scholastica8

Sarah Palin: Wall Street's Candidate

About that natural gas pipeline:

1. The Lower 48 has ample supplies of natural gas & we have prices hedged on Canadian gas for years to come. We have even more gas coming online in the Lower 48. So, we don't really need Alaskan gas. Therefore, the "earmarked" money for the Alaskan project would have been better spent expanding our gas infrastructure down here & modernizing & increasing the capacity of our electrical grid.

2. The Alaskan natural gas pipeline is a feasible project only if natural gas prices are very high. This is why it remained on the drawing board for 30 yrs.

3. It is one of the largest construction projects in history, but the contract was awarded not to a US company, but to a Canadian company.

'Index Speculators' Responsible For Commodity Prices?

I think the big question that all are missing is this:

We all tend to be comparing past commodity bubbles (oil, silver, etc) to the present situation. But, is the present the same as the past? We are looking at it from a very insular POV. From the end of WW2 to about 1970, the US was the only game in town. Between 1970-2000, we saw the rise of rival economies, but small potatoes on the whole... they had neither super populations, nor super wealth based on a commodity the world needs.

Is this really deja vu all over again, or have the super-population countries now begun to have a major sucking sound & are the growing appetites of oil-producing countries limiting the amounts of oil they wish to part with?

Someone above said that with US use declining, those supertankers would be sitting offshore waiting to unload. Is that still true? Or do they now have a girl in every port? Have we reached the point where whatever we don't use, someone else will?

Then, we come to the question of how long can the world economy bear the inflation that this will cause? The single thing that the global economy depends upon is cheap & easy transport of goods.

Some will say, that we will simply pull back to local production of foods & goods. Somewhat maybe. However, one of the reasons we went to a global economy was in order to provide resources or goods made from resources to areas that did not have those resources.

At some point, the scale must tip, but then what?

Is Crude Oil a 'Bubble' Ready to Burst?

<<<< If one wants to understand the oil "bubble" simply read the article on page A8 of yesterday's (5/29/08) Wall Street Journal titled: "Oil Exporters Are Unable to Keep Up with Demand" and check out the production data given. I was actually shocked the WSJ printed such an article, but they (unlike CNBC and most other US media) are beginning the change the normal US "peak oil denial" stance. >>>>

My greatest worry is how much can we trust our usual sources?

Who now owns WSJ, Barron's, Dow Jones? What else might he have his fingers in & how can he benefit his "other" assets? Has this person been known to play nice?