Howdy Jones,
Good thought, The major oil companies are an intergrated lot and function as
a power unto themselves worldwide.They are in the category of "producers in
industry". However, I will give them credit for bringing a form of sanity
into the world of economics as taught nowdays at Harvard and the London
School of E. The price of a barrel of oil is a hard dollar tangible vs a
derivative.
It helps to fathom "Big Oil" if one can accept that "no one" owns big oil.
The various corporate entities are "controlled". The controllers conceive a
posture necessary to survive. Their survival strategy is based on the notion
that money talks. It does! ask any congressman or senator.
The real problem is not the producers in industry. They are merely trying to
survive until a new economic model is found to replace the Keynesian model
used by the Rooosevelt administration in the '30's. Until a new economic
model is in place we will flounder about in the world as contexted by
Fleckinstein
http://articles.moneycentral.msn.com/Investing/ContrarianChronicles
The best gauge of inflation is the price of a bottle of Tequila at the Dime
Box saloon. When it reaches a level unsupported by the patrons, sum'tin will
happen. We won't like it.. but.. history remains the best example if not the
best teacher.
Richard
Jones wrote,
but curiously it
does seem to be about the value of the oil depletion
allowance to big oil in any one year.
Michael - I can't believe you are you giving these
crooks a break. Big Oil is operating as a criminal
enterprise ! Price fixing is illegal in the USA and
they are doing it with impunity with OPEC as their
cover stroy. And they are still getting tax breaks on
top of the gouging !!
