WEBVTT 1 00:00:15.919 --> 00:00:19.359 Good morning, Welcome to the Eastman Financial Report. Time Dan Eastman, 2 00:00:19.399 --> 00:00:24.359 your host, and today is Tuesday, August fourth, twenty twenty six. 3 00:00:24.920 --> 00:00:26.160 Thank you so much for tuning in. 4 00:00:26.320 --> 00:00:28.920 As always, we appreciate your viewership here at the Eastman 5 00:00:28.960 --> 00:00:31.640 Financial Report, as well as throughout the day on all 6 00:00:31.679 --> 00:00:34.840 of the amazing programming you see at worldviewtube dot com 7 00:00:34.880 --> 00:00:36.600 and of course here at Worldview Radio. 8 00:00:37.039 --> 00:00:39.640 As you know, we are a Christian broadcasting. 9 00:00:39.000 --> 00:00:41.799 Network and it's our mission, our ministry, our passion, and 10 00:00:41.840 --> 00:00:45.200 our goal to bring to the great marketplace of ideas 11 00:00:45.320 --> 00:00:48.359 the news and information of the day from a Christian perspective. 12 00:00:48.719 --> 00:00:50.799 And that's what we've been doing here on this network 13 00:00:50.840 --> 00:00:53.640 since two thousand and six, and we will continue to 14 00:00:53.640 --> 00:00:55.679 do that until the Second Coming. And of course we 15 00:00:55.759 --> 00:00:58.520 follow in the great tradition of the Apostles who two 16 00:00:58.560 --> 00:01:00.960 thousand years ago went about out the Middle East, the 17 00:01:01.039 --> 00:01:03.399 very same Middle East we hear about the news today 18 00:01:03.840 --> 00:01:06.159 and spread the good news of the Gospel message. And 19 00:01:06.239 --> 00:01:08.079 when they were out there doing that, and they were 20 00:01:08.159 --> 00:01:11.599 spreading this message throughout the area, they were not charging 21 00:01:11.599 --> 00:01:14.519 a paywall or a subscription. They didn't sell tickets. It 22 00:01:14.599 --> 00:01:18.159 wasn't an entertainment venue. It was a very important message 23 00:01:18.239 --> 00:01:20.920 of the Gospel freely given, and I might point out, 24 00:01:20.959 --> 00:01:24.079 at great cost to the message, the bearers of the message, 25 00:01:24.480 --> 00:01:28.000 the apostles, took a pretty rough time delivering that message 26 00:01:28.040 --> 00:01:30.599 of good news to the people who just simply don't 27 00:01:30.640 --> 00:01:32.959 want to hear. And that's why we continue in this 28 00:01:33.040 --> 00:01:35.879 ministry today two thousand years later, as we will continue 29 00:01:35.920 --> 00:01:39.120 to preach the Gospel until the Second Coming, and in 30 00:01:39.159 --> 00:01:43.120 our ministry we do that effectively by taking the news 31 00:01:43.120 --> 00:01:45.599 and information of the day and bringing it to the 32 00:01:45.640 --> 00:01:50.040 great and ever expanding marketplace of ideas from a Christian perspective. 33 00:01:50.159 --> 00:01:51.680 And that's what we do, and that's what we have 34 00:01:51.799 --> 00:01:54.000 been doing. Of course, as I said, since two thousand 35 00:01:54.040 --> 00:01:55.879 and six, if you'd like to help. 36 00:01:55.760 --> 00:01:58.280 Us in this ministry, you can do that. It's very simple. 37 00:01:58.319 --> 00:02:02.319 You can go to Worldview Foundation and make a donation. 38 00:02:02.599 --> 00:02:05.359 You can also go to WVW foundation dot com takes 39 00:02:05.400 --> 00:02:08.000 you to the same place, and when you do that, 40 00:02:08.080 --> 00:02:10.319 you can sign up for a one time donation or 41 00:02:10.400 --> 00:02:14.680 you can sign up for a monthly plan which helps 42 00:02:14.719 --> 00:02:17.199 us in a way because it better allows us to 43 00:02:17.199 --> 00:02:20.039 flatten our revenue curve a bit and better match our 44 00:02:20.080 --> 00:02:22.680 costs to revenues, and that helps us keep our bottom 45 00:02:22.680 --> 00:02:25.479 line positive. And because we keep our bottom line positive, 46 00:02:25.479 --> 00:02:28.560 we don't have a paywall or a search arge or 47 00:02:28.599 --> 00:02:31.400 a fee or a subscription to watch our daily content. 48 00:02:31.599 --> 00:02:33.759 And that's our ministry. So if you like to help us, 49 00:02:33.800 --> 00:02:36.680 you can do that by making a donation. You can 50 00:02:36.800 --> 00:02:40.120 also help this ministry greatly by doing business with the 51 00:02:40.280 --> 00:02:43.719 vendors you see advertising throughout the day on our network. 