THE ISSUE
As usual, because I just can't get past this, the issue is gas prices. I guess tonight is just going to be a story which illustrates the forces we have working against our free market economy.

Last week, at a gas station in Norwich, CT, gas prices were around $2.60. I fueled up on Tuesday August 30 at $2.75. The next day it was up to $2.85 and by Friday had reached its pinnacle of $3.19. All these increases had to do with supply uncertainty due to Gulf Coast refineries. Perfectly understandable. Gas prices rise about 60 cents per gallon over five days. Now, Labor day comes and crude oil and gas futures fall in Europe. Tuesday and Wednesday post similar declines in the United States (gas futures actually rising about a penny on Wednesday). That same gas station is charging the same $3.19 per gallon even after the proof in the market that the supply shortage is not what it seemed to have been. Apparently, it is ok to raise the price on bad news, but good news has no affect on their price.

Ladies and gentlemen, you have just been introduced to price gouging. Pass this story along to your friends and neighbors and be vigilant. Due to gasoline's inelastic demand it is very succeptible to unscrupulous behavior, much like utilities or cable. My best advice is to conserve fuel when possible and shop around for the lowest price.

TIDBITS
Just to let people know. The mailing list will be up and running soon which will allow people to get The Issue and The Headlines via email before they are even posted on the site. Albeit you will get these in your Inbox only minutes before they are published, but hey, it is still fun to get something before your neighbors do irregardless of the time frame.

Also, the group will be set up soon featuring the merchandise, interview texts and other fun stuff. And to wet the whistle I will reveal a few of the things you can expect to find:

-- Bumper stickers including "I work, therefore I read The Issue", "Honk if you speak English", and the patriotic "Thank a Vet Tomorrow for Keeping You Free Today"

-- Text from my conversation with an ACLU attorney. Read word for word as I give an ACLU guy the business in our soon to come exclusive interview.

THE HEADLINES
Some of the days news events featuring commentary from yours truly, the Mickey Mantle of politics.

Associated Press- "Gas Prices Leap in Katrina's Aftermath"

In a nutshell, retail gasoline prices skyrocketed before any assessment of the actual hurricane damage has even been made.

The best part of this article is the price gouging investigations that are going to start in Georgia and most likely start in New Jersey. In a prior headline I predicted $3 plus gasoline by August 25. I was only off by 7 days. That is why you read this every day, because I am always right.

Associated Press- "Warner Vows to Find Allen Senate Race Foe"

In a nutshell, Democrat Governer Mark Warner of Virginia is searching to find somebody to square off with George Allen for the Senate seat in 2006.

A little free press for my 2008 Presidential candidate. This is comment worthy for no other reason than the wording by the AP. The clown that wrote this actually called Warner the "most formidable Democratic challenger." Ok, so Warner is their top gun, and he obviously can't beat Allen or he would be running against him. So the AP just blew up Warner's effort to find a lame duck Dem to lead to the slaughter. Good job genius!

Associated Press- "Report: Tax Confusion can Cost Students"

In a nutshell, 25% of all taxpayers eligible for education deductions fail to capitalize on these breaks.

Shameless marketing ploy following. Taxpayers missing out on tax deductions saddens me deeply. That is why there are trained professionals like, ahem, me who can get all these tax breaks for you no matter what state you live in. But seriously, I mentioned this tax article to segue to an email query.

A reader emailed me and said he really liked the Estate tax piece and wanted to know my thoughts on the Fair Tax Act championed by famed radio guy Neil Boortz. My reply can be expressed in four words: No Chance It Passes. Like all tax law revisions, the Fair Tax has many points that are good as well as some awful ones. But no politician will ever back something as radical as the Fair Tax and it will go nowhere. Hope this helps, and thanks alot for reading.

THE ISSUE
Although the temptation is here to gloat about my being 100% accurate in my assessment of crude oil speculation, I will not do so. I will make note, however, that crude oil shot through the roof due to the hurricane in the Gulf of Mexico. I mean, hurricanes are such a rare occurence that we should assume the Apocolypse is coming.

