At $4, Everybody Gets Rational

[BestTimesNow]

This is an interesting article in the Washington Post.

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By Charles Krauthammer
Friday, June 6, 2008; Page A19

So now we know: The price point is $4.
At $3 a gallon, Americans just grin and bear it, suck it up and, while complaining profusely, keep driving like crazy. At $4, it is a world transformed.
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Here’s the link to the full article:

http://www.washingtonpost.com/wp-dyn...060503434.html

[Jason M. Hendler]

I read that link, and it is foolish. Money in the hands of government is far from guarenteed to stay in the US, as they are so eager to use it to send food and aid to Africa, where it only collapses their agricultural economies and gives leverage to ruthless thug governments.

If you don't want money going overseas, then don't import energy, and allow prices in the US to rise to a point where energy companies can pursue alternatives, including harder to extract oil reserves.

[jeremy wayne wilson]

It will just bankrupt the country quicker. Im so pissed I wish we should all quit our jobs in the whole USA and show Uncle Sam who the real boss is and not give them fukkers a dime.

[BestTimesNow]

Although I hate taxes, I think the government will give subsidies to lower the cost of electric cars in the form of tax credits or rebates. Like it or not, taxes are used for social engineering. If you want to discourage buying gas, tax it and use that money to provide funding for the electric car rebates. Do we want energy independence or not?

During the oil crisis and embargo in the 70’s gas was rationed by odd and even days, everyone was aware of our dependence of foreign oil. There was a scramble of to find new oil fields, and big money was spent on starting oil shale projects. OPEC was concerned about loosing control of the oil market and increased production. Within a year or two, things were back to normal and most of the projects that were in development were canceled. We went back to our gas guzzling ways.

2008
If OPEC opens up production and drives the cost of gas down below $2.00, nobody will want an electric car and we will repeat the same mistake we made 35 years ago, by doing nothing. Since $4 appears to be the price that got everybody’s attention, I would say have a variable tax on gas, so the price at the pump is not less that $4 and use the tax money collected to lower the cost of the electric cars. Although this favors the new car buyer, the used car buyer will benefit, when many new electric cars are sold. The successful launch of the electric car will create a good used market of electric vehicles in 5 years.

This type tax is much easier to administer and should get positive results. I think the electric hybrid will revolutionize the way we live and will create a much cleaner planet.

The bureaucracy that will be created with a cap and trade carbon tax will have little or no benefits.

[kubel]

OPEC was concerned about loosing control of the oil market and increased production. Within a year or two, things were back to normal and most of the projects that were in development were canceled. We went back to our gas guzzling ways.

2008
If OPEC opens up production and drives the cost of gas down below $2.00, nobody will want an electric car.

That's assuming such high prices are artificial. But I believe true supply/demand is at work here.

[BestTimesNow]

Yes, I agree that $4 is a reflection of the current supply-demand curve. If they up the oil production, the gas prices will come down. (Granted there is a maximum production limit, I hope we learn a lesson, prior to hitting the brick wall.)

OPEC sets production limits each of the OPEC country’s production rates.

Here’s a link to a news story just released:

“The current president of the Organization of Petroleum Exporting Countries, Chakib Khelil, has said that the cartel will make no new decision on production levels until its Sept. 9 meeting in Vienna.“

http://news.yahoo.com/s/ap/20080607/...ge/oil_meeting

$2.00 gas will kill the electric car and the US will still be addicted to foreign oil.

[BestTimesNow]

The WSJ will have this story in Monday's paper.

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Top Car Dealer Says High Gas Prices
Are Good for the U.S. Auto Industry

AutoNation CEO Says Increase Will Drive Demand
For Hybrids, Electric Cars and Other Alternatives
June 9, 2008

"For once we actually have viable alternatives and exciting technology that are really game changers" in the effort to wean transportation from petroleum, says Mike Jackson, chairman and chief executive officer of AutoNation Inc. "However, if the price of petroleum goes down … it undercuts the viability of new technology."

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See WSJ for the whole article if this link doesn't work;

http://finance.yahoo.com/q/h?s=GM

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Here he is on CNBC last week. Watch the video. Great minds think alike! Ha Ha

http://www.cnbc.com/id/24874256/site...t%7C&par=yahoo