52 00:02:43.879 --> 00:02:46.400 As you know, we don't sell blocks of advertising time, 53 00:02:46.520 --> 00:02:49.639 and we're not a commercial network in the sense. But 54 00:02:50.439 --> 00:02:52.360 what we do is we find companies we know, when 55 00:02:52.400 --> 00:02:55.560 we trust, we partner with them, and then when you 56 00:02:55.560 --> 00:02:57.800 do business with them, you buy their goods and services. 57 00:02:58.039 --> 00:03:00.319 A small portion of the proceeds comes back to us 58 00:03:00.319 --> 00:03:03.080 in the form of a commission, and that also enhances 59 00:03:03.080 --> 00:03:05.520 our bottom line and keeps us allows us to continue 60 00:03:05.560 --> 00:03:08.919 broadcasting for free. So it's another way to help this ministry, 61 00:03:08.919 --> 00:03:10.960 and you get great products from great vendors. At the 62 00:03:10.960 --> 00:03:13.719 same time. There's a third way you can help the ministry, 63 00:03:13.759 --> 00:03:17.400 and more importantly, you can help yourself with this third path, 64 00:03:17.840 --> 00:03:21.000 and that is to subscribe to our Vault product. Now 65 00:03:21.000 --> 00:03:23.120 there's a little paywall there. It will cost you eight 66 00:03:23.159 --> 00:03:25.400 dollars a month, or maybe ten if you pay month 67 00:03:25.439 --> 00:03:28.120 to month. But by subscribing to the Vault, we are 68 00:03:28.199 --> 00:03:33.639 building a community and a network of viewers and people 69 00:03:33.639 --> 00:03:36.439 that are involved in this ministry as members like a church, 70 00:03:36.479 --> 00:03:39.520 a congregation. And the Vault is an amazing collection. If 71 00:03:39.520 --> 00:03:42.400 you look at the bottom of the screen, it's worldviewtube 72 00:03:42.439 --> 00:03:44.960 dot com slash vault. If you type that into your 73 00:03:44.960 --> 00:03:48.680 browser and you go to worldviewtube dot com slash vault, 74 00:03:48.719 --> 00:03:51.080 it takes you right to the vault product. But it's 75 00:03:51.120 --> 00:03:55.280 an amazing collection of information. It's remarkable. As I mentioned, 76 00:03:55.280 --> 00:03:57.840 we started this in two thousand and six and Brandon 77 00:03:57.879 --> 00:04:02.840 House has written over sixteen books now, He's had conferences, events, seminars. 78 00:04:03.400 --> 00:04:06.599 All of that information is now digitized and lives within 79 00:04:06.759 --> 00:04:07.199 the vault. 80 00:04:07.360 --> 00:04:09.759 So you put precious things in treasures right in a vault, 81 00:04:09.759 --> 00:04:12.800 you'll lock them up. Well, we have that vault content. 82 00:04:12.879 --> 00:04:15.319 And I will also point out the East Financial Report 83 00:04:15.360 --> 00:04:17.839 reruns are in that very same volved. But the point 84 00:04:17.959 --> 00:04:21.519 is we have captured digitally the entire thirty plus years 85 00:04:21.519 --> 00:04:25.319 of ministry and it is now an ever expanding platform 86 00:04:25.399 --> 00:04:27.399 of information. So if you want to hear what we 87 00:04:27.480 --> 00:04:30.240 had to say about a certain news story, or maybe 88 00:04:30.279 --> 00:04:34.000 the Iranian situation, or any number of the issues that 89 00:04:34.000 --> 00:04:36.879 Brandon House has been talking about, it's all in there. 90 00:04:36.959 --> 00:04:39.319 And the same thing with the economic and financial information, 91 00:04:39.519 --> 00:04:40.360 it's all. 92 00:04:40.120 --> 00:04:40.720 In the vault. 93 00:04:40.759 --> 00:04:43.160 You think, wow, for eight dollars a month, that's quite 94 00:04:43.199 --> 00:04:46.240 a bargain. But how will I ever find something I'm 95 00:04:46.279 --> 00:04:48.319 looking for after thirty years of information? 96 00:04:48.800 --> 00:04:50.079 How will that be possible? 