In the past few years (2005-2008) we have seen the price of gas skyrocket to $4+ a gallon as the oil companies were taking record profits and giving billion dollar bonuses to there executives. By itself a company making a profit is not such a strange thing. But when one looks at the economy now and see the federal government bailing out "private" industry, one must ask how long has this economic disaster been known about by those economist that work for these corporate leviathans and the federal government.
It would appear they have known for several years that this global fiat financial system was collapsing, but could do nothing to effect a better outcome. Instead the oil companies just started to take profits. The unfortunate side effect was the auto industry going out of business... without another GOV bailout that is.
It seems to me a bit strange that the oil companies would put there good friends in Detroit out of business. After all they have a semi-symbiotic relationship. The auto industry and oil companies have always been partners why would they destroy such a relationship?
The answer seems to be that these economists have known of the collapse for some time and planned the profit taking of the gas industry at the expense of thier good friends in the auto industry. The auto industry is too big to fail due to the amount of Americans it employs and so they would be able to get a bailout.
If one makes the argument that the car companies went out of business due to they were making gas guzzling SUVs. I have to point out we were preparing for war with Iraq since the Clinton administration (1998 via a Team B report. Team B was founded in the 70s and included such 'luminaries' as Daniel Pearl, Donald Rumsfeld, Paul Wolfowitz and several others.)
This war prep was going to have to include making some heavy vehicles to wage war in, and a small car factory would be hard to retool into a Hummer factory. So they were only making these vehicles to assure Gov. contracts for war vehicles.
So will the bailout happen? Yes.
But I do not believe it matter very much. I see the above as an indicator of the state of the American economy. After all I don't see these corporations purposefully burning down the house they live in unless it is a last resort.
So do the oil companies, and large corporations, see the end of American economic strength? Are they just doing what they can to amass wealth before it is all worth less... or nothing? Are we going the way of Mexico?
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- Globalization: It Aint Like What Your Daddy Told Ya
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- What is Real Magic?
- Time and the Control of Time
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NKP, Breeze Denotsko
NKP, Breeze Denotsko
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Monday, January 5, 2009
Gas Prices Were An Economic Indicator
Labels:
auto industry,
bailout,
detroit,
federal reserve,
gas prices,
Government,
oil companies
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3 comments:
The HUMMER was originally the Humvee (High Mobility Multi Purpose vehicle) built for the military to replace the venerable Jeep. It did not become a civilian vehicle until movie star and now Governor of California Arnold Swartzenegger fell in love with the Humvee and had one especially made for him. This one of a kind register able vehicle ignited the public’s imagination. Everybody wanted to become the “Terminator” and a demand developed for the SUV. GM seeing a market introduced the HUMMER to the civilian market and until Gas Prices headed for the stratosphere it served a booming market.
The problem with your argument is you have it backwards. The military Hummer was in production long before it’s civilian version. I believe this negates the basic thesis of your argument.
The rise in oil prices was caused by a speculative bubble. Speculators made a killing as the price rose to 150 dollars a barrel and then took it in the shorts when it plunged to 30 dollars today. This is not unlike the housing bubble, the Internet bubble, or going back in history The Tulip bubble 200 years ago.
The entire 'argument,' as folks like you would phrase it, stands without that paragraph. In fact that part was added simply as an afterthought to flesh it out.
It still is true that large car manufactures are better equip to make say an armored vehicle or tank than a small car factory.
I fail to see how you, my friend, fail to see the simple fact that we Americans are a heard of cattle and not freethinkers as a generalization. And the reason for the American people buying big cars is we were told to.
Further the more I get to know how you think the more I come to see you are a sheep and not a shepherd. Beyond this you cant even see the shepherd motivations from your grazing.
I don't even see you using your platform of the internet to anything but sarcastic views of the past. Try and build something instead of burning down the past.
Polls from the 1950s until today show Americans prefer larger cars. This is the part of the American psyche that “Bigger is better”. The fact is U, S; car makers are forced to build small cars to offset the poor gas mileage of the SUVs and other gas-guzzlers that the public want’s to buy. The must meet government mandated CAFÉ standards. They have a problem selling these small more fuel-efficient cars because car buyers go for the bigger vehicles. A new proposal has been made to drastically raise the tax on gasoline to force the public into the smaller, cheaper to run, cars.
This is not “FREEDOM”. Any Government that can mandate the cars you buy or how much water your toilet flushes has far too much power.
Breeze, remember, “Those who fail to learn the mistakes of history is doomed to repeat them.” I am not living in the past. I am using the lessons learned by our forefathers to analyze the possible future. Is it not possible to argue an issue without resorting to personal attacks? I guess not.
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