I CAN’T stand it!!! I’ve tried to be good, and not approach this topic….but I just can’t hold back. 😦
I have spent a little time studying at Purdue University…actually, my degree is in Business/Economics. In one of my Macroeconomic classes…a significant part of the semester focused on the Gold Standard. The United States was in process of changing the valuation of it’s currency away from the Gold Standard. How things change, my youngest son (who has a degree in Economics), and I have discussed the Gold Standard; he gave me a one sentence comment…it was “we had a one sentence discussion in class, dad, we were once on a gold standard.”
We are significantly affected by the global economy. It’s interesting how many of us understand that, but don’t understand the how and why. We were told the Gold Standard held us back and we needed to let our currency “float” against other global economies. Our stock market used to rise and fall on this country’s largest corporations business results.
Does the younger generation understand that the United States Economy is now DIVERSIFIED, by partaking in the GATT and NAFTA treaties we “open new” markets…. But if someone “spits” in Asia or Europe, our Markets rise/or falls.
During the current recession, there was discussion how government bail-out funds should be distributed. One comment was that the money should be distributed to homeowners, they could payoff their mortgages. Good idea, but this country’s inflation would have been double-digit. Instead, we loaned it to the banks, most of the money wound up in the hands of the banks underwriters ~ which are foreign banks. So we propped up other country’s economy. Our retirement accounts lost at least 45% or more. As the market currently rebounds to higher than pre-recession levels, investment accounts have only recouped half of their losses. If you watch the stock market, it is seems to be driven by the loudest nay-sayer. Take any unknown analyst with a negative comment and down goes the market, no matter how good U.S. business rebounded. The average individual investor can’t compete with the computerized program model that buys and sells on Que while the rest of us work.
In this mix are gasoline prices..which is actually where I really want to talk. Yesterday, it was reported in the local news that gas prices had hit their peak and would be receding, within 12 hours that price jumped 18 cents, to $4.17/gal. Immediately the Indiana Attorney General says they are going to look for price gouging. The President has the U.S. Attorney General looking for fraud amongst the oil companies. Does ANYONE reading this expect that ANY bureaucrat will understand what they are told? First let me explain that gas stations get a call from the regional office at 4 pm that says at 6 pm set your price to $$$. The congress has investigated the oil companies pricing in the past and has come away convinced that the pricing was correct.
Here’s what we know, in the free market if you make something that someone wants, you set the price to recoup your creating/manufacturing/processing costs plus whatever profit people will pay. Does anyone remember ENRON? Enron was a Texas Power Company, that supplied most of the power to California. California prices sky rocketed. Why? Enron, used a series of tiered subsidiaries and speculative buyers to buy and sell electric futures, profits soared, but everything was paper…..
I heard it said during our last gasoline crisis, “You know who owns most of the oil in this country? Bank of America” (or some other bank name). It seems that many of Enron’s employees began working for banks. Banks have become Oil Speculative Buyers. (Did you ever wonder how the U.S. Banks paid back all of those government loans, while the banks’ mortgages were being foreclosed on and no one was re-mortgaging?) We have Oil Producers, Oil Refiners, Oil Brokers and Oil Retailers—WHY do we need Oil Speculators? They add nothing to the product other than additional mark up.
Did you notice how gasoline prices jumped when Egypt fell, and went higher with the Libyan unrest? We don’t get ANY oil from Libya, but the SPECULATORS fear the unrest will spread to other oil rich countries. In the land of Freedom, we applaud those seeking relief from oppression, BUT, once free, like in Egypt, why is it necessary to crash their economy by blowing up oil terminals as is now being done? When speculators announce their concerns, it’s like throwing gasoline on a blazing fire.
When Egypt was “controlled”, Soha el-Nakash, a woman, was the leading National News Anchor. With Egypt obtaining its freedom, Soha has not returned to the air, after all she’s a woman in an Arab world.
LET ME BE A SPECULATOR–I don’t believe OUR concept of FREEDOM is the same as their concept of freedom. I don’t believe we in the WEST, will ever understand or grasp the longevity of the hatred of those of the EAST. Remember, those UPRISING are rebelling against DICTATORS who COOPERATE with the west. Those uprising DON’T want MORE WESTERN freedom, they want to blow up oil distribution and bring the west (infidels) to their knees.