Consumer spending down in California

A consumer spending index in California has held steady at 96 for three straight months, then dropped to 86.1 in August. This is largely due to high gas prices, which are over $4 per gallon in California. Survey after survey reflects the same thing -- as gas prices rise, consumer spending drops to compensate. This, obviously, has a damaging affect on the economy.

Other factors affect the economy, to be sure. One pundit described it as "a David Lynch economy," which is the best description I've ever heard.

One thing is certain, the president doesn't want low gas prices.

+ Obama's energy secretary, Steven Chu, said in 2008, "Somehow we have to figure out how to boost the price of gasoline to the levels in Europe." This is a coercive government, something expected and even cherished in Europe, but this kind of behavior is scorned here because it is incompatible with freedom. Obama is achieving his goals, as gas prices have more than doubled since he took office just 3.75 years ago -- from $1.79 per gallon to $3.86 per gallon. Obama can't say he's pleased with the high prices, of course. Our Little President has perfected the art of being happy without appearing happy.

"Somehow we have to figure out how to boost the price of gasoline to the levels in Europe."

+ Obama imposed a draconian moratorium on off-shore drilling after the BP spill in the Gulf, based on the findings of a federal government report. A federal judge, in overturning the moratorium, said, "The court is unable to divine or fathom a relationship between the findings and the immense scope of the moratorium." After the moratorium was quashed, Obama vowed to change the language of the order and fight on. Fortunately for us all, he failed. Obama's decision had nothing to do with spilled oil; it had everything to do with him seizing an opportunity to decrease oil production without losing political capital (blame it on a disaster).

"The court is unable to divine or fathom a relationship between the findings and the immense scope of the moratorium."

+ Obama declined to approve the Keystone oil pipeline, citing potential environmental problems with running the line over an aquifer. The fact is, literally dozens of pipelines already crisscross that same aquifer, and one more will make no difference -- see the image below. The president is aware of this. He's counting on your lack of knowledge in November.

+ Obama has invested billions of dollars in the giant sinkhole known as green energy. As painful to admit as it might be, green energy is a miserable failure. We need to continue developing renewables, but we also need to acquire oil from every possible source. The economy will never hum again without this.

Other problems aside, Obama chose to steer the U.S. onto the course of green energy at the worst possible time . Shifting the largest economy in the history of humankind from mature, fossil-based energy to clean energies which are not mature enough to function -- at a time of deep recession -- will go down as one of the greatest blunders in American history. The best way to describe this is inconceivably stupid.

The president isn't trying to hide his goals about energy. "No oil" is his motto, despite what this does to our economy and national security -- 40% of our oil comes from the Middle East, which enrages radical Muslims and has been a factor in several wars.

Romney isn't going to be our greatest president, but he's going to look great compared to his predecessor.