Bye bye oil nonsense

[memphis]

http://money.cnn.com/2011/05/05/markets/oil_prices/index.htm?cnn=yes&hpt=T2

[bullmoose88]

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Fun.  And I can't wait for the next middle-eastern/petro related crisis.

[Lambsbread]

Yep. Glad to see this.

[Franzl]

Yep. Glad to see this.

I suppose I'm a small minority. Someone that thinks relatively high energy prices are good....

[bullmoose88]

Yep. Glad to see this.

I suppose I'm a small minority. Someone that thinks relatively high energy prices are good....

I know what you're getting at, and ordinarily, I wouldn't disagree, but the economy needs to get on track and high energy prices don't help.

[Franzl]

Yep. Glad to see this.

I suppose I'm a small minority. Someone that thinks relatively high energy prices are good....

I know what you're getting at, and ordinarily, I wouldn't disagree, but the economy needs to get on track and high energy prices don't help.

I don't disagree. I just get rather upset at the "gas price voters". You know, as in: "When is Obama finally going to do something about that $4 gas??".

I'm not a Green by any means.....but the U.S. would be in a lot better shape if we'd had at least semi-European levels of taxation on energy for the last several decades. And not for environmental reasons at all. Purely economical ones. There's a reason high energy prices hurt us so much as they do in 2011.

I understand that high energy prices (for U.S. standards at least) are a problem for a struggling economy and for several low to middle class income families out there. Tough issue.

[Sam Spade]

Marty Feldstein of NBER basically said a couple of months ago that the high point of the latest GDP cycle was somewhere in the 3rd quarter of 2010.  As such, conventional economic theory would hold that the high point of the employment cycle would occur around 6-9 months after.

In general, the GDP movements of the past few quarters suggest a negative GDP by 4th Q this year, maybe 1st quarter next year.

Basically, loose fiscal policy by the Fed has basically been causing major input cost ramps in the past 9 months.  Separate from the other major worldwide issues (and there are many) that will eventually take down the economy, as wages are stagnant and there are major deflationary pressures.  This ties the Fed in a box, naturally, as continued loose fiscal policy will cause even input cost increases, whereas a tightening of fiscal policy will let the deflationary pressures take control.

Don't think that oil won't rebound of course - these things often take a while to sort out.

[Cincinnatus]

http://money.cnn.com/2011/05/11/news/economy/oil_tax_hearing/index.htm?hpt=T1

"But..but..our profits aren't big enough.  We need these tax breaks..Greed?  No, this is just capitalism at its finest."

Can someone please explain to me why we need to cut taxes for Oil companies when they are already quite profitable?  Seeking out specific industries to cut taxes for is not capitalism, it's political favoritism.  I don't see Oil as an industry needing a "jump-start" or an incentive to produce.  So what other purpose is there to cut taxes for them, then to obtain a strategic political advantage?...

[t_host1]

http://money.cnn.com/2011/05/11/news/economy/oil_tax_hearing/index.htm?hpt=T1

"But..but..our profits aren't big enough.  We need these tax breaks..Greed?  No, this is just capitalism at its finest."

Can someone please explain to me why we need to cut taxes for Oil companies when they are already quite profitable?   Seeking out specific industries to cut taxes for is not capitalism, it's political favoritism.  I don't see Oil as an industry needing a "jump-start" or an incentive to produce.  So what other purpose is there to cut taxes for them, then to obtain a strategic political advantage?...

 If one takes a minute to look and listen at the debate of tax breaks for big oil, they will realize that there are no tax breaks just for big oil. I don't remember who started this idea that oil was being subsidized, it does not exist no more than for anyone deducting expenses before paying taxes on their earn income. That's why everytime an investigation into energy always ends with no comment or explanation from government.
 exemptions; big labor, big education garner the largest tax breaks, bailouts and lawless acts known to man.

[opebo]

Basically, loose fiscal policy by the Fed has basically been causing major input cost ramps in the past 9 months.  Separate from the other major worldwide issues (and there are many) that will eventually take down the economy, as wages are stagnant and there are major deflationary pressures.  This ties the Fed in a box, naturally, as continued loose fiscal policy will cause even input cost increases, whereas a tightening of fiscal policy will let the deflationary pressures take control.

