Friday, May 23, 2008

Atlas Shrugged? Economic/Political Ranting

Why a railroad photo? Well, you could look at it as symbolic of the rails traveling into infinity and 'into the great unknown'. Or you can think about how many of our goods travel by rail (vs. by truck, which is less efficient). How about feeling 'railroaded' by our government? Have you read Atlas Shrugged by Ayn Rand yet? I suggest you buy it soon as I am convinced that day by day we are moving towards the scenarios spelled out in that massive novel. Yes, it's brutal to get through about the first 100 pages (and John Galt's 100+ page "speech" is painful as well) but it truly seems that the overall theme of the book is coming to fruition. For example, we all know that oil prices are through the roof (try owning a diesel; I just paid $4.60/gallon). Why? As noted, supply and demand-we don't have great supplies (OPEC restrictions, Nigerian unrest, Venezuela's nutso 'leader', etc.) and demand is huge (i.e. CHINA & INDIA). Yes, the oil companies are making huge profits, but in all reality, the government is making more (through taxes) per gallon of gas than the oil companies are. Some fool from Congress wants to set up a "Reasonable Profits Board". Today the oil companies, tomorrow he'll be after YSP or trying to set your commissions! A plotline straight out of the book... By the way, if you have ANY mutual funds, YOU have most likely profited from oil profits too! My new 'cause' (now that I can get wine in GA) is to produce more oil/gas from DOMESTIC sources. ANWAR anyone?

Wednesday, May 21, 2008

Random article on Ethanol

This article spells out the misguided ethanol subsidies. One thing to note is that we have barriers to importing sugar cane--ethanol produced from sugar cane is MUCH cheaper than producing it from corn! Brazil is more or less self-sufficient due to their use of ethanol from sugar cane. Sigh.... our government at work. Unintended consequences at work!!!

While I'm at it, make sure your Presidential candidate supports the FAIR TAX!