The reaction to the hurricane shows the hand of the price gougers operating at the Mercantile Exchange. Don't believe me? Consider this. Crude oil on the mercantile markets is unrefined. Refiners buy contracts to have oil delivered in the future, called "futures", or they can buy it on the spot market and take delivery now. These refineries produce the gasoline, heating oil, etc. that we use in our daily lives. This is a wholesale market and is a commerce market. For you liberals reading this, commerce means business to business sales. Well, how is it then that refining capacity can be diminished due to a hurricane, but the wholesale price of crude rise in the process?

If Louisiana refineries shut down because of flooding there will be less demand because there simply will not be the same level of production. Demand has an inverse relationship to supply. In other words, if demand decreases, supply increases. When this happens, market forces drive the price down.

In this case, there is actually a supply shortage created in the Gulf of Mexico that would help to counteract the loss in demand. Lowered supply along with lowered demand would keep the equilibrium in the market; which basically means the price should have not moved or just slightly adjusted.

Unfortunately, this is not the case. Rampant speculation has led to large upward movement in the futures market. Because of these people the price of crude will go nuts over things like hurricanes and violence in the Middle East. Hurricanes and the wacko Middle East have been around way before oil and it never seemed to make a difference before. Think about all the times when some idiot blew himself up in the middle of Israel, or when some Iraqi dictator invaded oil rich Kuwait, did anything happen to the gas price then? Think about all the major Atlantic hurricanes that have slammed into the Gulf of Mexico. Did you suddenly have to choose a tank of gas over your next meal? The fact is these people are using the same money grab tactics with oil that they do with stocks. The problem is the few who get rich ruin the livelihood of the many who change their lifestyles in order to make their commute.

THE ISSUE
I know you can't help but see the images of the Israeli troops hauling their compatriots out of Gaza and the West Bank. It is heartbreaking and will continue to be so until it is proven that evacuation was the correct move to make. I think it was, and I give Sharon credit for having the stones to make it.

By giving the Gaza and a portion of the West Bank to the Palestinians Sharon helped form a de facto Palestine. Anything that comes from that area is now 100% Palestinian. Most importantly, any weapon fired from that area is 100% Palestinian. There are no more Jewish settlers to stir the pot and the tired Palestinian excuse of "they are on our holy land" will no longer fly. Abbas, Hamas, Hezbollah and the other Muslim leaders in that area now must consider this fact before attacking the Israelis.

Secondly, this move puts the ball in the Palestinian court. As I mentioned above, the holy land excuse will no longer work. All rational people said that giving the Palestinians their own country would not inspire them to cease fighting with Israel. The only people who said this whole movement was nationalistic were the Palestinians and the appeasing liberals. Are the Palestinians and the appeasing liberals ever right? No, and this continues the trend. Which leads me to the third point.

National Defense. Moving the border inland makes it easier to defend. Israel no longer has to defend outposts in the middle of Palestinian-occupied zones. All residents of the settlements are back in the safety of the Jewish held areas. This is crucial because any attack (and there will be one) by Hamas or other terrorist groups will have to be an attack on undisputed Israeli territory. This will lead to a furious response by Israel which will be, you guessed it, in Gaza. No Jews in Gaza, no need to be diplomatic and play nice.

Without a question, this move by Sharon was a bold one to expose the Palestinians and their leadership to be the Jew hating terrorists they really are. They don't want their own country, they want to kill Jews. The only question I have is this. After the Palestinians get the Gaza Strip and their own country, and after they attack Israel again; will the leaders of the free world finally admit to who these people really are?

THE ISSUE
The issue is the Estate Tax. The House did the right thing by voting to repeal this atrocity, but as usual, the Senate shows no backbone. I expect to see the Democrats support stealing from the citizens, but unfortunately the Republicans in the Senate are also in on this. So it is only right that I examine this, since the guy that sold me my degrees told me about this stuff once or twice.

First off, the basics. In 2005 the estate tax applies to any estate valued at over $1.5 million. This exemption increases to $2 million in 2006-08 and $3.5 million in 2009. The 2005 maximum tax rate is 47%. It falls to 46% in 2006, and 45% from 2007-09. The tax is repealed in 2010 before being rolled back to its "pre change" limits.

Some people will say this scale was a compromise, but I don't think so. President Bush has been steadfast in his effort to reshape the tax code and I think this legislation was passed to buy him time to make the repeal permanent. Evidence of this was the child tax credit. This credit was scaled similarly but ended up jumping to the maximum level the year after the scale was passed, 5 years before it was supposed to attain the maximum amount.

