Thursday, May 03, 2007
Today gas prices jumped to $3.18 for regular unleaded in St. Louis, up twenty cents after jumping ten cents on Monday. The reason given for this increase is the standard bullshit answer of tensions in Iran and the summer driving season is nearing.
The reality is this market is not like other markets. It’s exactly the same market principles which charge $8 for a beer at a sporting event. Supply doesn’t really matter unless there is a shortage; right now there is no shortage but still prices continue to climb.
The oil companies can charge whatever they want for gasoline, just like the stadium which charges $8 for a beer or $5 for a hot dog. There is no place for a fan to go and get another hot dog or beer so he is stuck with the price, just like there is no other place for the driver to go get cheaper gas prices. The oil companies are all in collusion just like all of the concession stands are in collusion. The only reason for $3 per gallon gas prices is the oil companies want to make more money. PERIOD!
Because of the oil companies greed we are in the midst to using our corn as a substitute for gasoline which has driven the price of corn through the roof. Corn is a staple in our food chain. A lot is dependent on it, from feeding our cattle to sweetening our food. This price surge in corn is affecting the price of our food: chicken is up 27%, pork is up 25% and beef is up 15% over last years prices. These numbers are expected to double by the beginning of next year. Meanwhile, the oil companies are eclipsing their profit margins from last year by double digits percentages.
Instead of using our corn for gasoline and plunging our food markets into chaos why don’t we just regulate the oil industry? Put a cap on them. If the oil companies don’t like it then we should take the profitability out of that market like Chavez did in Venezuela. If you remove the profit and taxes from gas prices, it would only cost about $1 per gallon or less.
The Bush Administration’s plan to combat these prices is to open up protected land for drilling. How is this going to cheapen the price of gas? It won’t. Instead the oil companies will now have even more oil to sell at whatever price they want because there is no regulation on this market. How about a plan to move to an alternative fuel sources? How about a plan to break the oil cartel? How about a plan to regulate the price of gasoline like we do with electricity? How about at least forcing them to build more refineries which will is a better solution than more drilling?
The oil companies don’t want to build more refineries because that definitely would drive the price of gas down. There is no supply shortage but we do have a bottle neck within the refining process. With the technology advances we have today, if they would build even one new refinery it would be better for the environment and produce almost as much gasoline as two of the older refineries. But this would translate to cheaper gasoline prices at the pump which is NOT what the oil companies want.
The Bush Administration is weak on oil policies because the entire Administration is made up of oil executives. Condi Rice was serving on the board at Chevron before she caught Bush’s eye. In fact, they named a tanker after her. The there is first term Commerce Secretary Don Evans who is a big gas and oil buddy. Lawrence Lindsay the former chief economic advisor is from the Enron Advisory Board. James Baker was formerly with the Carlyle Group which represents the oil companies. Bush loves the oil people so much we’ve even seen him walking hand in hand with the Saudi dictator or whatever they call him. When you earn the richest profits on the planet you can buy anything or anybody you want. It is clear this Administration is bought and paid for by oil.
Also the Republican debate was tonight but not one question was asked during either debate if any candidate has any plan to curtail these oil companies which are doing so much harm to our economy. The fact is no candidate will challenge these oil companies because they give so much money to every candidate either directly or indirectly. We all know corporate America controls our government, and there has never been a more blatant example than what is happening to our gasoline prices.
I remember the investigation last year when Congress called certain oil executives to testify. They were trying to find evidence of the oil companies gouging the American people. Just look at the profits, you dumb asses! Talk about bullshit – that entire circus was full of the purest bullshit I’ve ever seen. In the end, nothing was done and I didn’t expect anything to be done either. I wish they would have had a camera in the back to show the oil executives handing the Congress suitcases filled with money and laughing their asses off.
Our government now encourages monopolies. They do nothing when large companies within a market merge leaving no competition or limited competition. There was a time when corporate influence was not as great because monopolies were broken up and NOT created. Today, it’s obvious the pro-corporate mantra within our government; they don’t even try to hide it anymore.