97 00:04:50.240 --> 00:04:53.639 Well, we have also developed an amazing search tool that 98 00:04:53.720 --> 00:04:56.360 allows you to search. You can search by topic or 99 00:04:56.439 --> 00:05:01.199 Bible passage, or by theme, whatever, whatever you're searching for, 100 00:05:01.759 --> 00:05:04.360 that is available in the vault, and it's a very 101 00:05:04.560 --> 00:05:08.360 very interesting search program because it's very highly sophisticated. We've 102 00:05:08.399 --> 00:05:13.560 also added Bible study when as Bible courses. We now 103 00:05:13.600 --> 00:05:16.079 have the Book of Revelations inside the vault as well, 104 00:05:16.639 --> 00:05:20.079 and if you are would go into the vault and subscribe, 105 00:05:20.360 --> 00:05:23.240 you can work through the entire course. It's amazing, and 106 00:05:23.279 --> 00:05:29.199 that will be a a bigger collection of books as 107 00:05:29.240 --> 00:05:31.720 we go along, So it's quite a it's quite a 108 00:05:31.800 --> 00:05:34.279 it's a wonderful product, and you should really think about 109 00:05:34.319 --> 00:05:37.439 subscribing to become part of this ministry, a bigger part 110 00:05:37.560 --> 00:05:38.680 or an integrated part. 111 00:05:39.439 --> 00:05:41.399 Keep in mind, we also know people. 112 00:05:41.160 --> 00:05:44.560 That we know and love in our lives who are struggling, 113 00:05:44.639 --> 00:05:46.480 and they might have maybe a health issue or a 114 00:05:46.519 --> 00:05:50.680 personal issue, or money issue, a family issue. Well give 115 00:05:50.720 --> 00:05:53.800 them a gift certificate or a gift subscription to the 116 00:05:53.879 --> 00:05:58.120 Vault because it will really help them in their personal lives, 117 00:05:58.199 --> 00:06:01.079 and again it expands the Vault capacity. 118 00:06:01.439 --> 00:06:02.759 It's really a wonderful product. 119 00:06:02.800 --> 00:06:04.519 So if you're looking for a way to keep our 120 00:06:04.560 --> 00:06:07.720 ministry healthy and robust and fresh, you can make a 121 00:06:07.720 --> 00:06:09.360 donation always appreciated. 122 00:06:09.800 --> 00:06:11.800 You can do. 123 00:06:11.759 --> 00:06:14.240 Business with the vendors you see advertising throughout the day 124 00:06:14.240 --> 00:06:17.079 on our network. And of course you can and should 125 00:06:17.160 --> 00:06:19.439 subscribe to the Vault because it's a great product. It's 126 00:06:19.480 --> 00:06:21.639 really a wonderful thing, and you will be part of 127 00:06:21.639 --> 00:06:25.399 a much bigger and growing and interactive ministry by having 128 00:06:25.480 --> 00:06:26.279 your own subscription. 129 00:06:26.360 --> 00:06:27.120 And like I said, for. 130 00:06:27.079 --> 00:06:29.959 Eight dollars a month, you probably can't even find one 131 00:06:30.000 --> 00:06:32.439 of those fancy cups of coffee anymore for eight dollars. 132 00:06:32.439 --> 00:06:35.199 Certainly not taking someone to lunch for eight dollars, but 133 00:06:35.560 --> 00:06:36.639 for eight dollars a month. 134 00:06:36.680 --> 00:06:39.839 You have access to the entire ministry. That's really fantastic. Well, 135 00:06:39.839 --> 00:06:42.959 I'm going to jump into the news here today, and. 136 00:06:42.959 --> 00:06:44.959 Of course there's a lot of negotiation going on in 137 00:06:45.040 --> 00:06:49.759 the Iranian situation. Our own Treasury secretary has come out 138 00:06:49.800 --> 00:06:53.519 and made comments and of course where we're looking, which 139 00:06:53.519 --> 00:06:55.720 is interesting because usually it's a secretary of State and 140 00:06:55.759 --> 00:06:57.319 the president bee handle these things. 141 00:06:57.480 --> 00:06:58.079 But there's a. 142 00:06:58.000 --> 00:07:01.560 Lot riding on the Middle East, of course, and the 143 00:07:01.560 --> 00:07:05.199 administration has come forth with offer after offer after offer, 144 00:07:05.279 --> 00:07:07.639 and of course there are agreements and there are breaches, 145 00:07:07.720 --> 00:07:09.959 and it's back and forth, and then the shooting starts. 146 00:07:10.319 --> 00:07:12.920 And throughout all of this, I've been talking about how 147 00:07:13.079 --> 00:07:16.279 the oil market reacts, because that's the economic component of 148 00:07:16.319 --> 00:07:17.040 the Middle East. 149 00:07:17.279 --> 00:07:20.160 There's the political component of the Middle East, where President 150 00:07:20.199 --> 00:07:25.439 Trump is very carefully trying to sequester and defund the 151 00:07:26.199 --> 00:07:30.240 terrorism that's been bubbling forth for the last forty eight 152 00:07:30.319 --> 00:07:33.600 years now, and by shifting oil production to the Western 153 00:07:33.639 --> 00:07:38.079 Hemisphere and other places, he's effectively defunding the Iranians and 154 00:07:38.279 --> 00:07:42.519 other naughty players. That will allow a lot less money 155 00:07:42.560 --> 00:07:45.480 into that region, which will fund a lot less terrorism 156 00:07:45.720 --> 00:07:49.319 and shifting the economic balance away to the more modern 157 00:07:49.439 --> 00:07:51.920 world where economics. 