But how is all this relevant? You have to look beyond the fact the Senate will take this up in about 2 weeks. Also beyond the moral barrenness of any government that would pillage the pockets of its deceased citizens. The Estate Tax is the biggest indication of what I call Economic Social Policy. Conservatives believe you never use ESP (for you liberals, I'm not referring to extrasensory perception). Liberals think it is the greatest thing since sliced bread.

As an illustration, take this quote I culled from a Birnbaum and Weisman article in the Washington Post: "Wealthy people will get tax cuts THEY DON'T NEED at the expense of IMPORTANT PUBLIC SERVICES like food stamps and health care." (Matthew Gardner of the Institute on Taxation and Economic Policy- Emphasis added).

So basically, this Communist is saying that since the wealthy are wealthy they don't need to pass that 47% of their money on to heirs. He is also saying that government knows better than they do what is important to spend the money on. Now don't gasp about the "C" word. This guy obviously is a strong advocate of the social redistribution of wealth, which is after all, the fundamental tenet of Communism. And Communism, as we know, doesn't work. But I digress.

The Tax Policy Center reported that in 2003 the tax only applied to 28,600 estates. It is only the extremely rich who are getting handled by this. So anybody that wants to argue "tax cuts for the rich", like our Comrade from the ITEP does, needs to realize that 98.8% of people are already exempt. Even the vast majority of the rich are not affected by this. Furthermore, a compromise (i.e; no backbone) bill from Republican Senator John Kyl would lower the estate tax to 15% permanently. This bill would make the estate tax rate equal to the rate on capital gains and dividends. That is a great start, but why be so half hearted about it?

Lowering this tax rate from 47% to 15% and making the exemption $3.5 million would put about 3/4 of the money back in the hands of the heirs, according to the Joint Committee on Taxation. Thats great, but why not push for the final 1/4?

For a tax that only affects 1.2% of the population, how can it not be politically expedient to do the right thing? Even the so called Conservatives in the Senate can't get passed the greed and power of government. To me, this is the financial version of the Second Amendment fight. If we as a people let our elected officials uphold a tax that is wrong on all levels of society, then the flood gates truly will open. I see no moral justification in taking nearly half of the wealth amassed by certain people in their lives, and I see just as little moral justification in taking only 15% instead. These Senators were elected to serve all the people, including those 28,600 heirs who have just been robbed.

THE HEADLINES
Associated Press: "Oil Prices Rise to Record $65 a Barrel"

In a nutshell, oil prices hit $65 before ending the day at a record $64.90 per barrel. Gasoline inventories fell by 2.1 million barrels.

These Wall Street types really steam my beans. Nobody gives a crap about gasoline inventories and nobody cares about the futures market. It is these idiots at Nymex that are speculating all the time that drives the prices up. Do you really think your average consumer has any clue how much gasoline is stocked in inventories? Whats more, do you really think the average consumer knows or cares how the futures market works? Don't blame the booming American and Chinese economies when it is you Volvo driving yuppies who are doing this. The American economy was in a huge bear market 5 years ago and gasoline was about a dollar a gallon. The middle east was a mess then just like it is now. How do you explain $1 gasoline under similar economic conditions as we have now and our gas is approaching $2.50 per gallon?

Associated Press- St. Joseph, Mo.: "Desperate Teens Sell Themselves on Ebay"

In a nutshell, 2 college kids sold themselves on Ebay to raise money for college. The kids will do chores for a week. The final bid was $246.50.

Good, something funny to calm me down. $246.50? Is that legal? For 2 people working a 40 hour work week that comes out to $3.08 an hour. Give it a week or two and that $3.08 won't even buy them a gallon of gas. The good news is if all college students did this it would price the illegal immigrants out of the chore market.

Associated Press- Cincinnati: "Players Rally Around Child as Grandfather Collapses"

In a nutshell, this is a few days old (August 5), but very interesting. A 6 year old boy at the Reds game lost his grandfather to a heart attack in the 7th inning. Stadium security brought him to the bullpen where he hung out with players, participated in post game high 5's and went to the clubhouse for autographs until his parents showed up to get him.

We watch sports for moments like this. The rare times when these larger than life stars remind us that they still are caring human beings. While the rest of baseball is marred in scandal, these players provided a lifelong memory to a boy who did not yet know he had just lost somebody close.

