by Mircea » Mon 28 May 2007, 01:44:09
$this->bbcode_second_pass_quote('Denny', '')$this->bbcode_second_pass_quote('RdSnt', 'T')here are now many more city people than farmers and those in the cities will insist on getting their fuel first.
I think your arguement is based on a democratic response to the emergency. My guess is that democracy will go out the window. I think the politicians will let the cities crumble, becuase most of them will have their own emergency hideaway ready in the sticks somewhere, and they'll take themselves and their neighbors first.
That doesn't make any sense whatsoever.
All the farmers I know use diesel, not gasoline. They have tanks right there next to the barn and a little fuel truck comes out and fills it up with diesel every so often, you know, because it's like not cool to drive a big freaking combine at a speed of 12 mph about 25 miles into town to "fill 'er up."
Where exactly is the conflict between a teeny tiny small group of diesel users and a very large huge group of gasoline users?
Besides, the people who live in cities have access to mass transit and should be able to get to the venues they want to go. As things get worse, people will flood into the cities. You can buy houses where I live for $30,000 to $65,000 (2-story townhouse or 2 or 3 family house). Of course the land speculators would swoop in like vultures and buy everything up once they see that happening, but a pro-active city council can enact ordinances to make it not worth their while.
It's the people in rural and suburban areas that will "suffer" the most.
Anyway, I don't see where oil is the issue. The issue is gasoline prices. US refineries were built to handle demand for a population of 275 Million, not 300 Million.
Consider that some idiot is going to grant amnesty to an estimated 12 Million to 22 Million illegals (who were not counted as part of the 300 Million). How many drivers will that put on the road and will demand increase or decrease? Increase, which means prices will continue to increase.
Also consider that the US population will be 350 Million by 2022 (not counting the illegals about to be granted amnesty) and 400 Million by 2037. It takes 17 years to build a refinery, so if construction starts today, that would be 2024.
That should cause one to ponder the question, "What is the game plan here?"
Please, don't anyone say oil company profits. At about $4.35/gallon it will be profitable for foreign suppliers to import gasoline, cutting into oil company revenues and profits. Imported gasoline will never meet the demand, so at best it will slow price increases, but not stop them or lower prices. Over 17 years, not only will oil companies receive less revenues with lower profits, they will lose the windfall profits they made in the short term. Sure, they'll still make a profit, but the margin will be significantly less. What kind of FUBAR business plan is that?
When gasoline gets to $4.29/gallon, you just eliminated the words "discretionary spending" from the vocabulary of 1,587,934 households in Ohio. Of course, 2/3 of those households had already lost their discretionary spending power long before that. For at least some married couples, the "big night out on the town" will be she hitch-hikes her way to Wal-Mart and he meets her there on the way home from work, they do their bi-monthly grocery shopping and then go home.
So, what's the game plan here? Ease our way into a recession? What's the sense in that? Is that some kind of Republican strategy in case they lose the 2008 election? A Democrat gets elected then booted 4 years later as the economy continues to tank? A Republican elected in 2008 would get kicked out 4 years later, too, so that can't be it.
Does this have anything to do with the North American Union or the "Amero." Is that the game plan, make everyone's life miserable so they want to do the NAU thing?
If you ignore oil prices for a second and look at what's unfolding now it really makes you wonder.