Thursday, May 5, 2011

It's Gotta Be The Speculators

In Defense of Greedy Oil Companies and Speculators - FoxNews.com

I found this article even with the failure of a spell check to at least be completely on point. I like bringing to light the fact that everything is affected by the actions taken in advance of an event. In other words; what we see in real time today has been carefully orchestrated by the reactions to previous events. So if you are told by your spouse that they no longer want to be with you then after a time of mourning you will replace them in your life. By that very truth the value of other members of the opposite sex goes up upon hearing the news that you will have a vacancy in that place in your life. Someone you might have only given passing conversation to in the past will no doubt be the object of affection in the new reality.

Much is the case with the value of anything else!

When supply goes down the future value goes up meaning that the cost for goods today is lower than the cost of goods tomorrow so long as the number of goods available continues to fall.

The art is in moving the goods in such a way that you can make a profit.

Why then would we be upset at the fact that someone is able to make money? Isn't that how we levy taxes?

Why would we be upset that the price of oil goes up with civil unrest in an oil producing nation? That would be like getting angry at the moon for reflecting the sun's light.

So in my opinion if the current administration would really like to reduce the cost of fuel there is something that they are in direct control over that can change the price of fuel immediately...

The taxes they levy on me for filling my tank with gas. The real speculator decided to increase the price of fuel and take a little off the top for themselves every time I go to the pump.

Something to think about I guess.

Wednesday, May 4, 2011

Subsidies or Deductions?

Repeal Oil Subsidies?

So there is news running about right now that the current administration is targeting some Oil & Gas industry specific subsidies but it would seem that the target is much more broad or that they are going to try to re-write the tax code in an effort to target a select few companies.

In this video snippet from Yahoo News you can see a clear statement that the tax deductions targeted are actually sweeping across all industries without that tax code revision and you can clearly hear the opponent having a tough time doing some simple math.

Apparently the industry pays about $100 Million per day in taxes to the US Government against profit of $200 Million per day. I think that if a company is forced to give 50% of it's profit in taxes then it is likely covering it's fair share of the load.

But that's just my opinion...