March 01, 2005
Freedom Dividends in Beirut...
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A Lebanese woman waves a US flag during a celebration following Lebanese Prime Minister Omar Karameh's announcement yesterday.
Tens of Thousands of Lebanese protesters cheer the resignation of the Syrian-backed puppert government. This is NOT a scene you would witness if Saddam were still thumbing his nose at the world.The Bush Doctrine in action.
Posted by: Gary at
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Awesome website, I added this to my favorites list. You are now one of eight in my favorites list.
On the topic of fuel prices... I would like to add this observation.
1) Refining capacity decreases... that means we consume less crude oil because we can't refne what we get.
2.) Price of gasoline ( refined crude oil for us automobile drivers) goes UP initially, because the crude oil can not be refined to gasoline.
3.) Because we can not refine the crude oil, our consumption of that raw product decreases.
4.) As the worlds largest consumer of crude oil, our decreased consumption, ( due to the lack of refining capability in our republic nation) should result in a GLUT IN THE SUPPLY OF CRUDE OIL.
5.) The resultant over-supply of crude oil should cause the price of crude oil futures to go down, since there is an abundance of it. Several OPEC nations are even talking about INCREASING their output of CRUDE OIL. That should make an even larger supply of CRUDE OIL on the marketplace and drive the pricve of crude-oil down.
6.) Even with our diminished capacity to refine the oil to gasoline, the lower price of crude oil, ( which has not happened, but it should have) should result in the refiners to purchase oil at a lower price.
7. Since the refiners pay less for their oil, what gasoline the refiners produce should cost consumers about the same, there would be less gasoline, but since the raw product price went down due to oversupply, the cost to produce also goes down, therefore, in a fair market the price to consumers should equalize and not fluctuate much.
I should note, I am a conservative. I have also noted that US energy stock prices, including oil company stocks, have increased dramatically in the past three weeks. I have always said, "If you think the oil companies are charging too much for gasoline.... buy gasoline stocks. If they are making so much money they have to share it with their shareholders"
I reiterate that advice now.
John Clayton
Posted by: John M Clayton at September 24, 2005 10:49 PM (ydK1+)
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