158 00:07:51.319 --> 00:07:57.800 Is more important than a radical, radical religious theory. So 159 00:07:58.319 --> 00:07:59.399 it's a very important time. 160 00:08:00.079 --> 00:08:03.079 As I've been talking over the weeks and the months, 161 00:08:04.000 --> 00:08:07.959 our interest is in the oil component because the oil 162 00:08:08.000 --> 00:08:09.680 component is a very, very. 163 00:08:09.720 --> 00:08:11.680 Big part of the global economy. 164 00:08:11.959 --> 00:08:14.439 And of course, when the shooting started and the more began, 165 00:08:14.600 --> 00:08:17.120 the oil prices surged up. We had Brent that I 166 00:08:17.160 --> 00:08:19.680 think one hundred and fourteen dollars a barrel, and we 167 00:08:19.759 --> 00:08:23.920 had West Texas Intermediate was well, you know, over one 168 00:08:23.959 --> 00:08:27.000 hundred dollars a barrel, and everybody expected the worst because 169 00:08:27.240 --> 00:08:29.879 when you think about the Persian Gulf and that that 170 00:08:30.079 --> 00:08:34.559 comes that drains the basin, the Abian Basin, and the 171 00:08:34.600 --> 00:08:38.399 water flows through that little twenty one mile wide strip 172 00:08:38.480 --> 00:08:41.559 of water, the Horn moves straight and out into the 173 00:08:41.639 --> 00:08:44.960 effectively the Indian Ocean where the Arabic Sea. But the 174 00:08:45.000 --> 00:08:47.399 point is that is the route that all the oil 175 00:08:47.399 --> 00:08:49.399 coming out of the golf takes through the hornles. We 176 00:08:49.399 --> 00:08:51.799 all know this, and when the shooting started, the prices 177 00:08:51.840 --> 00:08:54.320 went up because nobody was quite sure what the impact 178 00:08:54.320 --> 00:08:56.840 would be on the supply of crude oil on a 179 00:08:56.879 --> 00:09:00.240 global basis, they had about twenty percent. Back in the day, 180 00:09:00.279 --> 00:09:02.519 about twenty percent of the oil was flowing through the 181 00:09:02.519 --> 00:09:05.559 horror movie. So twenty percent is a material disruption in 182 00:09:05.600 --> 00:09:09.679 the supply chain. And you'd expect if supply of good 183 00:09:09.799 --> 00:09:13.679 drops while the demand stays constant, that the quantity and 184 00:09:13.720 --> 00:09:16.080 the price metrics would shift and lo and be old 185 00:09:16.360 --> 00:09:18.759 price would go up, and it did in reaction to 186 00:09:18.799 --> 00:09:21.600 the bellum of the war. But then we've seen the 187 00:09:21.639 --> 00:09:26.240 prices collapse back down. Well, today the prices are down very, very, 188 00:09:26.399 --> 00:09:28.320 rather dramatically from even yesterday. 189 00:09:28.679 --> 00:09:30.039 I'll rattle off the numbers. 190 00:09:30.320 --> 00:09:33.679 West Texas Intermediate is down to seventy five dollars a barrel, 191 00:09:34.200 --> 00:09:36.960 and that's getting close to the lift cost for some 192 00:09:37.080 --> 00:09:40.399 of the latecomer producers. It's not a good price for oil. 193 00:09:40.799 --> 00:09:43.399 Certainly better than sixty eight dollars a barrel, but seventy 194 00:09:43.440 --> 00:09:46.360 five is not as good as it was even earlier. 195 00:09:46.919 --> 00:09:49.320 Earlier in the week at eighty nine, we were thinking 196 00:09:49.320 --> 00:09:51.519 we see a little bulge. But the point is oil 197 00:09:51.559 --> 00:09:55.480 prices once again are reacting because there is no constraint 198 00:09:55.600 --> 00:09:58.039 in the supply system. And keep in mind, I say 199 00:09:58.039 --> 00:10:01.480 this over and over again, who buy barrels of crude oil. 200 00:10:01.559 --> 00:10:04.480 There's only one kind of buyer in the whole world. 201 00:10:04.720 --> 00:10:08.279 The only people interested in buying crude oil are refiners. 