Thursday, December 08, 2005
Big Oil
I hate this topic because most Americans, living in the world center of capitalism, mess up on it all the time. Here are some fun facts to recall:
1) Over the past 25 years the Oil companies in the U.S. have paid over 2.2 trillion dollars in taxes and that, my friends, is 3 times what they made in profits during the same time frame. Want to be mad about the price of oil? Be mad about how much tax the government puts on it!
2) Check out the financial statements for "big oil" and take a look at how much profit is made for ever dollar in sales. It not usually more than 10 cents on the dollar; that is pretty modest considering McDonald's fast food does about 14 cents and, my old company, Citibank was above 25 cents in profit for every dollar in sales.
3) My favorite, often heard on the news, "I know it is gouging because the price is different here versus the place down the street." Oil is a commodity and the price is very dependent on how you buy it! So usually, the discount places buy in the spot market where they Waite for a down turn in the price and then catch as much as they can. Unfortunately that doesn't work when the price is rising consistently. Bigger places own their own supplies and can try to smooth things out. Then there are the folks buying futures to try and even out the price. Are there individuals who try to take advantage? Sure. Is it evil and systematic? Forget about it. It is called a market economy and it usually is very good at correcting itself.
Valuable commodities, like Oil and Gold, shift greatly depending on uncertainty. Every market is driven up when the future is not clear or the status quo is challenged. Commodities such as Oil, Gold, Silver, Chrome all have this trait.
Lastly, the Congressional Research Service (CRS) studied the last time we had "windfall taxes" and found that the 1980s windfall profits tax depressed the domestic production and extraction industry and furthered our dependence on foreign sources of oil.
1) Over the past 25 years the Oil companies in the U.S. have paid over 2.2 trillion dollars in taxes and that, my friends, is 3 times what they made in profits during the same time frame. Want to be mad about the price of oil? Be mad about how much tax the government puts on it!
2) Check out the financial statements for "big oil" and take a look at how much profit is made for ever dollar in sales. It not usually more than 10 cents on the dollar; that is pretty modest considering McDonald's fast food does about 14 cents and, my old company, Citibank was above 25 cents in profit for every dollar in sales.
3) My favorite, often heard on the news, "I know it is gouging because the price is different here versus the place down the street." Oil is a commodity and the price is very dependent on how you buy it! So usually, the discount places buy in the spot market where they Waite for a down turn in the price and then catch as much as they can. Unfortunately that doesn't work when the price is rising consistently. Bigger places own their own supplies and can try to smooth things out. Then there are the folks buying futures to try and even out the price. Are there individuals who try to take advantage? Sure. Is it evil and systematic? Forget about it. It is called a market economy and it usually is very good at correcting itself.
Valuable commodities, like Oil and Gold, shift greatly depending on uncertainty. Every market is driven up when the future is not clear or the status quo is challenged. Commodities such as Oil, Gold, Silver, Chrome all have this trait.
Lastly, the Congressional Research Service (CRS) studied the last time we had "windfall taxes" and found that the 1980s windfall profits tax depressed the domestic production and extraction industry and furthered our dependence on foreign sources of oil.
Sunday, December 04, 2005
A Special Place in Hell
If you want a practical reason to fight on in Iraq, to me, this as good as any:
The Iraqi army said on Thursday it had seized a number of booby-trapped children's dolls, accusing insurgents of using the explosive-filled toys to target children.
The dolls were found in a car, each one containing a grenade or other explosive, said an army statement.
The government said that two men driving the car had been arrested in the western Baghdad district of Abu Ghraib.
"This is the same type of doll as that handed out on several occasions by US soldiers to children," said government spokesperson Leith Kubba.
It was not immediately clear when the find was made or the suspects arrested.
There is a special place in hell for people who would do this (and I hope the Marines catch up with them and send them there)
The Iraqi army said on Thursday it had seized a number of booby-trapped children's dolls, accusing insurgents of using the explosive-filled toys to target children.
The dolls were found in a car, each one containing a grenade or other explosive, said an army statement.
The government said that two men driving the car had been arrested in the western Baghdad district of Abu Ghraib.
"This is the same type of doll as that handed out on several occasions by US soldiers to children," said government spokesperson Leith Kubba.
It was not immediately clear when the find was made or the suspects arrested.
There is a special place in hell for people who would do this (and I hope the Marines catch up with them and send them there)
In Case You Missed The POINT
I follow several blogs. One is called "Iraq the model" and is reporting via a blog by a fellow living in Iraq. Here is a small snippet:
Election violence and violations of campaigning rules are still happening; a couple of days ago AllawiÂs list lost their candidate in Amara/Maysan in an assassination
In case you missed the point, people in Iraq are losing their lives just for running in the upcoming election. These people are risking everything to try and build a democracy. Could you do it? Given the history of our country, is it not our duty to stick with these people until they have a functioning democracy? Look me straight in the eye and tell me we should walk away from 26 million people yearning to be free.
Election violence and violations of campaigning rules are still happening; a couple of days ago AllawiÂs list lost their candidate in Amara/Maysan in an assassination
In case you missed the point, people in Iraq are losing their lives just for running in the upcoming election. These people are risking everything to try and build a democracy. Could you do it? Given the history of our country, is it not our duty to stick with these people until they have a functioning democracy? Look me straight in the eye and tell me we should walk away from 26 million people yearning to be free.
People Act Like Iraq Was A Good Place Before The War
People seem to forget that Iraq under Saddam, all propaganda aside, was one of the worst places to live in the entire world.
He, and the small vicious minority that made up the Baathist, killed over 250,000 of his own country men (men, women and children, technically speaking). Search any human rights database on the web and look for Iraq prior to the invasion. It is not a hard number to find. The U.S. military has documented over 300,000 bodies found in mass graves around the country. No matter who does the counting it makes Saddam and his government, illegitimate.
I am constantly amazed to see people, supposedly education and thoughtful, who act like things are worse in Iraq since we got there. The only people it is worse for is the Baathist. The real problem is that people are afraid that as long as Saddam is alive, the Baathist might return. In the scenario it best to keep your mouth shut about anything good happening.
Uggh!
He, and the small vicious minority that made up the Baathist, killed over 250,000 of his own country men (men, women and children, technically speaking). Search any human rights database on the web and look for Iraq prior to the invasion. It is not a hard number to find. The U.S. military has documented over 300,000 bodies found in mass graves around the country. No matter who does the counting it makes Saddam and his government, illegitimate.
I am constantly amazed to see people, supposedly education and thoughtful, who act like things are worse in Iraq since we got there. The only people it is worse for is the Baathist. The real problem is that people are afraid that as long as Saddam is alive, the Baathist might return. In the scenario it best to keep your mouth shut about anything good happening.
Uggh!
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