There is no relief in sight to these outrageous gas prices because none of the potential presidential candidates will even admit there is a problem. Instead of forcing regulations on a few greedy oil companies, our government will sit idle while the prices on everything skyrocket us right into inflation. When this happens, they won’t call it inflation and if they do they’ll never admit what caused it. But you mark my works; right here on May 3, 2007. I predict inflation by 2009 to the point where the recession of 2002 will look like an economic boom.
By 2009 gas prices will probably top $5 per gallon and the oil companies will have another banner year where their profits might reach the trillions per quarter. By 2009 milk prices will be close to $4 per gallon, certain meat prices will be almost unaffordable to all but the upper middle classes. In fact, we’ll probably see a 25% or more jump on the price of all food. All the while our wages will only climb by the standard 2% - 3%. Too bad corporate profits and the wage for a standard American cannot be linked. Maybe then something good would happen for the average working American.
The reality is this market is not like other markets. It’s exactly the same market principles which charge $8 for a beer at a sporting event. Supply doesn’t really matter unless there is a shortage; right now there is no shortage but still prices continue to climb.
The oil companies can charge whatever they want for gasoline, just like the stadium which charges $8 for a beer or $5 for a hot dog. There is no place for a fan to go and get another hot dog or beer so he is stuck with the price, just like there is no other place for the driver to go get cheaper gas prices. The oil companies are all in collusion just like all of the concession stands are in collusion. The only reason for $3 per gallon gas prices is the oil companies want to make more money. PERIOD!
Because of the oil companies greed we are in the midst to using our corn as a substitute for gasoline which has driven the price of corn through the roof. Corn is a staple in our food chain. A lot is dependent on it, from feeding our cattle to sweetening our food. This price surge in corn is affecting the price of our food: chicken is up 27%, pork is up 25% and beef is up 15% over last years prices. These numbers are expected to double by the beginning of next year. Meanwhile, the oil companies are eclipsing their profit margins from last year by double digits percentages.
Instead of using our corn for gasoline and plunging our food markets into chaos why don’t we just regulate the oil industry? Put a cap on them. If the oil companies don’t like it then we should take the profitability out of that market like Chavez did in Venezuela. If you remove the profit and taxes from gas prices, it would only cost about $1 per gallon or less.
The Bush Administration’s plan to combat these prices is to open up protected land for drilling. How is this going to cheapen the price of gas? It won’t. Instead the oil companies will now have even more oil to sell at whatever price they want because there is no regulation on this market. How about a plan to move to an alternative fuel sources? How about a plan to break the oil cartel? How about a plan to regulate the price of gasoline like we do with electricity? How about at least forcing them to build more refineries which will is a better solution than more drilling?
The oil companies don’t want to build more refineries because that definitely would drive the price of gas down. There is no supply shortage but we do have a bottle neck within the refining process. With the technology advances we have today, if they would build even one new refinery it would be better for the environment and produce almost as much gasoline as two of the older refineries. But this would translate to cheaper gasoline prices at the pump which is NOT what the oil companies want.
The Bush Administration is weak on oil policies because the entire Administration is made up of oil executives. Condi Rice was serving on the board at Chevron before she caught Bush’s eye. In fact, they named a tanker after her. The there is first term Commerce Secretary Don Evans who is a big gas and oil buddy. Lawrence Lindsay the former chief economic advisor is from the Enron Advisory Board. James Baker was formerly with the Carlyle Group which represents the oil companies. Bush loves the oil people so much we’ve even seen him walking hand in hand with the Saudi dictator or whatever they call him. When you earn the richest profits on the planet you can buy anything or anybody you want. It is clear this Administration is bought and paid for by oil.
Also the Republican debate was tonight but not one question was asked during either debate if any candidate has any plan to curtail these oil companies which are doing so much harm to our economy. The fact is no candidate will challenge these oil companies because they give so much money to every candidate either directly or indirectly. We all know corporate America controls our government, and there has never been a more blatant example than what is happening to our gasoline prices.
