Obama avoids the topic of invading EU over why gas prices are rising
Consider that “national interests” is a code word for economic interest. The US currently operates the most extensive global empire in human history. Some of us in the US may like to argue against a “new world order,” but the “new world” (the US) has been the dominant superpower in world affairs for most of the time since oil was discovered in the US in the 19th century. By 1913, with the establishment of the Federal Reserve and their motto “New World Order” (in Latin: Novus Ordo Seclorum), the US Dollar went from being a parallel private currency in 1913 to being the only circulating currency in the US by 1933, and then to being the most successful currency in the world to this day.
World War II Casualties
Source: Phil’s World War II Pages
Country | Military | Civilian | Total |
Soviet Union* | 8,668,000 | 16,900,000 | 25,568,000 |
China | 1,324,000 | 10,000,000 | 11,324,000 |
Germany | 3,250,000 | 3,810,000 | 7,060,000 |
Poland | 850,000 | 6,000,000 | 6,850,000 |
Japan | 1,506,000 | 300,000 | 1,806,000 |
Yugoslavia | 300,000 | 1,400,000 | 1,700,000 |
Rumania* | 520,000 | 465,000 | 985,000 |
France* | 340,000 | 470,000 | 810,000 |
Hungary* | 750,000 | ||
Austria | 380,000 | 145,000 | 525,000 |
Greece* | 520,000 | ||
Italy | 330,000 | 80,000 | 410,000 |
Czechoslovakia | 400,000 | ||
Great Britain | 326,000 | 62,000 | 388,000 |
USA | 295,000 | 295,000 | |
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Tags: gdp, Germany, Greece, invade, invading EU, Iraq, new world order, novus ordo seclorum, obama avoids, resources, rising gas prices, Smedley Butler, war, war racket, why gas prices, WW2
May 31, 2012 at 12:46 am |
“Could it be that gas is expensive in the US because it is in Europe?”
Of course not!
Global supply is constantly adequate (when is the last time you heard about a gas line?). As demand fluctuates, production is scaled up or down.
Europeans pay higher prices at the pump because the price includes mostly taxes. Those taxes were put in place to discourage the use of imported energy, a rather obsolete paradigm given Europe’s reliance on global trade in all sectors.
Perhaps they fear that the US navy will blockade them someday as happened to the Japanese prior to WWII.
May 31, 2012 at 1:01 am |
Thank you for your reply.
Okay, so it is your theory that all fluctuations in gasoline price are exclusively due to taxes? In California, a gallon that is $4.30 is $3.30 in Oklahoma, $2.30 in Mexico, $.80 in Saudi Arabia, $.20 in Venezuela, and $11 in the UK and all the variations are totally due to taxes?
If local gasoline prices in the US rise from $2 to $4 in a short period of time (12-18 months), then each incremental rise in price is due to fluctuating tax rates? Your theory is not well supported by the data.
As far as global supply being adequate, you may have no idea what you are talking about. In 2008, when oil prices exceeded $11 per gallon in the UK, there were trucker strikes and major interruptions to supply in many less-developed parts of the world. You may live within 5 miles of dozens of gas stations. That is simply not the case for much of the population of the world.
Furthermore, the top 1% of the wealthiest people in the world can easily afford automobiles and lots of gasoline. That is everyone who earns more than $50,000/ year, if the data I am using is right. In the US, an income of only $250,000/yr places one in the top 1%, but the US is the wealthiest nation in the world by far, right? Most of the human population living today has never been able to afford to buy a car and probably never will. India and China alone have a LOT of people.
I challenge you to name a single relevant fact that you question or that I omitted. If you have a better hypothesis than any one of mine since 2003-2004, show me. No one has convinced me that any of the basic ideas are wrong, though lots of geologists and researchers have offered additional depth to my analysis.
May 31, 2012 at 1:18 am |
“Okay, so it is your theory that all fluctuations in gasoline price are exclusively due to taxes? ”
No.
What I claimed is that the differential between US and European pricing is a result of the fact that most of the European price at the pump goes to taxes. That is simply fact.
I think that the point that you are trying to get at is that gas could be priced as an elite substance freely available only to those with vastly greater purchasing power, and severely rationed by price for the balance of users.
It seems that such a paradigm would not benefit the producers of fuel because the total dollar amount of sales would be less than what they currently obtain. Current pricing, as usual, reflects the point beyond which consumption falls off. Supply and demand dynamics never factor in to the equation.
This pricing paradigm has been prevalent since the end of the administrative pricing common in the pre-1973 era which was not based on supply and demand either.
May 31, 2012 at 1:24 am |
You are welcome to show a table of european gasoline tax rates by nation and average european gas prices by nation.
May 31, 2012 at 1:20 am |
A simpler way to express my comment is that we are chumps paying whatever the market will bear for an abundant commodity that costs a fraction of what we pay to produce.
May 31, 2012 at 1:23 am |
I understand. You identify yourself and others as chumps for paying more than the production cost of gasoline, food, electricity, housing, diamonds, gold, computers, iPhones, and so on.
May 31, 2012 at 1:31 am |
“You identify yourself and others as chumps for paying more than the production cost of gasoline, food, electricity, housing, diamonds, gold, computers, iPhones, and so on.”
No.
