I was in China lecturing at several universities, gasoline is still cheaper in China then the US. Most Chinese and Indians don't own or drive cars. China and India build most of their power plants that are fuelled by coal or Nuclear power.

This philosophy doesn't explain the exponential (grotesque) profits oil companies are making quarter after quarter. This is the what's creating the drain in our economy.

A $600 rebate check won't fix sh*t. The heavily in debt US Govt. will just borrow that money from China, cut you a check, and you will run to Walmart and by some "made in China" crap. Only China and Walmart will profit. And the US will still owe the borrowed money to the Chineese, while your kids and grand kids will become indentured slaves.. And you stand around and say dahhhh.

 

One of the biggest problems is the speculators now in the crude oil market. Money has come out of the real estate market in billions and investors (hedge funds, money managers, ect) have placed this HUGE amount of money into paper oil contracts.

This has artificially run up prices and removed any sense of supply/demand into the oil market. Even OPEC has stated repeatedly that oil should be selling for no more than $60 per barral based on actually fundamentals. That's why they won't increase their output, they're afraid of a crash in prices if they do, since the price point is artificial (not tied to true demmand)

We need to flush out the speculators in order to return to true supply/demand (true use). The best way would be to threaten a sale from the Strategic Oil Reserve for something like $50 per barrel. It wouldn't take much to scare away the investors since they don't want to get stuck holding nothing but declining paper contracts.

 

and then lets all just hold hands and sing kumbaya

 

You're obviously great at sarcasm, but what's your point?

 

This has been GREAT! So much information concerning the market on oil. Thanks to all of the contributors, even those that I didn't agree with. Unfortunally, I think the one point that I came away with was that since mega dollar profits, all of the countries of the world, and global warming conditions are involved; a solution to this problem is not going to be pretty. Again, thanks for the information.

 

Quote:

Someone noted that grocery stores profit margin is 2%, because people have to eat, and questioned why doesn't big oil look at it that way. Grocery stores are distributors, not manufacturers. Your local gas station is the distributor and is making only about 2% profit. Big oil is the manufacturer, just like Pepsi or Frito-Lay, and they make much more than 2% just like big oil does. Do you want to take their profit too? Let’s just take everyone’s profits? Remember we are governed by the free enterprise system. Profits are good! Live it, love it, or leave it.

I Hate to break it to you however the oil companies here in Canada own many of the gas stations. I'm sure it's happening in the Us as well. In kelowna there isnt an independent owned gas station to be found. As a result we pay rediculous prices. The US equivalent is 4.84 for a gallon of gas. The gas companies control (fix) the price. There is no basis to increase gas prices by 40 cents a gallon (10 cents/liter) because a barrel of oil happen to increase by a dollar. Gas prices can fluctuate 40 cents a gallon within miles as you approach the Vancouver greater area. The bottom line is that the gas companies are making record profits by selling less gas for more and more money.
Soon, multinational companies will own all the farms, and control world food production as well. It's happening, and it will have a profound affect on us all.
Think about the number of baby boomers who are nearing retirement. When that work force leaves it will create a huge void. So thinking like a huge corporation, and the governments they influence how can we stop this? Indebt the population!
Issue credit cards (not real money) and charge huge interests rates, while reducing the minimum payments by half (real money) Result - the average credit card holder with carry twice the debt. Put people in homes for zero down, and with 40 year mortgages - insures they will work until they drop and never own their home. Crash the housing market! Crash the stock market. It's much easier to control the working class if they are worried where their next buck is going to come from....
The American Dream is a Lie.

 

Jaded,
They American dream is not a lie. You have simply been lied to about the American Dream. The pursuit of happiness is guaranteed by the Constitution.
Achieving it is not.

The free enterprise concept allows all sorts of opportunities for the uninformed and foolish to be taken advantage of. You don't sound like one of them, you sound "aware."

Sadly most folks go through life believing the BS presented by commercials and politics. Blissfully enjoying their lives moment to moment, check to check, they are unaware they got screwed. When they find out, they blame the system instead of themselves.

There is a saying " danger is mother nature's way of getting stupid people out of the gene pool.'' We expect, no demand, instant guaranteed success because we were born Americans. That is the lie.

My parents lived through the depression and then fought WWII for a country that hadn't given them much of anything but a promise. My dad was a poor dirt farmer who came back to become an engineer and raise a family. His generation built houses and highways, fed the world and put a man on the moon. They did so because they wanted to, they could and so they did.

That is the American dream.


roadster with a stick

 

The reality of Gas prices just add 1 more 0 to 30 cents a gallon 40 cents a gallon 50 cents = $3.00, $4.00, $5.00 bucks easy math just like every thing else in the last 40+ years has gone up in price 10x your house, car, milk, everything ! You need ! remember whem movies were 50 cents or less ! The only thing cheaper now is long distance phone-calls!

 

Huh? Martini lunch?

 

I think he means the advent of the internet, Digital voice, internet telephony, Voice-Over-Internet Protocol whatever your vernacular