Thursday, May 15, 2008
$10/gallon gas: Would it help?
Congrees votes to toss bucket of water on raging forest fire.
To wit:
WASHINGTON (AP) — The Senate late Wednesday approved and sent to the White House legislation directing President Bush to temporarily halt oil shipments into the government's emergency reserve, hoping to lower energy prices.
Final approval came without debate after Majority Leader Harry Reid of Nevada received assurances from other senators, including Republicans, that no one would object.
Your suggestions, please, for dealing with the energy situation -- not just the gas price situation, although they're Siamese twins.
Let gasoline hit $10 a gallon -- it'll cripple the economy, and then both gubment and bidness types who have been tiptoeing around this for 35 years will come to some agreements that matter, unlike messing with the emergency oil reserve, and some conclusions.
On the horizon is the national catastrophe Brother Jimmy Carter, prophet, warned us about 30 years ago. (Tip o' the Resistol to Dan at Payne Hollow.)
--ER
To wit:
WASHINGTON (AP) — The Senate late Wednesday approved and sent to the White House legislation directing President Bush to temporarily halt oil shipments into the government's emergency reserve, hoping to lower energy prices.
Final approval came without debate after Majority Leader Harry Reid of Nevada received assurances from other senators, including Republicans, that no one would object.
Your suggestions, please, for dealing with the energy situation -- not just the gas price situation, although they're Siamese twins.
Let gasoline hit $10 a gallon -- it'll cripple the economy, and then both gubment and bidness types who have been tiptoeing around this for 35 years will come to some agreements that matter, unlike messing with the emergency oil reserve, and some conclusions.
On the horizon is the national catastrophe Brother Jimmy Carter, prophet, warned us about 30 years ago. (Tip o' the Resistol to Dan at Payne Hollow.)
--ER
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Soap Box Warning!
Rant Coming!
The expansion of the price of Gasoline may not cripple our economy. The inability to purchase the Gasoline will.
That inability comes from two source.
1. If the overall greed for profit hadn't been fed by government our average wages would have risen and the cost of gasoline as well other things would have risen as well. The pain would have been spread over time. But with the betrayal of the real free market and labor systems, the balance was screwed long ago.
2. In 1974, it was not the price of Gas that was panicking us, it was its lack of availability due to the OPEC embargo. You couldn't buy it at any price in some places.
Many places there was no gas stations open on Sunday. One out of three station would run out before the end of the day. Some, many actually, just went out of business.
Now that cripples your economy.
In addition there is still the profit motive.
Most of the marginal oil reserves in North America are owned by energy companies. These are a few hundred thousand stripper wells, tar sands, oil shale, etc. You would think that at $127 a barrel they would open them up. Not on your life guys. First they sell you the stuff they can make the highest profit on. Only when that is depleted will they go to the less profitable but still viable alternatives. Business has no reason not to make the greatest profit while they can.
At this point raising the price of gasoline will only raise the profits of the energy companies and deter people from driving which will extend the life of the cheaper oil resources and make them even more profitable.
That will happen even if the price raise is due to a tax.
No, what we need is for OPEC or someone to cut us off from our drugs so that we will go to the alternative and still profitable but more expensive sources. That takes balls and Government action.
I have a 2006 V-8 Mercury that gets an actual 26 miles to a gallon of gas on the Interstates at 75 MPH (but only 13 in town). Why, cause it uses a computerized overdrive, cruise control, and other such stuff. It is not that there are not solutions to all of this, there are hundreds. It is, that we don't want them yet. Pogo knew.
Rant Coming!
The expansion of the price of Gasoline may not cripple our economy. The inability to purchase the Gasoline will.
That inability comes from two source.
1. If the overall greed for profit hadn't been fed by government our average wages would have risen and the cost of gasoline as well other things would have risen as well. The pain would have been spread over time. But with the betrayal of the real free market and labor systems, the balance was screwed long ago.
2. In 1974, it was not the price of Gas that was panicking us, it was its lack of availability due to the OPEC embargo. You couldn't buy it at any price in some places.
Many places there was no gas stations open on Sunday. One out of three station would run out before the end of the day. Some, many actually, just went out of business.
Now that cripples your economy.
In addition there is still the profit motive.
Most of the marginal oil reserves in North America are owned by energy companies. These are a few hundred thousand stripper wells, tar sands, oil shale, etc. You would think that at $127 a barrel they would open them up. Not on your life guys. First they sell you the stuff they can make the highest profit on. Only when that is depleted will they go to the less profitable but still viable alternatives. Business has no reason not to make the greatest profit while they can.
At this point raising the price of gasoline will only raise the profits of the energy companies and deter people from driving which will extend the life of the cheaper oil resources and make them even more profitable.
That will happen even if the price raise is due to a tax.
No, what we need is for OPEC or someone to cut us off from our drugs so that we will go to the alternative and still profitable but more expensive sources. That takes balls and Government action.
I have a 2006 V-8 Mercury that gets an actual 26 miles to a gallon of gas on the Interstates at 75 MPH (but only 13 in town). Why, cause it uses a computerized overdrive, cruise control, and other such stuff. It is not that there are not solutions to all of this, there are hundreds. It is, that we don't want them yet. Pogo knew.
I think $10/gallon is a nice starting place. Enough to shock us into considering other possibilities but hopefully not so much that it collapses our or the global economy.
Ugh... gas prices are already hurting those of us that live in the 'burbs.
I know, I know, "So don't live in the 'burbs!"