I recognize the value of market economies in that they motivate the development of consumer manufactures, well designed and crafted structures etc…
But a commodity that flows from under the earth?
Another way to look at the issue:
Should tap water in cities be priced at what the market will bear? Or would that be unethical?
May 31, 2012 at 5:57 am |
I am a forecaster. As such I forecast changes in the standards of ethics. You may call it unethical now for cities to charge whatever they charge for tapwater and so on, or you may call it ethical. That is not of particular interest to me.
However, you mentioned a few posts back that the US blockaded Japan prior to WW2. Whether you call that ethical, or the US bombing of Japan ethical, or any other massive political undertaking ethical or unethical, that is up to you. I am simply speaking in terms of forecasting the activities or behavior patterns of herds of human organisms (as in nations and armies and so on).
May 31, 2012 at 2:47 am |
The Atlantic Monthly reports on EU gas pricing:
Spain has the lowest priced gasoline at $7.60 per gallon; and $3.67 of that is tax. Believe it or not, that’s actually the lowest tax burden in Europe.
Italy’s gasoline is $8.79 per gallon and that includes $4.74 in taxes. (Of course with a nice bottle of Barolo, it’s easy to enjoy the countryside and forget about the cost of gasoline.)
France is looking at $9.24 with $5.40 of that being taxes.
Germany is at 9.07 with $4.88 in taxes. In Portugal you’ll pay $9.13 per gallon; $5.13 is tax and the government there has included $1.70 per gallon as a ‘value added’ tax.
In the Czech Republic, motorists pay $8.21 per gallon ($4.39 of which is tax0 which also includes a road tax. Greece and Sweden are both over $9 per gallon and more than $5 of that is tax.
Denmark is at $9.69 for gasoline with $5.41 going to taxes.
But, the highest tax burden in Western Europe is found in the Netherlands, where gas according to last year’s report, was $9.58 per gallon and nearly $6 per gallon goes to taxes.
May 31, 2012 at 6:20 am |
Ok. How about the difference between the states SC, OK, CA, HI, and AK? Is that all taxes, too?
When prices in 2008 were up, then fell, was that fall from taxes dropping? When prices returned toward or near the prior highs recently, was that from taxes, too?
I don’t know what the US spends on the occupation of Iraq. It could be $75 million per day or much more. I really do not know.
In Europe, the cost of maintaining roadways and so on may be covered at the pump. In the US, other tax revenues may be used.
I don’t really care about the tax proportion in the EU or how the EU is using those funds. I don’t even really think that the EU alone has the kind of influence that I might imply in the above article, but the point is to get people to think beyond their national borders.
Realistically, I could also argue that the reason that the EU is paying so much is that the Chinese have increased consumption of gasoline by hundreds of percent recently. I’m not arguing against “Blame Obama” or “Blame Bush,” but I am asserting that blaming local politicians in the US won’t do the US any more good than blaming local politicians in Japan did for the Japanese in the 1990s.
Incidentally, I did not plan to write about WW2 or GDP or casualties at all. My general interest was to harness the popular hysteria a bit and provide some thought-provoking claims. I am interrupting one sensationalist spin with another. My goal is not to present an airtight model, but to provoke thinking and conversation.
The reality is that I am more interested in examining with you what you mean by ethical- if you dare to explore that topic. However, I have no interest in pushing anyone in to subjects that they find terrifying or horrifying. However, I will note that I reserve the right to make fun of any reference to politics as ethical or unethical.
That to me is like talking about how much something weighs and insisting on using the unit of hours to discuss weight. The blog is called the “power of language” because language (and the language of power) ultimately is the subject of interest to me.
Talking about invading the EU was just my latest bait. I am just a humble propangandist presenting ideas like this one:
> Consider that “national interests” is a code word for economic interest.
If you can ignore any logical or factual stretches in my piece, then you will find a lot of extremely obvious principles and facts, such as that the US was by far the most victorious nation in WW2. Sometimes a bit of exaggeration is useful to introduce an idea that you then recognize as perhaps not as extreme as the author presents it, but perhaps something that you would have never recognized otherwise and somehow intriguing or relevant.
Intelligence may be quite rare in some parts of the world. If it frightens you, there are many other websites that might be less disturbing to any false presumptions that you might have, including about language.
Cheers!
J.R.
June 1, 2012 at 3:06 am |
Yes, taxes on fuel vary significantly from state to state. Look it up.
Also, what the market will bear in L.A. may be different from what the market will bear in Baton Rouge.
The operative mechanism is constant though. Price indicates the point beyond which consumption falls noticeably. This also varies with the general state of the economy.
June 1, 2012 at 3:19 am |
Did the variations of price (in the same region of the US) from $2 to $4 then back to $2 reflect a change in taxes? No.
You can argue elsewhere if that is your commitment. If you are not interested in what moves prices besides taxes, then you can focus on those subjects. Yes, price will fall when it rises enough to reduce demand, but why did it rise in the first place. I answered that in 2004, before the issue came to widespread attention. I answer it again in the article above. You may prefer to argue. That is fine if that is what you value most.
Cheers!
June 1, 2012 at 3:50 am |
Besides taxes and declining demand from high prices, what else influences price variations at various times and places? What is another obvious factor in price that would explain why a diamond in New York City would be so much more expensive than the same one in South Africa?