Q. Can the Dems win without Florida?
A. I don't think so.
We might find out soon because I'm hearing every talking head on T.V. lately talking about Obama struggling there because of his views on appeasing the Iranian nut job and the Syrians. Lot's of Jews and red necks (no offense donkey)in Florida.
Q. If Hillary wins the popular vote, how can the dems nominate Obama anyway with the way they're still carrying on about the 2000 election?
A. Oh that's right, i forgot who we're talking about. I remember the blue republic used to do a hypocrisy piece all the time but i bet they wouldn't have mentioned this one. The dems don't recognize their own hypocrisy because when they do it they claim it's evolution!!!
Q. How many people are stupid enough to still believe that "big oil" is to blame for high gas prices?
A. All the dems in congress apparently because once again they've summoned the CEO's to sit there and be berated on TV. Of course this may be just politics and maybe they're smart enought to understand supply and demand, but i don't want to give the dems too much credit.
8 comments:
Maybe you can explain this supply and demand thing to me. If I'm making toothpast and my cost is $1.00 a tube and I sell it for $2 a tube, I make $1 a tube profit, right? Now if my costs go up to $1.50 and I raise my price to $Q2.50 I still make the same profit. But oil company profits have gone through the roof. If my costs for the toothpaste go up to $1.50 and I raise my price to $10.50 then I'm making a lot more profit. This wouldn't happen in the toothpaste industry however because of competition. There is no competition in the oil industry.
But please explain it to me.Why are their profits up so much if they are just passing on increases in their costs?
Sure Gary i'm always happy to help.
Half of Your premise is incorrect. It's not the cost of making toothpaste, it's the availablity of the toothpaste. When toothpaste becomes scarce because there's increased demand it becomes more valuable. therefore, i can charge you more for it.
The half of your premise that IS correct is not perfectly correct but hits the right tone and that is competition. We don't drill in Alaska, we don't drill off our own coast, we don't extract the oil from the shale in Colorado. Therefore we are at the mercy of the countries that have access to the resource that we need.
Now of course with India and China growing so fast they are increasing the world demand for oil from the few sources that have it. Therefore those countries increase the price of their more valuable and more rare commodity.
As to the profit margin that is a little bit more complicated, but only a little bit.
Oil trades on the futures market so if you're a savvy business man and you correctly predicted a year ago or more that oil demand would increase and therefore the price would go up, you locked up as much as you could at that price. So while the price of oil now is $130.00 per bbl, you locked in millions of barrels at 90 or 80 so your profit margins are higher.
I hope this helped.
You obviously dont brush your teeth very often.
OK, so the oil companies are making way bigger profits. Couldn't they lower the price of gas a bit and still make bigger profits than they were a few years ago? I don't get it. But then if I understood economics maybe I would have more money.
Therein lies the problem. You feel that because you dont have "more money" neither should the other guy.
The question isnt why dont oil companies lower their prices, the question is why the fuck should they.
You and the rest of your ilk are nothing more than vindictive petty whiny little bitches that throw temper tantrums over the littlest of things (boo fucking hoo gas is 4 bucks a gallon drive less or make more money for fucks sake) in order to create a boogeyman to distract from your decades long track record of failed liberal policies.
Closest thing we have to pure socialism in this country is our farm policy.... hows that working out?
Sure they could lower the prices and still make money but the point of business is to make as much as you can.
Also, don't they have to continue to buy oil. So as the price continues to go higher they have to pay higher prices to buy it.
Also, a company like exxon mobil is a very widely held stock. That means many mutual funds, IRA's,401k plans and pension plans hold that stock. If their profit goes down their stock goes down and that means millions of people lose a ton of value in their retirement accounts.
Honestly Gary you're like most Americans out there who think you don't understand because it seems on the surface to be complicated but truly it's not. It's very simple.
decreased supply and increased demand means higher prices. Demand in this country will go down slightly but in order to have a real change we need increased supply. That means we need for the oil producers to cut their own throats and produce more oil (not happening) or we need to start producing more ourselves.
wow. i can't believe it. i actually agree with the rhinoculous.
with regard to the price of gas, that is.
but he's not my candidate.
Post a Comment