Is the price of gas correllated to the tax cut?
Experience is the worst teacher. China, India, Pakistan, Eastern
Europe, Russia... all are going middle-class, and they all want cars.
And all those cars want gas.
Driving to work, I saw a guy changing the gas price signs. Regular is
up to $3.07 a gallon. So now it costs me 60 cents to drive to work. My
morning latte costs $2.50.
The housing thing was just another speculative bubble. Those things
happen. But "hard times" is an exaggeration.
They can't "withdraw money." All they can do is sell bonds.
What they were financing is Chinese imports. If they want to sell the
bonds for less than they paid for them, we do even better.
Wishful thinking?
I just keep engineering better stuff, and keep ahead of people who
can't. Patents aren't worth the trouble.
At least one european company has copied my stuff (and my company
style, and my logo) but they did it badly.
John
Hey, I did not see your posting on my normal news server, but I did
see somebodies reply,
so I found it on google, so here we go....
Price of gas 'correlated' to tax cut, no. I was saying Bush bought
voters with a tax cut, but
the voters pay him back many times because of the higher fuel prices.
Also he has the taxpayer pay for the weapons to create the tensions to
up that fuel price.
Your view of bonds is perhaps not complete, first lets look at the
foreign investments:
http://www.ustreas.gov/tic/mfh.txt
You will see the treasury securities for China and Japan getting lower
and lower. in the last few month.
So if nobody buys US debt, you will not even have enough income to pay
the INTEREST on the current outstanding
debt.
The US cannot react by increasing interest!
This puts you at the level of a third world country, and has a
snowball effect.
There is a recent interesting thread in us.politics that includes
China groups about this.
http://groups.google.com/group/us.p...36d3436e59d/8fe1bcf383e52a6a#8fe1bcf383e52a6a
As to Boeing, the Dreamliner has as marketing argument low fuel
consumption.
When oil prices drop, that argument becomes less of an issue.
By the time it finally appears on the market, Bush will be stepping
down, and I expect oil prices to drop.
Your argument that the increased consumption of China and India etc
will keep oil prices up, I do not 100% share.
What perhaps could keep prices up is if Putin starts playing the same
'create middle east tensions' game that Bush did.
And Putin has an interest in that, as an oil and natural gas exporter.
But IF Putin plays the increase tensions game, than there is a big
risk of a WW3, because of say an over-reaction by the US.
If that happens bad times for everybody.
Bush is n*ts enough to want to walk towards a scenario like that: more
tax payer funded weapons sales...
Where will it go?
Like I said recently: The price of bomb shelters will go up because of
demand.
The 'little' guy like you and me have no influence over this, we found
now:
We are not at the center of the universe.
We are not the only life form (likely).
And, recently scientist showed we have no free will.
So what can we do? Well we can enjoy the interaction with the rest of
the universe.
Que sera sera