202 00:10:08.600 --> 00:10:10.480 Nobody else buys it. You don't buy a barrel of 203 00:10:10.519 --> 00:10:12.360 crude oil and set it out in the garage and 204 00:10:12.679 --> 00:10:13.519 do I. 205 00:10:13.600 --> 00:10:14.679 Nobody wants crude oil. 206 00:10:14.679 --> 00:10:17.120 As a matter of fact, before refiners were invented and 207 00:10:17.159 --> 00:10:19.320 they had the idea that you could turn this gooey 208 00:10:19.440 --> 00:10:24.679 stuff into something of value, farmers who were unfortunately not 209 00:10:24.879 --> 00:10:28.320 blessed in having oil oozing around on their land felt 210 00:10:28.360 --> 00:10:30.240 that they had been dealt a raw hand by the 211 00:10:30.279 --> 00:10:33.360 lord because they had been given farmland or purchased farmland 212 00:10:33.399 --> 00:10:37.600 that was effectively worthless. Is this black, guey liquid was 213 00:10:37.679 --> 00:10:41.519 oozing around and interfering with their cropping and their production. Well, 214 00:10:41.519 --> 00:10:44.039 of course that all changed as people began to realize 215 00:10:44.080 --> 00:10:47.200 the value of distilled oil, but it remains today that 216 00:10:47.240 --> 00:10:50.240 the only people who buy distill that the only people 217 00:10:50.240 --> 00:10:53.799 who buy raw crude oil are the refineries. And when 218 00:10:53.840 --> 00:10:55.799 you see these prices coming down, and of course I'm 219 00:10:55.840 --> 00:10:58.799 talking the spot price. The spot price is a theoretical 220 00:10:58.840 --> 00:11:01.200 price of what a barrel of oil would cost right now. 221 00:11:01.919 --> 00:11:04.000 But if you also look at the NIMEX contracts, which 222 00:11:04.039 --> 00:11:07.600 are much more sophisticated, and those are for future delivery 223 00:11:07.639 --> 00:11:10.519 of oil, you just simply see the price is settling 224 00:11:10.600 --> 00:11:14.679 back down to a level that is fairly close to 225 00:11:14.960 --> 00:11:17.480 when this war began. Think as a matter of fact, 226 00:11:17.519 --> 00:11:20.559 I think West Texas Intermediate was trading at about sixty 227 00:11:20.600 --> 00:11:23.919 eight dollars a barrel or so until the Ranian situation, 228 00:11:24.080 --> 00:11:26.360 and then the price soared, and of course everybody who 229 00:11:26.440 --> 00:11:28.519 could pump a barrel of oil out of the ground 230 00:11:28.600 --> 00:11:32.039 immediately started pumping to capture that price increase. 231 00:11:32.440 --> 00:11:34.159 And of course now it's settling back. 232 00:11:34.200 --> 00:11:36.679 And when we see that in the spot prices and 233 00:11:36.799 --> 00:11:39.960 in the forward contract prices, we know that the people 234 00:11:39.960 --> 00:11:43.399 who actually buy oil, refine oil, sell oil to gas 235 00:11:43.440 --> 00:11:47.799 stations are not seeing a supply constraint and therefore they 236 00:11:47.799 --> 00:11:51.639 have written off psychologically in their minds, the whole Persian 237 00:11:51.679 --> 00:11:56.279 Gulf because that risk has been analyzed, that risk has 238 00:11:56.320 --> 00:12:02.399 been quantified, new supply routes have been identified, and effectively 239 00:12:02.960 --> 00:12:06.120 it doesn't it's not having an effect on their own business. 240 00:12:06.159 --> 00:12:09.679 Now West Texas is seventy five brent oil that was. 241 00:12:09.679 --> 00:12:12.000 The oil that was one hundred and fourteen dollars last 242 00:12:12.039 --> 00:12:13.840 week or the week before when there was a little 243 00:12:13.840 --> 00:12:17.279 bullet in the action back down to seventy nine, which 244 00:12:17.320 --> 00:12:19.799 is a very small delta to West Texas. 245 00:12:19.919 --> 00:12:21.000 And keep in mind Brent. 246 00:12:22.480 --> 00:12:24.639 They are the ones that have to drill to the 247 00:12:24.639 --> 00:12:26.840 bottom of the ocean and then pully oil up, and 248 00:12:26.879 --> 00:12:28.879 then they have to ship it out to Scotland and pipes, 249 00:12:28.879 --> 00:12:30.080 and then they have to load it up. 250 00:12:29.960 --> 00:12:30.720 And ship it away. 251 00:12:30.879 --> 00:12:32.720 It costs a lot more to get Brent out of 252 00:12:32.720 --> 00:12:34.960 the earth than it does West Texas, and that's why 253 00:12:34.960 --> 00:12:37.519 there's always a delta, and Brent is more expensive. 