Crack Squirrels and Recovery

 

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*The opinions expressed here are strictly those of the owner, and do not necessarily reflect what any of our staff may also believe. All of this is on my shoulders alone.

May 2nd, 2006. A lesson in economics. I have been frustrated with gas prices as has everyone else in this country. Yet, I understand.  There isn't a vast conspiracy against us. Oil Companies are not gouging us. True, their profits seem to be going up.  Consider this.  Lets say their markup is 7 percent, and that 7 percent never changes. If they pay 40.00 per barrel for oil, they make 2.80 per barrel.  Now, if the demand increases, and the supply does not increase, oil is at 75.00 per barrel.  They still make 7 percent, but now that 7 percent is 5.25. They have not changed their profit structure at all. It is a matter of supply and demand.  Now let's look at demand.  We are not the only country demanding oil and using it at record pace.  China is outpacing us in it's consumption, and they buy from the same sources we do.  Supply is volatile.  Prices spike when the supply gets interrupted. Venezuela provides a good portion into the supply chain, and there is unrest in that region.  The hurricanes in the south shut down refineries, which decreased supply.  Less supply, more demand, prices go up. What about gas prices spiking the minute news is oil has gone up in price?  The station owners have to replenish their supply when they run out. If they bought their last shipment at 2.57 per gallon, and priced it at 2.67 per gallon, and they know the next supply is going to COST them 2.70 per gallon, they need to raise the prices on their current supply so they can pay for the next shipment. What brought this home was talking with a customer who has dry good items they sell that cost fluctuates all over the board. If they have 10 cans of beans they paid 50 cents for sitting on the shelf, and it will cost them 80 cents per can to replace them once they are sold out, then they have to raise the price of the existing stock to make enough to pay for replacing them.

Finally, when we consider gas prices, let's not forget the amount we pay per gallon in taxes.  Are you aware, depending on what state you live in, you could be paying anywhere from 43 cents per gallon to almost 70 cents per gallon just in taxes?  Consider the economics.

May 5, 2006.  Never in my life could I be considered a conspiracy theorist. This morning, however, I read an article from Reuters news service that gave me reason to pause.  Read through this.  Twice.

Friday May 5, 5:07 AM EDT

By Swaha Pattanaik and Marcin Grajewski

BRUSSELS (Reuters) - Big oil company profits caused a stir as EU finance ministers met in Brussels on Friday after one minister said the public seemed upset about the "big winners" of the crude price surge that has sparked inflation fears.

Several ministers, however, dismissed any idea of a windfall tax on profits of the kind announced in recent days by companies such as Exxon Mobil, Shell, Total or BP -- ranging very roughly from $500 to $1,000 per second for the first quarter of 2006.

"There seems to be a sort of irritation in public opinion," Jean-Claude Juncker, prime minister and finance minister of Luxembourg, told a late-night news conference on Thursday after chairing a working dinner with ministers from the euro zone.

The ministers' primary concern is whether the oil price rise sparks inflation, after warnings by the European Central Bank that it would not hesitate to raise interest rates further to keep such a threat at bay.

"On taxation of oil company profits, as I said we are at the beginning of a process. I can simply say we started this discussion. I can say no more than that," Juncker said.

The comments, while vague, conveyed the idea that taxing the juicy gains had crossed politicians' minds, although Juncker said on Friday there had been no proposal on a windfall tax.

"We are not really there. We were asking oil companies if they would invest in substantial refining," he said.

Slovenian Finance Minister Andrej Bajuk was enthusiastic, saying: "Absolutely, yes. It would be marvelous to have a more active tax policy ... there is a lot of income. It would be wise to take a serious look."

But others were outrightly dismissive.

"We already tax oil profits," Dutch Finance Minister Gerritt Zalm told reporters. "Why would you give higher tax for companies when they make higher profits, and what would you do if it makes lower profits?"

Austrian Finance Minister Karl-Heinz Grasser said a windfall oil profit tax was "not realistic."

"I think it's not really a proposal that has a big chance of being implemented," he said. "If it is possible to have such a tax on a worldwide basis, but I really state on a worldwide basis, then I think we could discuss it."