I remember the investigation last year when Congress called certain oil executives to testify. They were trying to find evidence of the oil companies gouging the American people. Just look at the profits, you dumb asses! Talk about bullshit – that entire circus was full of the purest bullshit I’ve ever seen. In the end, nothing was done and I didn’t expect anything to be done either. I wish they would have had a camera in the back to show the oil executives handing the Congress suitcases filled with money and laughing their asses off.
Our government now encourages monopolies. They do nothing when large companies within a market merge leaving no competition or limited competition. There was a time when corporate influence was not as great because monopolies were broken up and NOT created. Today, it’s obvious the pro-corporate mantra within our government; they don’t even try to hide it anymore.
There is no relief in sight to these outrageous gas prices because none of the potential presidential candidates will even admit there is a problem. Instead of forcing regulations on a few greedy oil companies, our government will sit idle while the prices on everything skyrocket us right into inflation. When this happens, they won’t call it inflation and if they do they’ll never admit what caused it. But you mark my works; right here on May 3, 2007. I predict inflation by 2009 to the point where the recession of 2002 will look like an economic boom.
By 2009 gas prices will probably top $5 per gallon and the oil companies will have another banner year where their profits might reach the trillions per quarter. By 2009 milk prices will be close to $4 per gallon, certain meat prices will be almost unaffordable to all but the upper middle classes. In fact, we’ll probably see a 25% or more jump on the price of all food. All the while our wages will only climb by the standard 2% - 3%. Too bad corporate profits and the wage for a standard American cannot be linked. Maybe then something good would happen for the average working American.
Labels: Politics
posted by DarthImmortal at 8:50 PM
6 Comments:
Thanks so much for commenting on my blog. I look at yours daily to see if you have a new post and I like what I read.
Your comments are so right on! On gasoline, on the Bush administration, on just about everything. I knew the gas prices would rise after the election, and they did. Big oil is in the pockets of the entire Republican party. As a Texan, a Southeast Texan, sitting right in the middle of the big refineries, I understand this so well.
Thanks for all of the good reading material!
I appreciate the kind words. I also enjoy reading your blog
I got an email that we shoul dnot buy gas on the 15th this month. It said that once before thsi was done and gas proces went down 30 cents overnight. It seemed like a good idea to me at first. But the 15ths is payday for military, gov, and many others. Plus people will buy gas on the 14th and 16th. So unless we did not buy gas for a longer period of time I dont know if it will work.
BTW~I am staying at a haunted house in July! I will give you the scoop!
Mimi,
You are right on target about that email. Do we really think one day of no gas will break companies which are worth trillions of dollars? I don’t think so.
Maybe if it was a couple of weeks or even a month we could do some damage but not one day. People will fill the tank the next day, if they even abstain at all, so no effects will ever be felt.
Thanks for your comments and welcome back.
you said $3.18??? a gallon?? dude!!!!!!!!!!!!!!! thats CHEAP..
Ive seen several places here[ california where i live]
its up to $7.50 THATS RIGHT!!!! you read it right.
seven dollars and fifty cents a gallon..
and its NOT un common for people here to drive on the averege of 100 miles round trip daily from work to home.
fortuantly i dont drive tha much., i put an average of 20 miles a day on my mountain bike.
You hit the nail right on the head with the refinery moratorium. It's scandalous that we haven't had new refinery construction taking place for nearly a whole generation. As a rule, I hate to see government involvement in anything, but in this case something needs to be done. Like you've said, oil companies don't have any incentive to keep their infrastructure maintained from a profit standpoint. Personally, I've believe they have been holding off building new refineries in an effort to win government tax breaks and economic incentives for construction (free land, easing of environmental impact laws, etc.). That would be the double screw job given to the public at large, first you take 5 to 8 years worth of a beating to the pocketbook because infrastructure can't meet current demand, and then your own tax money is used to offset construction costs. It's a shame, but we are well past the days when companies believed that they shared in the duty to be good American institutions. Most of them are in a sick rat race down the sewer, ever chasing that bottom dollar.
Post a Comment
<< Home