THE ISSUE
The gamesmanship has already started for the 2006 Congressional elections and I find nothing funnier than the race in New York for the Senate.

The libs have already come out attacking Jeanine Pirro and sadly it is actually refreshing. The liberal media spends so much time bashing President Bush that I am surprised they actually noticed Pirro. And the best thing is this: They wouldn't attack her if they didn't think she was actually a threat to Hillary.

See Hillary isn't like Bill. The feminine Clinton doesn't have that charm and charisma. She is a yelling, raspy voiced, cunning, shrill person that even rank and file Democrats don't like.

Pirro, however, is a Westchster District Attorney with upstate roots and a bit of a social liberal. This woman is tough on crime, conservative on taxes and is....pro choice. What will Hillary do if she can't campaign against somebody the abortion crowd hates?

Back in 2000, Planned Parenthood would have stayed neutral had she been running against Guliani, a pro choice Republican. That was an important endorsement as Clinton was able to use that to beat up Rick Lazio over the patient's bill of rights. (New York Times, August 3, 2000). But what now? Not only is Pirro pro choice, she is a pro choice woman.

What I like best about Pirro is she is willing to call out Hillary on how she is selling out New York state for a trip to the White House. She will make this race fun to watch, and expensive for Hillary. Yes I am aware that she is not a true conservative, but it's New York, I'll take what I can get.

Win or lose I think nothing good can come of this for Hillary. My hope is that the Republican vote, the anti-Hillary vote and the undecideds who just want a Senator to serve their state will come out in full force for Pirro. If that happens, and Pirro takes 47% or 48% of the vote, Hillary will have some serious egg on her face.

So for those keeping score, my endorsement tally is up to 2...George Allen for President in 2008 and Jeanine Pirro for Senator in New York in 2006.

THE HEADLINES
Now a quick look and commentary on the issues of the day:

Associated Press-Boston: "Teen Piercing Sparks Near Fatal Infection"

In a nutshell, a mother was arrested for not seeking medical attention for her 13 year old daughter who pierced her own belly button. Now some lib attorney is trying to get her off on account she is unfit to stand trial.

Are you kidding me? This is the epitome of what the American Left stands for. I hope somebody on that legal team steps back and says "Hey guys, you do realize that we are defending bad parenting and not holding people accountable for their actions right?" Fat chance.

Associated Press- San Quentin, CA: "San Quentin Has Largest Riot Since 1982"

In a nutshell, 42 inmates were injured when white and hispanic inmates rioted in San Quentin State Prison.

But ask a liberal and I am sure they will tell you that these people are being rehabilitated and will reintegrate just nicely into society.

THE ISSUE
I would like to start off this endeavor by talking about the most important issue in our country. It is the basis for having a country, keeping a stable economy and protecting the citizenry. That issue is border control. At the moment, we don't have any. And quite frankly, I have been astonished at the lack of attention our government has paid to this.

Despite the widespread appeal and success of The Minutemen Project, Congress has taken no steps towards locking down our borders. Our President has been too busy finding jobs and Social Security numbers for the people who come here to work that he has failed to consider the ones that cross to do us harm. The problem is, this country should be closed to both.

Our border patrol should be free to use lethal force to prevent unlawful entry into this country. And due to this, I strongly believe the border should be patrolled by state militias and National Guard units. I do agree with Congressman Culberson's bill to authorize a civilian militia in the border states, but I would rather it be a militarily trained operation.

This, of course, could never happen thanks to the Anti-American scum that comprises the ACLU and those gutless wonders on the Left that do their bidding. Which is why this is such an important issue politically for conservatives.

The American people do not trust the Left and the Democratic party to keep us safe. This was reinforced in the 2002 midterm elections and the 2004 elections. In a time of war, the American people spoke out that they trust Conservative Republicans to get the job done and protect Americans. The war effort may not yield dividends for three straight campaigns, therefore, border control is a tailor made issue for 2006 and 2008.

Republicans need to come out in support of tough border policies, and not moderate garbage that grants amnesty and rewards immigrants for sneaking past our ill-resourced border patrol. Stand up to the Left, stand up to the illegal aliens and stand up for the people of this country. Any Congressman that won't do that needs to be replaced by a real man of the people.