Howdy Harry,
Seems that the price of bread is not a component of today's economic models
considering the size of the public school meals for free program that now
even extend to the summer when school is out.
The price of gasoline is keyed to the price of crude which is a commodity
traded on the open market. The value of the US dollar determines the price
of a gallon of gasoline in the USA. The dollar dropped a 1/3 of it's value
and gas rose a 1/3.
Of much more concern is Kuwait is making noise about not accepting US
dollars in payment for oil. The US dollar is the coin of the realm.. take
that recognition away and the US dollar gets treated like the Mex peso.
Warren Buffett's organization leads the rush to dump their dollars in favor
of a basket of Euro keyed currencies.
It's really not a matter of "if" but when the dollar is dumped. A similar
event to what happened to the Mex peso in 1973 is on the horizon. US banks
work on a 20% profit margin in today's world. Big oil works on a 8% margin.
.Big oil is NOT Exxon-Mobil because they only represent 3 % of crude
production. Big Oil is now Russia. Every large nation producer from Saudi to
Mexico has a declining production and .. political problems. Russia loves to
fish in troubled waters.. and they keep telling us that Russia is gone..hide
and watch.
All of which is a way of saying we can toss our economic textbooks away.
There is a new model and it is being composed on the fly.
Bush is trying to finance the war with smoke and mirrors like LBJ's Vietnam
war.. didn't work then as year 1973 caught up with us .. wont work this
time.. unless.. that is the plan.... us peons can only watch.
Richard
- Re: [Vo]:Giffen's Paradox/ was VIDEO LINK... R.C.Macaulay
-
