protestors smashed windows and disrupted traffic. I’m not saying these tactics are right but at least a handful of people are standing up for the Americans that are unfairly treated by rich people and/or companies.

My first reaction to the JP Morgan shareholder vote and the Gallup poll was - how f..king stupid are we. Now I know why the Occupy Movement isn’t getting the support it should. There are too many upper middle class in this country that don’t care about the poor, the people who have lost jobs or homes, or the ones that have lost their retirement because of Wall Street investments and blame the President instead of Wall Street for the problems.

It was not a surprise that Romney took the Oregon and Nebraska primaries as there is no one left to really oppose him. It was disappointing to hear that in the May 7 West Virginia Democratic primary an inmate got 40% of the votes. The Huffington Post consolidated 289 polls including those from Rasmussen, Fox, Gallup, Christian Science Monitor, YouGov, the Daily Kos, Washington Times, and Angus-Reid from May 7 through May 16 and the results were Obama 44.7, Romney 44.1%. Foxnews.com reported that Obama was gaining the support of Independents while other polls found Romney gaining support from women. 

The President gives us a lot more credit than we deserve as a people – he thinks you’ll wake up to the Republican deceit and do the right thing and vote him back in because he does care about us all and wants us to get a fair shake. 

FDA Blood Donation Rule

It was already said that there are almost 50,000 new HIV/AIDS cases annually. So, let’s look at the 2009 data used in the Food and Drug Administration’s (FDA’s) 2010 decision.

Blacks and Latinos accounted for a disproportionate share of HIV infections relative to their population. While Blacks are 14% of the population they represented 44% of the total cases. Latinos are 16% of the population and represented 20% of the cases. Whites were 33.1%, Multiple Races 1.2%, Asian 1.1%, American/Alaskan Native 0.5% and Native Hawaiian/Other Pacific Islander 0.08%. Based on the CDC’s most recent estimates, more than 290,000 women are living with HIV/AIDS in the US (Blacks accounted for 64% of new AIDS diagnoses, Latinas 18% and White 15%). It was also found that most teens and young adults under the age of 30 (13-29 year olds) were infected sexually and accounted for 39% of new HIV infections (Black between 13-19 represented 68% of AIDS diagnoses, Latino 21% and White/other 11%).

The CDC said Gay, Bisexual, and Other Men Who Have Sex with Men (MSM) accounted for 61% of new HIV infections: Whites of all ages accounted for 37.9%, Blacks 35.9% of which the 13-29 year olds we 60.2% of Blacks or 21.7% of the total MSM cases and Latinos/others were 26.1%.

Women represented a larger share of new infections compared to earlier years; HIV incidences increased gradually until the late 1980s, they declined during the early 1990s, and have remained relatively stable since. Heterosexual contacts were 27% with women accounting for 23% (Blacks accounted for 57%) leaving 4% males. 

Drug Users were 9% and MSM Drug Users were 3% of all new HIV infections.

CNNHealth on June 14, 2010 reported - The Federal Advisory Committee on Blood Safety and Availability (makes recommendations to the US Food and Drug Administration) voted 9 to 6 against lifting the ban on the policy that prevents gay men from donating blood in the US, provoking disappointment and anger from gay activist groups.

Current FDA rules dictate that any man who has had sex with another man since 1977, even once, cannot donate blood. This rule has been in place since the early 1980s, when there were no tests in existence for identifying HIV-positive blood. Concerns about HIV tainting the blood supply prompted this policy, viewed as a safety measure. Although the committee recommended keeping this policy, the group also called the rule "suboptimal" and suggested using criteria based on individual behavior instead of broad characteristics, such as men who have had sex with other men. A report from the Williams Institute for Sexual Orientation Law and Public Policy at the University of California, Los Angeles School of Law found that about 219,000 more pints of blood could be available each year if the FDA lifted the ban. Rea Carey, executive director of the National Gay and Lesbian Task Force said in its response to the decision - "The committee's decision today not only leaves a discriminatory practice in place, it also puts lives at risk". The American Red Cross also expressed disappointment about the decision, stating that "while the Red Cross is obligated by law to follow the guidelines set forth by the FDA, we also strongly support the use of rational, scientifically-based deferral periods that are applied fairly and consistently among donors who engage in similar risk activities."

The decision to ban MSM donations was made 30 years ago; the above information is 2 years old. Because we can’t discriminate based on race (Blacks and Latinos had a higher percentage of cases than population) I guess they needed another method and so they picked on MSMs.

According to the May 15 Voice of America website the Antiviral Drugs Advisory Committee endorsed a pill (Truvada manufactured by Gilead needs to be taken daily) that prevents HIV in healthy people and the FDA is expected to decide on the issue by June 15. Some doctors say Truvada is a step toward ending the threat from AIDS but some critics say the drug could give people a false sense of security and make them less likely to use condoms which are a more cost-effective method of prevention since Truvada currently sells for about $14,000 a year (it would cost several hundred dollars a year) in developing countries. On May 16 a panel of HIV specialists recommended an over-the-counter (OTC) HIV test. The pill sounded like it was a good idea but now that I hear the cost and there may be an OTC test, I think boys and men just need to wear condoms or take the test before having sex (perhaps there should be laws requiring such in order to save the government $27 billion a year).

I don’t think that all MSMs should be banned from giving blood – we have condoms and OTC tests to protect against the disease and we have tests for identifying HIV-positive blood – let’s go with the test results instead of discrimination and save more lives via increased blood donations.