BlutoSays wrote:Your ideas are laden with so many problems. Let’s start with your second and third paragraphs.
More supply of what? Dollars?You don’t believe that there’s going to be more supply of goods and services just because you flood the market with dollars, do you? A dollar does not equal increases in quantity of an item or product because there is a process behind creating the product. If a widget requires 200 people to put it together, a higher price will not equal more people building more widgets because the problems we have now don’t stem from that. They stem from a scarcity in transportation because the government has scared energy producers with mandates and energy suppliers are reacting. They are "pulling in their horns" so to speak and cutting their losses. They’re cutting their production to avoid further risk from fixed costs (to avoid any further sunk costs). And factories and manufacturing facilities don't just ramp up and create additional manufacturing lines on a whim. That takes years of planning. Pulling airplanes out of the desert to make them airworthy (for increased capacity) takes a lot of time for reasons from financial to logistic to finding the right labor to get it done to regulatory to gaining favorable market conditions so you don't lose money doing it. These are big industries where haphazard decisions can quickly unravel a lot of things and cause massive damage and demand destruction.
“The current prices are high enough that the oil corps would still be making money if the wholesale price rises a little.”
You miss the point. The leaders of the oil companies right now are cutting back on exploration and any ancillary costs.They’re in a risk avoidance mode right now because of signals from this administration. They have a lack of trust in long-term decision making from government that will affect their bottom line. If the administration was to say tomorrow that they are reversing all former Executive Orders and other moves they had made against oil, the oil executives would say we are not changing the mode we are in. An oil executive would be wary of embarking on any new platforms or explorations, because at any time in the future, this administration could change their mind in the other direction and leave oil companies in a lurch (exploration projects go on for years with fixed and variable costs that are measured in risk vs. reward). This administration has literally spooked the oil market and all markets with poor haphazard decisions that affect producers (but are great in speeches as a soundbite), so they’re going to play it very conservative until these economic illiterates are out of office. You don’t just turn confidence on and off on a minute to minute basis with long term drilling projects. You can lose your ass by shifting sands overnight.
“If it rises a lot the Pres. can demand they sell at a loss to suck up the excess profits they have been making for the last 2 years.”
That would cause harm to shareholders. I know you think this is a good thing, but there are many investment and reinvestment vehicles (401K’s, pensions, stocks, mutual funds, retirement accounts, growth accounts) that have money on the line. So as you think you’re going to hurt the rich, you’re actually going to hurt middle America with this kind of thinking. Many many people rely on petroleum through reinvestment vehicles owning a percentage of the oil market (producing, refining, delivering).
The more I read your explanations, the more I realize you are a very short term thinker. You think things can just be done by the snap of a finger and the ramifications will be great. You have no idea of the thousands of moves taking place every day, based on these random decisions and signals sent out by Washington DC. Democrats run on feel-good policy of the moment, but the unintended consequences last long after they are spoken and instantiated. These policies are like turning an aircraft carrier one degree at a time and once you do it, some of the consequences take decades to undo.
You’re going to nix the filibuster? Just in time for Republicans to take control in 22 or 24. Are you sure you want to do that? You’re thrashing about at this point with short term solutions for the damage done.
Helicopter money is like a drug. You need more and more of it in increasing amounts to get smaller effects. The market signal is broken. We’ve been doing QE for decades and it’s caused great damage. If you want to repair it, think differently. Countries around the globe are losing confidence in us, and quickly.
Why would you be doing WWII style rationing in the U.S. when they’re building one coal fired plant in China every week? Do you work for the Chinese?
If you need a constant boogey man to defend against (climate change), your line of thinking is clouded and will cause us further problems. You are putting us at a competitive disadvantage against the rest of the world, standards of living are dropping, and people will not stand for the unilateral shoot us in the foot nonsense. This is very uninspiring in creating confidence in well thought out policy for long term solutions.
Bluto, I mean the supply of oil and food, because more would be imported. I used the word 'imported' there for all to see.
Yes, I know that corps will want to raise prices more, that was WHY I said the the Gov. needs to act to stop that from happening.
Stock prices are way to high. In terms of the old theory that corps' stock prices are related to future profits, buying shares now will lose you money. I suggest that pension plans sell now and hold cash as the market drops, then buy back in.
I have zero
doubt that the Repuds will nix the filibuster anyway in 2025 if they take total control of the Gov. They are going all in (so to speak) on their move to end democracy. They would end the filibuster to pass many laws that consolidate their hold on power, no matter what the voters do after 2024.
With all due respect, Bluto, (here, some), those coal fired power plants can be operated as night time power plants without burning coal or gas. In the daytime they are off line while solar power is used to drive heat pumps to heat and melt aluminium inside insulated large boxes. Then at night, the water is converted to steam by the heat in the boxes as the al freezes/becomes-a-solid releasing the latent heat.
And, the world needs to work together or we are doomed.
I want to try to save us. You want to listen to the band play and eat the ice cream in the freezer as the Titanic sinks. Your plan is the same as giving up and living for today.
Also, if we are doomed, then there is no "long run" for your bad unintended consequences to manifest themselves. So, decide. Are we doomed or do we try to save civilization or even humanity?
. . . I think I know your position on ACC. It is that ACC is a hoax to create a world Gov. to end America. Of course, we disagree on that. So, you think all my plans to fight ACC are stupid. You may even think I'm being paid (as part of the conspiracy) to say what I say. I'm not being paid, for the record.