Exxon, the world's biggest oil company, racked up profits of roughly $1,000 a second in the first quarter, while Shell earned about $785 per second, BP more than $660 and Total roughly $550 a second.

WATER OFF A DUCK'S BACK

Ministers from the 12-nation euro zone were joined for the second day of a regular Brussels gathering on economic policy by their counterparts from the other countries in the 25-country European Union.

On Thursday, euro zone ministers sounded a decidedly more upbeat note than usual on the region's economic outlook, saying recovery was on track after a lull late last year, and in spite of high oil prices and rising interest rates.

The ministers were joined for dinner on Thursday by ECB chief Jean-Claude Trichet, hours after saying in Frankfurt that he would have to raise official credit costs to avert inflation if growth in the region continued at the current pace.

The ECB left rates unchanged at 2.5 percent but Trichet's comments hardened market expectations of a rise in June.

Last year finished with a whimper as economic growth in the last three months slowed to a quarterly 0.3 percent, half of what it was in the third quarter.

Growth in Germany and Italy ground to a halt but now seem to be picking up and monthly surveys have shown business activity at five-year highs.

"The recovery is so strong that it probably won't matter much," Zalm, not prone to making dramatic statements, said of oil prices that recently topped $75 a barrel.

The International Monetary Fund last month forecast global economic growth of 4.9 percent this year, well above the average annual growth rate of the past 30 years, and raised its euro zone forecast to 2.0 from 1.8 percent.

Those forecasts and new ones the European Commission issues on Monday come despite the latest record in oil prices and a rise in world interest rates after years of dirt-cheap credit.

"So far the impact has not been significant. We've seen a big rise in oil prices and at the same time an improvement in the rate of growth," European Economic and Monetary Affairs Commissioner Joaquin Almunia said.

Almunia has until recently forecast 1.9 percent growth this year after a dip to 1.3 percent in 2005 from 2.0 in 2004.

Hard figures on gross domestic product for the first three months of this year are due on May 11.


©2005 Reuters Limited.

Now, here is my question for the day.  WHO is controlling what happens economically with oil, and other natural resources that are bought and sold throughout the world?  I'm beginning to believe it just may not be "Big Oil". Something is up.  And we're not a part of it. Someone bigger than you and me, bigger than this country, seems to have a hand in control.  Consipracy?  Yesterday, you could not convince me. Today? Let me read that report, again.

April 30,2006. It's the Kentucky Derby Festival week. Reminds me that everyone needs playtime. Yes, that even includes me. I've enjoyed working with a very loyal group of clients, and want to welcome those who are just joining me. After getting so immersed for the past 3 years in making work my life, I am getting back out and seeing the world around me again. Are you doing the same?  Stop putting your life on hold waiting.  I'm going to be traveling around the state on the weekends, doing something I haven't done for years- take pictures.  And I'll be sharing with you at

 http://im.theregisterstore.com/albums/album_1.htm.

Enjoy life!

March 4-2006. Last week I began a journey to help me understand the alcoholics and addicts around me, and how they affect my life. There are a lot of people hurting out here. So many, it is heart-wrenching. Who should we feel the most hurt for?  The addict?  The alcoholic?  Or the friends and family that stick behind them? My grieving is too early and too deep to really put a lot into words at the moment.  But I want to put my words out here in the hopes even one person may find a way to a healthy recovery, perhaps a restored marriage, maybe a recovery from an addiction. I had been very very naieve, and I did not see signs around me.  It doesn't lessen the pain any.

Join me, will you, as I share what I find.

I really got a chuckle out of this:

A Florida senior citizen bought a brand new Corvette convertible. He took off down I-75, speeding at 85 mph, enjoying the wind blowing through what little hair he had left on his head.

"This is so great, just what I thought retirement should be," he thought, as he roared down the highway. He pushed the accelerator a little more. Ah, the feeling was electrifying. Then he looked in his rear view mirror, and discovered a Florida State Patrolman right behind him, red & blue lights flashing, and siren blaring.

"I can get away from him with no problem," thought the old man, so he pushed the gas pedal all the way to the floor, and flew down the highway at 100 mph. Then 110, and 120, 130 and 140. "WOW, if I was only young again," he thought.

