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Michael Fitzsimmons
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Michael Fitzsimmons focuses on investments in the oil & gas sector with an eye for dividend income and long-term capital appreciation. Fitzsimmons is an engineer, not a CFA. The information and data presented in his articles are obtained from company documents and/or sources believed to be... More
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  • Could Fiat bring an Energy Policy to the U.S.??
    Fiat is considering selling its natural gas vehicles in the U.S. market. Read about it here:

    www.bloomberg.com/news/2010-12-01/fiat-s...
    Dec 02 6:16 PM | Link | Comment!
  • "QE2" or Natural Gas Transportation?
    Who are the great minds that lead American economic policy? Let's take a look:

    Benjamin Bernanke - Chairman, Federal Reserve
    Alan Greenspan - Bernanke's predecessor
    Janet Yellen - Vice Chairman, Federal Reserve
    Tim Geitner - U.S. Secretary of the Treasury
    Barney Frank - Chairman, House Financial Services Committee
    Jared Bernstein - Chief Economic Advisor to Joe Biden
    Jacob Lew - Director OMB
    Peter Orzag - Lew's predecessor
    Larry Summers - Assistant to the President, National Economic Council

    How is it that such an educated group of men and women be so blind as to the fundamental problem of the U.S. economy (foreign oil imports)? This wise group of policymakers apparently think the solution to what ails America is "QE2", a euphemism for "printing money out of thin air". I'm only an engineer, but I can already see the impact this will have: higher commodity prices. We have seen this in oil, gold, silver, corn, soybeans, and across the spectrum. Powering this move is, of course, a weak U.S. currency. This group of distinguished "economists" apparently believe that the key to a U.S. economic resurgence is to devalue our currency. Those opponents of the Federal Reserve, Ron Paul and a handful of other patriotic Americans, know that this is a recipe for disaster. As Paul relates in his great book End the Fed, a one-ounce $20 gold piece in the early 1900's would buy you a nice suit, shirt, tie, belt and shoes. Today, that same 1 oz. gold piece would do the same, but what would $20 buy you? Maybe the belt. Maybe. This massive devaluation of the U.S. currency is the result of placing our faith in an un-Constitutional entity like the Federal Reserve. They print money in complete secrecy, distribute it to their good friends and buddies who just happen to be the CEO's of the largest banks and financial institutions and already rich beyond belief, and all with no Congressional oversight already. Yet when legislation comes before Congress to simply audit the Fed (duh!), even some of the bill's sponsors voted against it!? This shows you the grip on economic policy this small group of people have on U.S. economic "policy". It has had disastrous effects - who can doubt America is on a fast moving train into the economic abyss?



    Not one to complain without offering solutions, there is another path. We could address this country's four major economic problems:

    1) reduce foreign oil imports by adopting natural gas transportation
    2) adopt a strategic long-term comprehensive energy policy:
    http://thefitzman.blogspot.com/2008/08/strategic-long-term-comprehensive-us.html
    3) audit the Federal Reserve and eventually abolish it in favor of a Constitutional monetary standard based on gold and silver
    4) reduce the budget of America's biggest entitlement program - the U.S. military and its imperialistic approach to "foreign policy"

    What would create more American jobs: "QE2" or building out a natural gas transportation infrastructure? Like the interstate highway system, the telephone and telegraph system, or putting a man on the moon, government spending on building a natural gas transportation infrastructure would pay dividends to ALL Americans for decades into the future. We would re-industrialize our energy, automobile, and manufacturing sectors. We would create real JOBS.  Americans could be filling up with domestically produced natural gas in their garages for about half the current price of gasoline ($1.40/GGE vs. $2.65)! More importantly, the U.S. could easily reduce foreign oil imports by 5,000,000 barrels a day within 5 years. At $80/barrel, this is $400,000,000 a day that would stay in the country. You want to talk about stimulus, try that one!!

    Fake monetary stimulus programs like "QE2" simply devalue the currency, funnel money to a select few of already wealthy Americans, and has no long-term benefit to anyone and in fact, is very detrimental to the long term growth and health of the U.S. currency and economy. But, I am just a lowly engineer and not a Nobel Prize winning economist. However, common sense should tell you that if all it took to make a country an economic success was printing money out of thin air, Zimbabwe and the Weimar Republic would be at the top of the heap.



    But alas, the media avoids the topic like the plague, people like Boone Pickens are ridiculed and chastised, and the great minds of this country keep silent on the issue. So, what does it all mean? Oil, gold, and commodities will go higher. Buy Conoco Philips (COP), Chevron (CVX), Occidental Petroleum (OXY), Marathon(MRO), and gold and silver bullion or ETFs (GLD, SLV).