Well, I'd rather not, but unfortunately the morons who run the Zoning Commission in Ann Arbor have been zero growth for years, so there's no affordable housing. Plus they do stupid NIMBYish things like limit the size of new condo buildings to 4 stories instead of say, 8 or 9. Every condo they eliminate in town is one more McMansion built on what used to be farmland out in the 'burbs.
So, while energy policy is a primary cause of all this, let's not forget our friends, the NIMBYs, who with their shortsighted city planning efforts, have made it nearly impossible to live downtown .... where all the lights are bright... :)
What about mass transit? Surely you jest. This is southeast Michigan.... you know, the place where we (used to) build all the cars.
I know, I know, "So don't live in the 'burbs!"
Well, I'd rather not, but unfortunately the morons who run the Zoning Commission in Ann Arbor have been zero growth for years, so there's no affordable housing. Plus they do stupid NIMBYish things like limit the size of new condo buildings to 4 stories instead of say, 8 or 9. Every condo they eliminate in town is one more McMansion built on what used to be farmland out in the 'burbs.
So, while energy policy is a primary cause of all this, let's not forget our friends, the NIMBYs, who with their shortsighted city planning efforts, have made it nearly impossible to live downtown .... where all the lights are bright... :)
What about mass transit? Surely you jest. This is southeast Michigan.... you know, the place where we (used to) build all the cars.
Dan, one of the reasons that oil is at $127 a barrel is that U.S. dollar has lost so much value in relationship to other currencies.
$10 a gallon here might actually help the global economy. We might start importing those French, Brazilian and Indian cars that get 60 miles per gallon and buying those Vespas and Lambrettas. But for the under class in America, it might be a call for revolution. In America, the way we are culturally and physically structured, Gasoline translates into Freedom and Food real fast like. Hungry and Trapped are reasons for drastic actions.
$10 a gallon here might actually help the global economy. We might start importing those French, Brazilian and Indian cars that get 60 miles per gallon and buying those Vespas and Lambrettas. But for the under class in America, it might be a call for revolution. In America, the way we are culturally and physically structured, Gasoline translates into Freedom and Food real fast like. Hungry and Trapped are reasons for drastic actions.
I think it's testimony to our middle-class lives that we can actually ponder $10 gas and not break down weeping, or run grab a gun.
How long could we last on the oil reserve in place now? How big a set of balls would a president have to have to look OPEC, Saudi, et al., in the eye and say Go to Hell. How big a set of balls would it take to look hard at business tax issues -- and find ways (not *a* way) to give business breaks for vehicles and fuel used in them out of demonstrated need only? Guy I know who owns a couple of businesses just told me he's selling the big pickups he has in his fleet and buying Ford Rangers. If he wasn't getting tax consideration for the big trucks and the gas they've been drinking, he might've switched before now.
How long could we last on the oil reserve in place now? How big a set of balls would a president have to have to look OPEC, Saudi, et al., in the eye and say Go to Hell. How big a set of balls would it take to look hard at business tax issues -- and find ways (not *a* way) to give business breaks for vehicles and fuel used in them out of demonstrated need only? Guy I know who owns a couple of businesses just told me he's selling the big pickups he has in his fleet and buying Ford Rangers. If he wasn't getting tax consideration for the big trucks and the gas they've been drinking, he might've switched before now.
In America, the way we are culturally and physically structured, Gasoline translates into Freedom and Food real fast like.
Yes, the way we are structured, this is true.
Yes, the way we are structured, this is true.
Another reason that oil is at $127 a barrel is because of the collapse of the housing industry. Folks who used to invest their money in real estate have shifted their portfolio to oil futures. More investors w/ a relatively stable supply of product means the price goes up.
Thank the gods for that Gas Tax Holiday!! It is such a great idea that the Michigan Legislature is pandering ... er ... pondering doing the same thing. Fortunately our MI gas tax money goes to pay for nonessentials like our school aid fund, and that's already at a deficit now, so what's a little more red ink?
Hey, do you think Red Ink is flammable? Because if it is, Michigan may be the next Saudi Frakin Arabia! :)
Thank the gods for that Gas Tax Holiday!! It is such a great idea that the Michigan Legislature is pandering ... er ... pondering doing the same thing. Fortunately our MI gas tax money goes to pay for nonessentials like our school aid fund, and that's already at a deficit now, so what's a little more red ink?
Hey, do you think Red Ink is flammable? Because if it is, Michigan may be the next Saudi Frakin Arabia! :)
Government policy as an oxymoron.
Government has been giving tax breaks to businesses to buy vans and H-1 and 2's. While Government has been using propane and smaller electric vehicles in their national parks and monuments and buying up all the Segways that can be made to use in the GSA warehouses.
Remember the Cushman three wheeled motor scooters. They could haul 3 people in an enclosed shell or used as a truck carry 600 lbs. They got 80 mpg.
Government has been giving tax breaks to businesses to buy vans and H-1 and 2's. While Government has been using propane and smaller electric vehicles in their national parks and monuments and buying up all the Segways that can be made to use in the GSA warehouses.
Remember the Cushman three wheeled motor scooters. They could haul 3 people in an enclosed shell or used as a truck carry 600 lbs. They got 80 mpg.
Another reason that oil is at $127 a barrel is because the U.S. refuses to drill for its own underground stores of oil. Gulf coast, Pacific coast, ANWR. The housing collapse? That's just a market correction, it's not a full fledged collapse. Same thing happened with tech stocks in the nineties. Ripples spread outward for 20 or so months then viola! Market corrected.
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