Then all of a sudden, a little voice inside him started talking to him, "What are you doing? You're too old for this kind of thing." So he pulled over to the side of the road, and waited for the officer to catch up with him.

The officer pulled in behind the Corvette, and calmly walked up to the driver's door. "Sir," he said, looking at his watch, "my shift ends in 20 minutes. If you can explain why you were speeding away from me, with an excuse that I've never heard before, I'll let you go."

The man looked at the officer and said, "Ten years ago, my wife ran off with a Florida State Patrolman, and I thought you were bringing her back."

"Have a good day, sir," said the officer.

 

01/22/06: This is a new year, and I finally have a moment to comment. I have had to evaluate what I have done with my business, and how it has been run.  There are those of us out in the world that battle between greed, growth and possessions, and the other side of being a "tentmaker" - focusing more on what we do with our time. Ah, the battles of the mind and soul. Perhaps circumstances dictate how we react deep within our being. These past few months have brought a new and diverse group of people along my path. One good, close friend, turns out to have a drug addiction. In the course of understanding the actions this person takes, I have spent much time out here on the internet reading. The stories I read, the people I talk to, causes my heart to cry out.  Is it any wonder, when pondering situations like this, that we take a look at our own selves and our motives?

I have recently begun adding short inspirational messages and meaningful verses from the Bible on my voicemail. One person questioned me, asking- don't you think you are being a bit "preachy"?  My answer to that, is it also holds my feet to the fire.  I don't want to be a hypocrite. Now, if I share a message that "The Lord directs my path", and I am out dealing with people in a dis-honorable way, doesn't that make me a bit of a liar? 

This year I want to reach out more. It's more than a 12 hour day 6 days a week just to make money proposition.  It's time to take time. Perhaps one day our paths may cross. Until then, have a peaceful and content journey!

 

12-22-05: Merry Christmas everyone! This is the season for giving.  As I sit here thinking about what to write, I ask myself "why haven't I given more?". How much effort does it take to take a few moments and reach out to someone? We have become so politically correct, we are afraid of alienating anyone. But if we reach out in the true spirit of Christmas, how can we offend? Political Correctness is turning our small businesses into clones. Where is the diversity?If you walk up to me and wish me a Happy Hannakuh, I welcome this exchange, even though I may not believe the same way you do. But I do believe in our right in this country to express our beliefs without being dogmatic about it. Yes, this is a holiday. What holiday is it? CHRISTmas! So I will continue to wish each and every one of you, a very Merry Christmas.

This has been a very trying year, and many changes have occurred. I have learned that you are more important than me. So I reach out and say thank you, peace be with you, and Merry Christmas!

 

I take my business very seriously. I am thankful that we have the opportunity in this country to be allowed free enterprise, where each and every one of us can decide who we want to do business with. There comes a time when we can no longer keep our values to ourselves, in order to preserve what we feel is right and just, we must make our voices heard. Right or wrong, left or right, whether you agree or not, be heard. I make no apologies if what I say here may offend you. If so, peace be with you as you move on. I believe in giving the best of ourselves no matter what walk of life. For me, this means striving for what is best for my clients, treating them fairly, giving the best value for the money. I am but one person, and those who do business with us are part of our success, without them, we are nothing. For that, I thank each and every person who continues to allow my company to take care of the needs we specialize in.

 

"Great ideas come into the world as gently as doves. Perhaps, then, if we listen attentively, we shall hear, amid the uproar of empires and nations, a faint flutter of wings, the gentle stirrings of life and hope. Some will say this hope lies in a nation; others in a man. I believe, rather, that it is awakened, revived, nourished by millions of solitary individuals whose deed and works every day negate frontiers and the crudest implications of history....Each and every man, on the foundation of his own suffering and joys, builds for all" -Albert Camus

 
"Half of the harm that is done in the world is due to people who want to feel important"- T.S.Eliot
 
"When you don't know what you want, you often end up where you don't want to be"- Bob Greene, Keep The Connection
 
"When love is your greatest weakness, you will be the strongest person in the world"-Garman Wold
 

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