254 00:12:37.559 --> 00:12:38.320 It's just logic. 255 00:12:38.320 --> 00:12:40.960 It's just more hassle to get the oil out of 256 00:12:41.000 --> 00:12:44.320 the ground. I do notice that Mexico is at eighty 257 00:12:44.600 --> 00:12:47.320 and I noticed that our dear friends in Canada who 258 00:12:47.360 --> 00:12:49.919 have not been sending smoke for the last couple of weeks. 259 00:12:50.240 --> 00:12:52.320 I guess the smoke signals have ended and there at 260 00:12:52.399 --> 00:12:55.679 least the wind is shifted. King Charles the Third must 261 00:12:55.679 --> 00:12:58.120 have gotten the message that his dear cousins to the 262 00:12:58.159 --> 00:13:02.799 south were displeased being gassed out with smoke. The point 263 00:13:02.840 --> 00:13:05.000 is they're at sixty seven, which is the very low 264 00:13:05.039 --> 00:13:07.559 price for Canadian It's cheaper than it was yesterday. But 265 00:13:07.600 --> 00:13:10.320 the question in my mind is why is Mexican oil 266 00:13:10.440 --> 00:13:14.240 doing so well in relation to the other three components. 267 00:13:14.240 --> 00:13:16.960 And keep in mind, in the United States, ninety seven 268 00:13:17.000 --> 00:13:19.879 percent of the gasoline that we use in our vehicles 269 00:13:20.240 --> 00:13:22.720 comes from only three countries. 270 00:13:22.799 --> 00:13:24.320 Number one the Canadians, and they're. 271 00:13:24.200 --> 00:13:26.960 Selling it cheap at sixty seven. Number two the great 272 00:13:27.080 --> 00:13:30.120 United States of America from the Dakotas and the Permian 273 00:13:31.080 --> 00:13:34.039 and that is seventy five, not to the chagrin of 274 00:13:34.080 --> 00:13:37.000 my dear friends in Midland and Odessa, but to the 275 00:13:37.039 --> 00:13:39.679 great joy of the rest of US pumping gas. And then, 276 00:13:39.720 --> 00:13:42.279 of course the third country is Mexico. But the Mexican 277 00:13:42.320 --> 00:13:45.399 prices are holding. And the question that I ask, because 278 00:13:45.399 --> 00:13:48.080 this is a critical thinking program and I do my research, 279 00:13:48.200 --> 00:13:49.120 is why is that. 280 00:13:49.120 --> 00:13:49.480 Why are the. 281 00:13:49.519 --> 00:13:53.639 Mexicans seeming to be benefiting when everybody else's market share, 282 00:13:53.679 --> 00:13:55.720 market price is declining. 283 00:13:56.039 --> 00:13:57.759 What's keeping Mexican oil up? 284 00:13:57.799 --> 00:14:01.559 Well, it's an interesting problem because Mexico is of course 285 00:14:01.559 --> 00:14:04.879 their oil industry is owned by the federal Mexican government, 286 00:14:05.000 --> 00:14:08.720 which is never an efficient model. When the government owns anything. 287 00:14:09.679 --> 00:14:12.639 The problem is that Mexico export's about thirty eight percent 288 00:14:12.759 --> 00:14:15.600 of its output to other countries and they keep the 289 00:14:15.639 --> 00:14:18.240 rest of it to make gasoline for the Mexican people, 290 00:14:18.679 --> 00:14:22.320 and there is a constraint. It's dropping below thirty eight percent. 291 00:14:22.320 --> 00:14:24.919 It's getting to be closer to thirty five percent export, 292 00:14:24.919 --> 00:14:27.840 which means their exports are declining at the very same 293 00:14:27.879 --> 00:14:31.519 time that their heavy sour grade oil is in great demand. 294 00:14:31.559 --> 00:14:34.519 That's why we buy most of the Mexican We import 295 00:14:34.559 --> 00:14:38.559 most of Mexico's out export because of the grade of oil. Well, 296 00:14:38.600 --> 00:14:41.480 other people like that too, other refineries around the world. 297 00:14:41.559 --> 00:14:43.039 You know, if they look at the price of oil 298 00:14:43.080 --> 00:14:45.879 and the cost of ship and the transport, they are 299 00:14:46.000 --> 00:14:48.360 in a bidding war for Mexican oil and the Mexicans 300 00:14:48.440 --> 00:14:51.720 right now or the beneficiaries, which is probably good for 301 00:14:51.759 --> 00:14:52.759 the Mexican treasury. 302 00:14:53.080 --> 00:14:55.759 But when you think about it. 303 00:14:55.000 --> 00:14:57.240 As the United States, we have the ability to shift 304 00:14:57.360 --> 00:15:00.639 rather rapidly from Permian to Canadian and Mexican, and we 305 00:15:00.679 --> 00:15:05.559 input about three percent of our oil for refining for specialty. 