If there’s one thing pundits love, it’s to make predictions for the new year. Is it too soon to do that now? No. So here’s my prediction: the price of oil and gas will rise.

Incredibly, given all the hard evidence, there are those who would question my prediction. This month’s cover story looks at the factors that make my forecast a reality. First and foremost is supply and demand. As the supply of oil and gas is reduced by delayed or cancelled projects, and demand rises with a recovering world economy, yes, the prices will naturally rise. We know the laws of economics are fickle. But in this case my prediction has some muscle behind it, starting with the U.S. government. It seems intent on increasing those prices. Of course we cannot leave chance out of the equation or the occasional “unintended consequence” driving the prices.

Also this month, we examine Sen. John Cornyn’s (R-Texas) opinion of what is going on the Senate and the likelihood that health care reform, cap and trade and immigration reform will occur in the near future. While the senator is optimistic about optimistic about our nation’s future, he is decidedly negative regarding the goings-on in the Senate this year.

Brian Tully examines the effectiveness of the wildly popular Cash for Clunkers program. Was President Obama’s vision of stimulating the auto industry while helping the environment a success? Or was it a one-time spike that cannot be sustained? Brian crunches the numbers for us.

Shining the spotlight on North America, we see activity in the Senate cap and trade bill, and pricy government loans to Tesla and Fisker to produce … plug-in luxury cars? No, they’re not kidding. In Latin America, we report on a new era of cooperation between those old foes, Brazil and Venezuela. Meanwhile, Hugo Chávez is cashing a $16 billon check from China to conduct exploration in the Orinoco Belt.

As 2009 quickly winds down, we are watching some strange trends. Our government is getting bigger, costing more and taking over industries. Can we trust a government that has already capitulated on war, health care and stimulus to create an energy policy that works?

Richard R. Loomis
Editor-in-Chief