Letters to the Editor
-
leadership requires leading, not pandering
McCain and Clinton are pandering on the gas tax holiday idea, and they are insulting the intelligence of the American people. Refusing to insult the intelligence of the voters is not "elitism", it's just the opposite. You either respect the American people enough to tell tehm te truth, or you do not.
First off, the tax in question is only 18 cents, less than 5% of the price of gasoline. But the oil companies are able to sell all the gasoline they produce at the current price, and we are entering the summer driving season, when the price usually rises. So, what will happen is that the price will go down at first, by less than 18 cents, and then the price will rise to eat up the difference, and the oil companies will keep the money. Meanwhile, there's no money to repair interstate highways and bridges. Alternatively, Hillary can try to impose her windfall profits tax to get that same money back, but of course the oil companies would pass along the expense to consumers again.
-
How much did WTO for China cost us?
The only Clinton policy to be rubberstamped by Bush was WTO status for China. WTO destroyed the value of the Petrodollar, while it increased the global demand for oil. The President(s) who signed off on that are to blame. As some private economists will point out, the demand for low priced consumer goods has done nothing to improve our economy. The proliferation of financial engineering has created the various asset bubbles.
It's not going to end well, and breaking ranks with the me too economists, who have given support to the problem, (see last Friday's Credit Bulletin Watch at Prudentbear.com) isn't such a bad idea.
Peak Oil is really Peek-a-boo Oil, however. The various oil and commodity exporting nations realize it is much more in their interests to nationalize resources. (If and when China decides to nationalize it's human labor resources, things will get very difficult). Oil is not nearly as important as food, and labor. There is no point in keeping energy if your country can't utilize that energy for greater economic growth.
But playing to Economic problems is as difficult for the party out of power, like criticizing foreign policy. Bush hasn't turned the economy into a quagmire, only because the problems have taken longer to make themselves visible. The economy as the flip side of Iraq, is slowly sinking in, however.
The economy, like Iraq, confounds the Democrats, who can't run from their earlier positions. This should be the year of a third party candidate, perhaps Al Gore?
As President, if you don't run the economic engine just as fast as possible, you won't get a second chance. All of the current candidates have bills to pay, obligations to their rich donors. (Obama has taken hundreds of millions from Goldman Sachs). I think Bush realized this while he was laying the plans for one North American national entity, they get our worthless dollars, and we get their expensive oil.
That is the only bold proposal out there with a chance of succeeding.
-
Oh, Phoebe
I'm sure that's exactly how it'll work out. Yay!
Seriously, for the thousandth time this has been explained, if the price of gas drops by the amount of the Fed tax for even a day, it won't stay there. The more apt analogy is this: two gas stations on opposite corners, one has a sign saying "$3.99/gallon- 18 cents goes to rebuilding our crumbing interestate system" while the other's sign says "$3.99/gallon- 18 cents extra profit for the oil companies that the government's going to try to get back from them, maybe". Which one do you buy gas at?
As for proces at the punp, as we were approaching $4/gallon gas here in Chicago a few weeks ago, the station by my office put it off as long as they could, because of the psychological barrier of putting those 4s up there. The gaps between regular unleaded and mid-grade and premium, normally 10 cents a gallon on each side, kept shrinking to allow premium to stay under $4- eventually getting to the point that there was only 10 cents separating regular and premium. But, once they crossed that line, it seems like every station in town quickly followed, all three grades passed $4, and those 10-cent gaps came back. Now, although it hurts, we're all used to it. Although regular's dropped back into the high 3s, the next time it surges, there won't be a psychological barrier. The stations will only find it easier to swallow the 18 cents.
-
Sonofloud is correct
Obama says that the gas tax break will leave the treasury without needed funds... I guess you'll never see a tax cut from him, if that's his atitude.
He seems to think that the only effect a gas tax cut will be thaqt soccer moms save a little money running errands. It shows ho out of touch he is.
Everything, and I mean everything you touch today traveled on a truck. The clothes you wear have a component of the price that is attributable to fuel costs. The pizza you eat, the burger, the head of lettuce all have a fuel cost component.
Do you think farmers produce your food without fuel?
Your airline tickets likely have a "fuel surcharge". Many companies now require extra money to deliver gods and services.
Ecomonists gave us the "Trickle Down" theory. You remember that one don't you? Any money the rich don't want will trickle down to the great unwashed majority. The trouble with this theory is that the rich don't have any money that they don't want.
Continue to listen to Obama, and you'll see McCain in the Whitehouse, higher fuel prices and a continuing was in Iraq and possibly a new war in Iran.
-
Would you want the job?
Well, if *this* doesn't get Al Gore off the fence then Al Gore is just bound and determined to sit this election out for whatever reason. What must he be thinking about all this?
Whoever is elected will inherit a tanking economy and two very unpopular and unsuccessful wars. I think Gore has a better chance at stopping Global Warming than he (or anyone) does at cleaning up Bush's mess.