306 00:15:05.000 --> 00:15:06.440 Lubricns and things like that. 307 00:15:06.559 --> 00:15:09.240 So that's why we're not seeing a dramatic increase in 308 00:15:09.279 --> 00:15:13.320 American gasoline prices that are driven by the Mexican situation. 309 00:15:13.639 --> 00:15:15.120 Well, I think I have to take a break. Care 310 00:15:15.200 --> 00:15:17.840 my screen is a bit off, Todavid. Let's take a break. 311 00:15:17.879 --> 00:15:19.399 I'll come back and I want to talk about some 312 00:15:19.480 --> 00:15:22.960 of the economic information happening in the US. 313 00:15:23.039 --> 00:15:24.399 I'll be right Bath. Thanks. 314 00:15:29.720 --> 00:15:35.320 Introducing worldview Tube Vault. Over thirty five years of radio broadcasts, 315 00:15:35.480 --> 00:15:41.919 television programs, documentaries and ebooks, plus Worldviewpedia, our powerful search 316 00:15:41.960 --> 00:15:46.080 engine for instant worldview and Bible research. Join for as 317 00:15:46.120 --> 00:15:49.440 little as seven to ninety nine a month, and now 318 00:15:49.600 --> 00:15:53.799 Vault members get something brand new courses our very first 319 00:15:53.879 --> 00:15:57.879 courses here the Book of Revelation with Brandon House fifty 320 00:15:57.919 --> 00:16:02.120 three in depth lessons complete with overview quizzes, walking you 321 00:16:02.279 --> 00:16:05.399 verse by verse through one of the most important books 322 00:16:05.440 --> 00:16:09.720 in scripture. Getting started is simple. Go to worldviewtube dot 323 00:16:09.720 --> 00:16:14.440 com slash vault and join today. Already a member, visit 324 00:16:14.559 --> 00:16:18.039 worldvietube dot com, click the person icon in the top 325 00:16:18.120 --> 00:16:22.240 right and log in. Then hover over Vault in the 326 00:16:22.279 --> 00:16:27.559 menu and select courses. That's it. You're in. Join Worldviewtube 327 00:16:27.639 --> 00:16:31.039 Vault today at worldviewtube dot com slash vault. 328 00:16:32.600 --> 00:16:35.279 Okay, I'm back and I've got my screen adjusted. I'm 329 00:16:35.279 --> 00:16:39.120 now flying from the right the freight right control panel. 330 00:16:39.200 --> 00:16:41.799 See I have my When you see me talking and 331 00:16:41.840 --> 00:16:44.120 I tend to look up, I'm looking at the clock 332 00:16:44.240 --> 00:16:48.559 that's timing my program. This is a relatively homemade operation 333 00:16:48.720 --> 00:16:51.799 as far as my part of the contribution. But this 334 00:16:51.879 --> 00:16:54.440 is this is how this is how I roll. And 335 00:16:55.120 --> 00:16:57.080 it's nice to be able to talk into the camera 336 00:16:57.120 --> 00:16:59.159 and at the same time get feedback coming back. So 337 00:16:59.200 --> 00:17:01.600 I'm back, and anyway, I want to shift gears from 338 00:17:01.639 --> 00:17:04.880 oil because this was becoming the Eastman Petroleum Report of late. 339 00:17:05.720 --> 00:17:07.359 But I will talk about other things. 340 00:17:07.400 --> 00:17:09.559 And one big number that has come out that is 341 00:17:09.599 --> 00:17:12.640 important for the American economy, of course, is the JOLTS 342 00:17:12.799 --> 00:17:18.400 number today. And of course the JOLTS number JOLTS. JOLTS 343 00:17:18.440 --> 00:17:23.000 stands for Job Opening and Labor Turnover Survey, and this 344 00:17:23.079 --> 00:17:26.480 is a survey that the federal government Department of Labor, 345 00:17:26.920 --> 00:17:30.559 Bureau of Labor Statistics cranks out. They put out these 346 00:17:30.599 --> 00:17:34.400 public metrics and have been doing this for decades. I mean, 347 00:17:34.400 --> 00:17:38.079 this is something when you're in the dismal place of 348 00:17:38.559 --> 00:17:43.720 economic graduate school where you're studying diligently the dismal sciences. 