'In put cost ramps' are insignificant, SS.  You are grasping at straws to condemn loose 'fiscal' policy, when what is needed is a much looser (and more redistributive) policy.

[Torie]

Marty Feldstein of NBER basically said a couple of months ago that the high point of the latest GDP cycle was somewhere in the 3rd quarter of 2010.  As such, conventional economic theory would hold that the high point of the employment cycle would occur around 6-9 months after.

In general, the GDP movements of the past few quarters suggest a negative GDP by 4th Q this year, maybe 1st quarter next year.

Basically, loose fiscal policy by the Fed has basically been causing major input cost ramps in the past 9 months.  Separate from the other major worldwide issues (and there are many) that will eventually take down the economy, as wages are stagnant and there are major deflationary pressures.  This ties the Fed in a box, naturally, as continued loose fiscal policy will cause even input cost increases, whereas a tightening of fiscal policy will let the deflationary pressures take control.

Don't think that oil won't rebound of course - these things often take a while to sort out.

Ah, but the chart below is a beautiful thing. And the crop land goes to auction on June 23 (beat the collapse of the ethanol heist baby!). The remaining two thirds of the ancestral family farm is really development land, which I have decided to handle over time personally. The last chapter of the clan and this farm over the past 140 years has yet to be written. And I am going to write it! 







So, I have not been posting much as I move lot lines around, secure easements (one that I drafted to strip certain rights from one parcel to give it to another, to secure carrots and sticks over this dude who owns a parcel that we don't own, over which we need an access easement, and probably the most complex that will ever be recorded in Madison County  ), deal with a host of encroachment issues, two landlocked parcels (Iowa law is quite fascinating on that point, and I am using one to get leverage over this guy who is simply not listening to my wise advice), flood plain lines,  one "lost" parcel, and deal with about 15 government officials as I navigate through a host of farm subsidy issues (there are about six programs out there), and kiss up part of the time, and kick ass the balance. I have decided that I am the perfect person to make this all happen.

The cost of the government personnel to shovel out all of this money to farmers is probably close to the cost of the money shoveled out. It is all quite insane really. Oh, and farmers pay almost no property taxes to boot! 

[Sam Spade]

You're near the John Wayne birthplace - I never knew that.

[opebo]

...The remaining two thirds of the ancestral family farm is really development land, which I have decided to handle over time personally.

The cost of the government personnel to shovel out all of this money to farmers is probably close to the cost of the money shoveled out. It is all quite insane really.

Three points, Torie:

1) beautiful spread you have there.
2) 'development land' isn't a term which will have meaning in our lifetimes again, my fellow old fellow.
3) 'the cost of government personnel' is not insane, it is good Keynesian economics.  We need far more such staffs of people making $90,000/year doing very little.  This is the key to economic stability and growth.

[Torie]

You're near the John Wayne birthplace - I never knew that.

Actually my great grandparents retired in 1906 to what we call the stone house built out of local limstone rock in 1845 immediately adjacent to the John Wayne birthplace right on what used to be 1st Street, and was renamed "John Wayne Drive," just two blocks south of the town square. I plan to restore it.



A portrait of my great grandmother hangs in the County museum. She was known as the town "grandmother."  The stories about her go on and on, including one where she bounced one of sons  who did not want to share his room for the summer with George Washington Carver because he was a black man.  She banished Caleb to the barn for the summer. George sleep alone in Caleb's room that summer. And then my grandmother went to the college George went to, Simpson COllege, where she met my grandfather.






100th birthday photo

[Torie]

...The remaining two thirds of the ancestral family farm is really development land, which I have decided to handle over time personally.

The cost of the government personnel to shovel out all of this money to farmers is probably close to the cost of the money shoveled out. It is all quite insane really.

Three points, Torie:

1) beautiful spread you have there.

Thanks Opebo. I love the place, and will be walking it in about a month, all of it.

 
Entrance to Fair Robin Farm

[phk]

Oil is @ $101.32