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2008-06-07 Home Front Economy

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Posted by Bobby 2008-06-07 15:25|| || Front Page|| [11132 views ] Top

#1 No way am I trading the ol' M/B land yacht in for a hybrid. She's got at least another half-million miles in her. Heck I might belch out enough emissions to warm the globe all by myself.

Posted by AzCat 2008-06-07 17:38|| 2008-06-07 17:38|| Front Page Top

#2 I'm not totally opposed to the idea of a $1 - $2 per gallon gas tax, rebated back either by lowering the payroll tax or the income tax.

Problem is, I see the Democrats looking at that gas tax money and thinking, "Oh boy! Look at all that money we can spend!"

And Repubs like Stevens and others who want their share of the earmarks and the pie.

So you'd have to show me that, dollar-for-dollar, the gas tax money is coming back to the taxpayers in cuts and rebates.

I think I'll see a pink zebra first.

Posted by Steve White">Steve White 2008-06-07 18:12|| 2008-06-07 18:12|| Front Page Top

#3 As a matter of principle I'm strictly opposed to taxes intended to bring about "social engineering" results no matter how seemingly noble the goal.

Posted by AzCat 2008-06-07 18:24|| 2008-06-07 18:24|| Front Page Top

#4 Roger that, AzCat.

Posted by eLarson 2008-06-07 18:39|| 2008-06-07 18:39|| Front Page Top

#5 Variable oil import fee that will maintain the cost of a barrel of imported oil at $100 if the market price paid falls below $100 with the proceeds remitted per capita to all social security card holders. That's all we need to do.

Posted by Nimble Spemble 2008-06-07 18:48|| 2008-06-07 18:48|| Front Page Top

#6 Rebates and taxes have to be filtered through the bureaucracy before they get back into the economy -- not an efficient proposition.

As for SUV sales: I haven't seen it in the smaller SUVs. Perhaps it's different for the vehicles that take up two parking spaces.

Posted by trailing wife">trailing wife 2008-06-07 18:52|| 2008-06-07 18:52|| Front Page Top

#7 Great plan, except the US does not control the price of oil. Any tax only adds to the world price of oil. Any reduction in consumption will be more than absorbed by growing China alone (whose car sales should exceed US sales this or next year), not to mention India and the other growing Asian economies. Other than taking the Persian Gulf oil fields and in the process funding our war effort with plenty left over, the only viable solution is electric centric transportation and that will take a generation at a minimum. Any surtax will have to go to speeding up BEV, PHEV and infrastructure adoption.

We're in this squeeze because of a complete lack of leadership and strategic planning. It didn't take a genius to figure out 6 1/2 years ago that our enemies would use their only effective weapon.

Posted by ed 2008-06-07 19:04|| 2008-06-07 19:04|| Front Page Top

#8 TW, GM is closing 4 truck plants. That means full size trucks and SUVs. They are adding shifts in their small car plants. Smaller SUVs built on car chassis get mileage similar to cars.

Posted by ed 2008-06-07 19:09|| 2008-06-07 19:09|| Front Page Top

#9 Any tax only adds to the world price of oil.

Any tax only adds to prices in addition to the world price of oil.

Too many beers today.

Posted by ed 2008-06-07 19:11|| 2008-06-07 19:11|| Front Page Top

#10 It didn't take a genius to figure out 6 1/2 years ago that our enemies would use their only effective weapon.

Hedge funds are our enemies?

Posted by AzCat 2008-06-07 19:30|| 2008-06-07 19:30|| Front Page Top

#11 More ill concieved, non thought out, lame brained ideas from the temple of taxation.

I really don't want them to pass any more laws or come up with any more ideas. Veto all of it unless of course it is simply a drill and refine plan.

Has not enough damage been done yet?

Posted by newc">newc 2008-06-07 19:51|| 2008-06-07 19:51|| Front Page Top

#12 Hedge funds are our enemies?

You give them too much credit. Oil is priced by demand at the point of use (ultimately at the pump but more directly at the refinery). Futures markets don't move the price at the point of use unless they take delivery and warehouse the stocks. This was done a few years ago with rented tankers anchored with full holds. There is no evidence of this now except for a dozen or so tankers off Iran.

Instead you will find that Persian Gulf oil exports have dropped by almost 1 million barrels/day just in the past year. Saudi Arabia alone has a production capacity of 12 or so million barrels/day but elect to produce 9 or 9.5. During the Iran-Iraq war when they wanted to cripple Iran, they produced full out and oil dropped to $8/barrel. Now they want to cripple the west and the US specifically. In a rising consumption market they can do that without resorting to an embargo or drastic cuts, but by holding production steady or slowly declining. That they are making 5X/barrel than pre Sept 11 is the icing on the cake.

Posted by ed 2008-06-07 20:08|| 2008-06-07 20:08|| Front Page Top

#13 P.S. What has kept a lid on oil prices rising even faster has been sharply increased Russian oil exports. That is now over and Russian exports are expected to decline over the years.

Posted by ed 2008-06-07 20:12|| 2008-06-07 20:12|| Front Page Top

#14 Ed - correct, at least until the Chinese move into Siberia to increase production and transport efficiency.

Posted by Shomosh Tojo7120 2008-06-07 20:32|| 2008-06-07 20:32|| Front Page Top

#15 Wait till US unemployment goes to 7.5%, demand for cheap Chinese goods goes to 0 because of internal dislocations following the Olympics and oil goes to $70 or lower per barrel. Because of inelastic demand, oil is volatile, up and down, whatever the reason. Go long SUVs now.

Posted by Nimble Spemble 2008-06-07 20:47|| 2008-06-07 20:47|| Front Page Top

#16 Except that oil exploration is going crazy, and oil has been found pretty much everywhere, as far as I can tell. And if oil prices stay high or go even higher, as presumably the Saudis and other jihadi countries would like, the oil will be exploited, non-oil burning power plants (nuclear, natural gas/gas from coal, even coal fired) will be built, and in the end the jihadi countries will lose both their economic war and their terror jihad.

Posted by trailing wife">trailing wife 2008-06-07 22:21|| 2008-06-07 22:21|| Front Page Top

23:08 Adriane
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