349 00:17:43.920 --> 00:17:45.839 I think it was John Maynard Keynes called it the 350 00:17:45.839 --> 00:17:50.720 dismal science. In the dismal confines of a graduate program, 351 00:17:50.920 --> 00:17:55.039 you depend not only for your academic success, but perhaps 352 00:17:55.039 --> 00:17:58.480 for your future career success on the numbers of the 353 00:17:58.480 --> 00:18:01.319 federal government put out. And these are supposed to be 354 00:18:01.400 --> 00:18:04.640 economic benefit. And that's part of our forty trillion dollars 355 00:18:04.640 --> 00:18:07.079 in national debt and our two and a half trillion 356 00:18:07.119 --> 00:18:10.599 dollars an annual deficit. When they're borrowing and spending money, 357 00:18:10.920 --> 00:18:14.279 part of that money is to pay for these government statistics. 358 00:18:14.279 --> 00:18:16.279 And of course the Bureau of Labor Statistics has been 359 00:18:16.319 --> 00:18:18.839 around a long time. They really came out of the 360 00:18:19.279 --> 00:18:24.039 labor movement. As labor became a thing after World War Two, 361 00:18:24.079 --> 00:18:28.039 when the United States changed so very dramatically into the 362 00:18:28.039 --> 00:18:32.480 modern state that we have today, good or bad government 363 00:18:32.599 --> 00:18:35.799 statistics became a really important thing. And that's why we've 364 00:18:35.799 --> 00:18:38.359 been looking at the labor market as a component of 365 00:18:38.400 --> 00:18:42.119 the American economy for a very long time. And of course, 366 00:18:42.119 --> 00:18:45.599 we created the Federal Reserve in nineteen thirteen with the 367 00:18:45.680 --> 00:18:48.480 idea that they would be the lender of last resort. 368 00:18:48.640 --> 00:18:50.880 We needed a central bank that would shovel money in 369 00:18:50.920 --> 00:18:53.519 the back door of a failing bank, so Jimmy Stewart 370 00:18:53.559 --> 00:18:55.559 could hand the money out over the counter and everybody 371 00:18:55.559 --> 00:18:58.480 would calm down and go home and the bank crisis 372 00:18:58.519 --> 00:19:01.759 would be avoided. Was the original impetus for creating the 373 00:19:01.759 --> 00:19:06.000 Federal Reserve. Well, as time went on, monetary policy became 374 00:19:06.039 --> 00:19:09.039 a more important thing because it was quite obvious if 375 00:19:09.079 --> 00:19:11.839 you have an entity, the Federal Reserve that can create 376 00:19:11.920 --> 00:19:14.160 money out of thin air, not to the you know, 377 00:19:14.200 --> 00:19:17.480 to the amazing chagrin of mister Elon Musk who found 378 00:19:17.480 --> 00:19:18.799 the computers that actually did it. 379 00:19:19.559 --> 00:19:21.319 Get they create money out of thin air. 380 00:19:21.400 --> 00:19:24.039 It's just you just they just you know, type some 381 00:19:24.119 --> 00:19:26.559 keys and poof money shows up. And of course the 382 00:19:26.559 --> 00:19:29.000 money gets trickled through the banking system and then into 383 00:19:29.000 --> 00:19:32.480 the greater economy. And also some of that money is 384 00:19:32.599 --> 00:19:36.279 used to buy federal bonds in the bond marketplace. This 385 00:19:36.400 --> 00:19:39.480 is open market activities to keep the interest rates where 386 00:19:39.559 --> 00:19:41.920 the Federal Reserve wants them. So the Federal Reserve has 387 00:19:41.960 --> 00:19:46.519 a monetary policy component, which evolved into the dual mandate. 388 00:19:46.799 --> 00:19:50.039 We want to make sure that unemployment stays low or 389 00:19:50.519 --> 00:19:53.039 national employment stays high. We don't want a lot of 390 00:19:53.160 --> 00:19:55.880 unemployed people. And at the same time, when you do 391 00:19:55.920 --> 00:19:58.480 that by speeding up and slowing down the economy to 392 00:19:58.599 --> 00:20:04.359 keep people, you know working and the top unemployment can't 393 00:20:04.359 --> 00:20:07.079 go above five percent. If you keep it below five percent, 394 00:20:07.720 --> 00:20:10.559 we have a full employment situation even though there's four 395 00:20:10.599 --> 00:20:13.480 point two percent of Americans who are looking for work. 396 00:20:14.079 --> 00:20:18.519 That is a full that's effectively full full employment. And 397 00:20:18.559 --> 00:20:21.519 then the other half of the dual mandate is while 398 00:20:21.519 --> 00:20:23.640 you're doing that, while you're fiddling around the economy to 399 00:20:23.720 --> 00:20:27.640 keep people working, don't let inflation go above two percent. Well, 400 00:20:27.680 --> 00:20:30.960 we know that our employment numbers are low. Four point 401 00:20:31.000 --> 00:20:35.519