One of the goals of Crazyman's Economics is to start a discussion among those people who don't read the DK or normally follow politics or business about the dangers of the markets to average Americans. Something that's on the mind of every American is the record high gas prices, crude oil prices, and record high oil company profits.
In this video, Scott gives an overview of the role of speculating in the commodities market and how has a negative impact on all consumers. Scott avoids the complex language that may confuse average folks, and gives a common-sense overview of the dangers of the commodities market.
As a background, T.E. Scott worked 32 years for Eastern Airlines as a baggage handler and lost about $400,000 of pension when EA went bankrupt under Frank Lorenzo in the early 80's. He started a company in his living room, and built that into a multi-million dollary company in west central Indiana, Scott Pet products. So looks are decieving, he's been on both sides and has spent the last four years discussing, debating and researching the information that went into the book.Crazyman's Economics
George W. Bush often says he’s a hopeful person. In yesterday’s radio address he hoped to blame Congress for high oil prices. Congress according to Bush prevents oil drilling off the coasts, oil drilling in national parks, turning shale into oil, and the building of new refineries. All of which would allow us to fully exploit our estimated 3% of world oil reserves. That would be in about ten years time and even then the effect on oil prices will be negligible. That’s because producing all 3% of our estimated world reserves would do nothing to cut our consumption of 25% of world oil production. It’s a good thing Bush is a hopeful person because he’s not very good at math.
It appears that the wool is being removed from the eyes of Congress, either by choice or by necessity. the question is if Congress will enact real reforms, or make a lot of empty gestures.
Oil traders will come under increasing scrutiny in Washington this week as two Senate committees hold hearings on whether speculators are to blame for part, or all, of oil's spectacular price rise this year.
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Acting Chairman of the Commodity Futures Trading Commission Walter Lukken will try to explain the price surge when he appears Tuesday before a joint hearing of two Senate panels - the Committee on Agriculture, Nutrition and Forestry and an Appropriations Committee subcommittee on financial services
"The Saudis are concerned that sustained high oil prices will eventually slacken the world's appetite for oil, affecting them in the long run."
That line alone from a Yahoo story today speaks volumes about how we need to ween ourselves from the need finally break from the OPEC cartel and start to look for ways to live beyond the need for oil.
I wrote in my inexpert-way about peak oil recently in a few diaries. If you haven't read them, they're here, here, and here (links in chronological order).
The story has a decidedly Arab slant, but I couldn't disagree with the basic facts of the article.
From the story:
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"There is a growing acceptance now all around that speculation is playing havoc with the markets. Even the British Energy Minister Malcom Wicks reaching Riyadh later today, now concedes that at least partially — if not fully — the speculators are to be blamed."
Yesterday, I wrote this post about peak oil, about thinking about responding to our oil running out, and about the oil and gas industries' recent moves. Obviously, the oil will inevitably run out, and when it does, what will happen to all of us or to our kids and grand-kids (oil likely won't last any later than that) will differ greatly depending on how we respond to the problem now. Whether you've noticed my posts before on this subject, or are noticing it for the first time, read on.
For cars, the most effective thing would be a "feebate": In the showroom, less-efficient models would have a corresponding fee, while the more-efficient ones would get a rebate paid for by the fees. That way when choosing what model you want you would pay attention to fuel savings over its whole life, not just the first year or two. It turns out that the automakers can actually make more money this way because they will want to get their cars from the fee zone into the rebate zone by putting in more technology. The technology has a higher profit margin than the rest of the vehicle.
Last Updated: June 9, 2008: 1:24 PM EDT
RIYADH, Saudi Arabia (AP) -- Saudi Arabia will call for a summit between oil producing countries and consumer states to discuss soaring energy prices,
Information and Culture Minister Iyad Madani said Monday.
Saudi Arabia seeks oil price curb Information Minister says current oil price is 'unwarranted' as kingdom plans meeting of producers, consumers; will cooperate with OPEC.
Goodness, this article must reflect a total change of direction since Mr. Bush was rebuffed by these same Saudis a few weeks ago. Now they want to be the good guys on the World Stage.
Only a mind as balanced and penetrating as George Monbiot could get to the heart of the matter when oil prices meet state policy. In the mess of connections between OPEC outpit, the statements of King Abdullah of Saudi Arabia, the British, US and French governments, Monbiot organizes them all into coherence.
And we can realize the threat looking back in the mirror, the caution we should take at the sign of our own anger and fear. It's not Arabs or OPEC to fear but our own irrationality.
For just over a year, I've been digging deeper and deeper into the world's energy situation and have oscillated between certainty that 90 percent of us are going to die and cautious optimism about an opportunity to improve the structure of our society.
Among the big "issues" in this political season (to the extent that we even remember those), energy, climate and food are at the top of my list.
With oil prices having grown by a factor of six since 2000 and showing no sign of let up, I will increasingly post about what's going on in an attempt to share what I've learned and direct our frustration accurately and productively.
Oil prices (and, by extension, gasoline prices) have been rocketing up over the past few years, with no end in sight. While many solutions have been proposed (including Bush's ineffective begging the Saudis to increase production), there is only one thing that will truly bring down prices hard and fast: certainty of a Democratic victory in November.
If the high price of gas has you singing the blues, you're not alone. Here's a little ditty that will have you yearning for the good ol' days, when gas was just 3 bucks a gallon!! I know the price of gas is nothing to laugh about, but it sure beats crying...
"What Goes Up (& Up & Up)"
(You can see all my parodies at myparodypage.blogspot.com)
It seems like everyone is trying to twist their brains around the problem of high gasoline and oil prices lately. Kevin's latest ruminations, involving the impending decline of the natural oil supply, are here. Mine are in this post.
BRAZIL – THAT MUCH SMARTER THAN AMERICA?
Since 1975 Brazil A+ - America F.
Why is Brazil so much smarter than America ?? The robustly intelligent who frequent KOS will be instantly curious and want to at least explore this premise.
Brazil is one of the largest Democracies in the world. It operates the same way as the United States, as a republic. Brazil’s 190 million residents now enjoy the very comfortable position of being OPEC-Free, or energy-independent. (Notice how US politicians mouth that phrase as a distant, unachievable dream ... ?) Brazilians couldn’t care less what the Saudi Sheiks do with their oil production decisions: increase drilling or decrease? Brazilians don’t care. Imported oil previously accounted for more than 70% of the country's oil needs, but Brazil became energy independent in 2006.
For the second time in two months, President Bush's efforts to "jawbone" his Saudi friends over the cost of oil fell on deaf ears. On Friday, oil surged to a record $127 after Bush's meeting with King Abdullah failed to secure a production increase beyond the meager 300,000 barrels the Saudis previously committed to on May 10th. In all, it was just the latest dismal failure for the jawbone of the Texas oilman who campaigned on his powers of persuasion when it came to OPEC.