    But it's 2008 all over again and we all know how that turned out. The bubble will burst, even these suggested investments could plummet as they did in 2008, and the U.S. will be even weaker than it is now. If you have a garden, a pond with catfish in it, a good hunting rifle and some land with game you'll be better off than most. Meantime, batten the hatches. "QE2" and current U.S. economic, energy and military "policy" seem specifically and consciously designed to welcome the U.S. into the category of 3rd world economies. Meantime, we have a solution right in front of our faces: abundant, clean, and cheap natural gas and natural gas powered cars and truck that are a mature and proven technology. All we need is a government to embrace the fuel and the technology. Don't hold your breath. Pickens is on his own. America seems destined to fulfill Pickens' prediction that we will go down as the stupidest country in history for not addressing the economic, environmental, and national security issues brought about by its addiction and reliance on foreign oil imports. Is it possible that American economic policymakers have a vested interest in America staying addicted to foreign oil? How else does one explain their ignoring such a fundamental and basic economic problem? So sad and so unnecessary. Natural gas transportation technology is mature, safe, and proven alternative to gasoline (foreign oil) powered engines. All we need is some economic and energy policy leadership.

    Educate yourself on CNG transportation here:
    http://en.wikipedia.org/wiki/Compressed_natural_gas

    How ironic that today's U.S. dollar drop is being blamed on a strengthening move by Singapore, a country that has embraced natural gas transportation.

    Disclosure: Long COP

    Disclosure: Long COP

    Disclosure: Long COP
    Oct 14 11:13 AM | Link | 2 Comments
  • Obama's Address to the Nation: More Idiotic Energy Policy
    President Obama used his first Oval Office address to reinforce the fact that he simply doesn't have a clue about energy policy. Once again, framing himself as environmentally friendly, he preaches for "clean energy" and the need to electrify our cars. Of course everyone knows these cars must be recharged, and guess what will be consumed to recharge them: COAL. Obama continually tells us the need to move away from fossil fuels while at the same time designing energy policies which will increase our consumption of the dirtiest of them all! Obama and Chu are bought and paid for by coal interests. Name another Nobel Prize winning physicist that believes in the oxymoronic myth of "clean coal". You can't do it. Why? Because most high-school students recognize "clean coal" for what it is: a fairy tale.


                      Obama and Chu: "clean coal" Partner's in Crime

    Meantime, the most abundant, clean, and cheap of all fuels (natural gas) is completely ignored by the supposed environmentalist. What a tragedy. It's a tragedy that both Ford and GM make NGVs but don't sell them in America. It is a tragedy that Fuel Systems Solutions (FSYS) builds its natural gas home refueling appliance in Italy instead of America. It's a tragedy that America sends it energy wealth to Arab oil producers and funds both sides of the war on terror. It's a tragedy that this country will not reach its potential because of greedy, incompetent, and corrupt politicians.

    Making matters worse is Obama's response to the Gulf oil spill. Instead of realizing the BP's well was a huge departure from the norm in terms of well design and management, the Obama administration has apparently painted all oil companies with the same broad brush. The first negative result of his wrong-head moratorium are the canceling of deep-water rig contracts. StatOil (STO) is the latest to terminate two contracts (Transocean and Maersk rigs). Higher unemployment rates will follow next. And finally, the U.S. will be further de-industrialized and our dependence on foreign oil will grow. Combined with the idiotic energy policy pushed last night on national TV, one begins to wonder if the conspiracy theory might have some truth to it. After all, it was the Obama administration that appointed a former BP exec to the MMS. And it was the Obama administration that has dragged its feet on the oil spill response. All a big conspiracy to push his supposed "clean energy" agenda down our throats?

    But what kind of clean energy "policy" is Obama designing when his policies:

    1) increases coal consumption
    2) increases our dependence on foreign oil?

    This is not "policy", this is insanity. We've all been betrayed. Despite the two largest coal and oil environmental disasters in U.S. history (the Kingston, TN coal fly-ash spill and the Horizon disaster), our supposedly super smart environmentally friendly President hasn't learned anything. He is making everything worse. I could not design a worse energy policy if I sat down and tried. Of course, what can we expect from a President whose administration turned down the Dutch offer to supply supertankers designed to surround the leaking oil rig and suck the oil out of the water before it reached shore? Obama has lost all credibility. He is not concerned with the environment nor the American middle class. He is continuing, and expanding, the U.S. government's objective of weakening the middle class and the country's economic future.

    Not one to complain without offering solutions, here is a strategic long-term comprehensive energy policy:

    http://thefitzman.blogspot.com/2008/08/strategic-long-term-comprehensive-us.html

    that would leverage America's abundant, clean, and cheap natural gas reserves to:

    1) reduce foreign oil imports
    2) keep American energy dollars in the U.S. by leveraging natural gas transportation
    3) re-industrialize the country by creating jobs in the auto, energy, and industrial sectors
    4) greatly reduce CO2 and toxic particulate emissions by replacing coal and oil consumption with cleaner and cheaper natural gas
    5) usher in an era of prosperity most Americans have, at this point, given up on
    6) allow us to reduce our imperialistic military policy and spend our wealth in our own country for our own people
    7) allow us to balance our budget and maintain our standard of living

    For American investors, all this means higher oil prices and harder economic times. It is time to get out of all broad S&P500 investments and into energy stocks and precious metals. A few suggestions: Conoco Philips (COP), Chevron (CVX), Petrobras (PBR), StatOil (STO), Exxon Mobil (XOM), Murphy Oil (MUR) and Suncor Energy (SU). Buy on market weakness and rely on the fact that long-term oil prices are going higher. Much higher.

    Disclosure: Long COP, PBR, STO

    Disclosure: Long COP, PBR, STO
    Jun 16 9:43 AM | Link | 1 Comment
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