Comments on: The Goods On Gas

By: Steve Stip

Steve Stip — Sat, 14 Jun 2008 19:34:25 +0000

Ilana, This is a heavy duty article. Thanks and congratulations. I just have one quibble. Deficit spending IS a huge problem. But central banking preceded and caused the need for huge social programs. Some people think that fractional reserve banking has social benefits that outweigh its dishonesty. In other words, it is OK to steal from the poor since they will invest the money intelligently and the poor will reap the benefits too. The current liquidation of malinvestments should lay that theory to rest. Plus, there are food riots in other countries. What good is an ipod, if one is starving? God knew what He was doing when He gave us the 10 Commandments. I doubt fractional reserve banking is a sophisticated exception.

By: James Paty

James Paty — Sat, 14 Jun 2008 18:00:44 +0000

Thanks for your concise and lucid explanation, which probably most people understand but cannot articulate so well. One question though: how low do we have to sink before sense returns? Please be clairvoyant.

By: hand of moscow

hand of moscow — Sat, 14 Jun 2008 08:33:05 +0000

US oil industry is still be relatively free market (by actual world standards).

Taxes are much lower than in Europe.

In Russia oil companies are subject to such high taxes that the production began to fall this years due to lack of investment. Every dollar above 50/bbl is going to budget. Licenses are distributed on the basis of corruption and clan wars.

But Russian Big Oil is composed of 5 key companies , 3 of them are still private.

In most countries oil is a total govt monopoly – from Arab countries to Norway.

Plus 40% of world oil market is one open cartel seller. [Supply and demand is still in operation.–IM]

By: Joe Allen

Joe Allen — Sat, 14 Jun 2008 03:21:43 +0000

I support coastal exploration and drilling in the Arctic National Wildlife Refuge, but we also need to get rid of corporate subsides to the Oil companies. Subsidies intentionally distort the market and inevitably result in misallocation of resources. Raising taxes on companies we are giving subsidies to makes no sense.

By: Tim Hopkins

Tim Hopkins — Sat, 14 Jun 2008 02:12:30 +0000

This was brilliant. The crash course you provided in free market economics is worth more than a thousand “investigations of price-fixing”.

By: Martin Berrow

Martin Berrow — Sat, 14 Jun 2008 01:51:49 +0000

The subject of this article brings a myriad of views on why gas is going up,and how to stop it. I believe that the Saudi Arabians are controlling everything along with other folks helping them. When the Saudi’s want a war, they get it (member Desert Storm)?
They knew Sadaam Hussein was going going to go through Kuwait like a hot knife through butter. Then, as he publicly stated several times, he was going to take Saudi. He would have done that exactly like he said, if Bush SR. didn’t step in. Just a couple of months ago, Dick Cheney took a trip to see King Abdullah. Not much media coverage at all??? No talk about his trip?? I also believe that despite the requests from many to exit Iraq, I don’t believe we will see that happening. First, the Saudis do not want the U.S. to leave, because if we do, then Iran will soak Iraq up like a sponge without firing a shot. The Saudi’s are afraid of Iran like they were of Sadaam, even more so now. The Saudi’s call the shots and control the world. If any politicans want to drill in Montana or Alaska or off California or Florida or wherever, it must go through the Saudi’s first.Don’t hold your breath on that drilling. Instead, just enjoy the useless Photos from Mars wasting billions of dollars. Martin Berrow

By: Myron Pauli

Myron Pauli — Fri, 13 Jun 2008 21:17:49 +0000

I do not know if the US really needs to pursue energy independence as much as
Americans just producing MORE energy and improving efficiency (which reduces demand) would provide a healthy free market counter to the (unstable) oil exporting countries. But burning corn for even more money than the world oil price and making more inefficiency is no answer.

But the US gets coffee and bananas overseas – that is, after all, what TRADE is about. So I am not necessarily sold on being “independent”.

Of course, the Federal-Reserve counterfeiting is raising the prices of everything overall as well.

[Sure; good points; but prohibiting exploration has nothing to do with trade.–IM]

By: Dennis

Dennis — Fri, 13 Jun 2008 20:55:52 +0000

Thank you. No one has address the high oil and falling dollar until this article. Yes, congress is spending tax dollars and the Feds are printing money like there is no tomorrow.
Congress blames the oil companies while not allowing any new oil exploration, drilling, building of refineries, and building of nuclear power plants.
In the meantime, Congress hasn’t said one word about giving taxpayers back any of the gas taxes.

By: Steve Stip

Steve Stip — Fri, 13 Jun 2008 20:02:36 +0000

“[I know this topic is close to your heart–and so it should be.–IM]”

I’m not sure that’s praise
still, here is my raise.
This is my hot topic
You’ll have to stop it!

banksters

To counterfeit,
what a silly thing to do!
It’s a crime;
you could do time;
you’d certainly be blue.
No, become a banker
if you hanker
to make money that is new.
You’ll be respected
and not rejected
by the people that you screw.
It’s theft the same
but you won’t be blamed
by those that you undo.
(And you’ll do no time for your crime sublime.)
But at the end, can your money bend
the rules that condemn you?

By: Jamie

Jamie — Fri, 13 Jun 2008 19:36:29 +0000

Considering the dollar is worth close to used toilet paper these days it would be sensible to pursue energy independence as we may not be able to purchase imports much longer. This includes drilling in the gulf, ANWR, and exploiting the shales in the mountain west. Additionally, more nuclear power plants need to be built yesterday.