No End To Rising Fuel Costs
- 2
- Add a Comment
Since I last wrote about the rising fuel costs, the inevitable has happened… it’s gone up! Mr. Bush made his little visit to his good friends - the Arab nations, whom are currently in charge of most of the worlds energy supplies (am I the only one who is extremely bothered by this?) Anyway, as I’m sure you are well aware of, the talks that President Bush had with his buddies over there didn’t go too well. He asked them if they would be kind enough to increase production of crude oil and they promptly said “Nope!” - to which Mr. Bush said something to the effect of “OK, sounds great, thanks for having me over, by the way, your 198 room super-mansion is far nicer in person!”
But seriously, how much difference would it make if they had increased production? It would make very little difference at all and here’s why; China and India are growing by leaps and bounds in their own consumption of the world’s energy. The reason fuel costs are so high lately is mainly because of those two countries. And here’s the real kicker, we have no one to blame but ourselves! Well, not the average Joe per say, but rather our friends the big corporate giants who can’t stand to spend a few extra bucks out of their multi-million dollar salaries. Instead, they send our jobs overseas.
They are outsourcing a great many of our jobs to India (you know what I mean, if you ever had to call a customer service number and you end up speaking with someone whom you can hardly understand… then you have to do your best to translate your technical problem to them. Talk about your communication breakdowns!!) So, with this sudden burst of economic euphoria for India, they now have all sorts of money to run out and buy all the vehicles they can handle. Meanwhile driving up the cost of fuel AND pushing American workers out of jobs, how’s that for a double whammy?
As with China, well, where do you think 90% of our electronics come from? You guessed it! They too are enjoying a great big economic push from their pals over here in the states.
India gets our jobs and China gets our business, at the same time they are now fighting us for fuel and unlike 15-20 years ago, they are now able to put up a pretty darn good fight. Unfortunately the only chance we have that things might get better is first; things have to get worse… much worse. So grab onto to something and hold tight… it’s going to be a bumpy ride.
2 Comments
the oracle
May 26th, 2008
at 9:14am
Other than the fact that your reasoning is faulty, great article.
Look up supply and demand. If supply goes up, as in too mcuh produced for it to quickly be sold, the price goes down. Now, of course it is not this simplistic - but your reasoning about China sounds nice, until you realize that their sliver of the pie is very small.
By the way, I’m sure ‘W’ dod not go thinking he could accomplish anything - he waould have to have his dad do something about that.
As I stated once before on another person’s entry - if you have never seen the movie, ‘The Formula’ it would be a good thing to review it - not simply because it’s a great movie on its own, but when Marlon Brando says to his underling ‘You don’t get it, we ARE the Arabs!’ it is very powerful. The movie was made in 1980 but could also have been made last month. (Note that I don’t believe in the premise of ‘the formula’ itself - but the workings of big business, and big oil in particular, are spot on.
JT
May 26th, 2008
at 3:26pm
Thank you for commenting Oracle, I agree with you, I was a bit simplistic, but I wanted to try to avoid another “novel-type” blog post (as I did in regards to my medicine blog - perhaps much too long).
I would have loved to have gone into how we have a great amount of oil sitting on (or actually in) American soil up in Alaska. But we won’t touch it due to political bickering and red tape.
But again I thank you for taking the time to comment. All the best to you!