Cut back on the use of oil or support an oil tax

The steady increase in the price of a barrel of oil has skyrocketed over the last 4 years. It is a significant drain on the American economy and a more significant drain on the entire oil importing world.

It is the most amazing tax increase across the world. Most of the nations that are the largest net oil importers are nations that are at odds in one way or another with America and many of them have nationalized oil so that it flows directly to the nation and not to private companies.

Saudi Arabia provided most of the terrorists that flew planes into American buildings on 9/11 2001. Its schools teach a hate filled exclusion type of extremist Islamic creed that is contrary to Western ways.

Russia, due to the incredible increase in the price of oil has become a powerful anti US anti/nato power expanding its power dramatically as it is becoming wealthy.

Venezuela is run by a dictator that is dramatically anti west/anti democracy/anti US.

Iran is a dramatically anti west dictatorship. etc etc. etc.

The increase in oil prices have made these nations wealthier, and more immune to any type of influence from any other nations.

Of interest a Saudi prince, a member of the Royal family just ordered the largest airbus; price equals $300 million for a raw plane without interior buildout. That is personal wealth distributed from oil riches.

This has been the most dramatic tax increase across the globe.

Demand for oil is increasing. While the US is the largest net importer of oil, the demand for oil is increasing at dramatic levels in India and China. Demand for oil will only increase and prices may well go up.

Oil imports make up the largest most volatile section of the consistent US trade deficit. Essentially as the price goes up the US trade deficit increases every month as more dollars go out and fewer foreign currencies come in.

The radically increasing trade deficit contributes to the dramatic weakening of the American dollar overseas which is contributing to potentially weakening financial situations within the US.

Of developed nations the US uses by far the most oil/per person. Japan has become the developed country leader in converting from oil based fuels to other sources and even while its economy has grown has actually reduced its importation of oil. Japan produces no oil. European nations use far far less oil per person than the US.

A tax on oil would allow the US to put money back into the US economy in a great variety of ways, spur efforts for alternative fuels, could be used for infrastructure repair, used to mandate and control higher fuel standards on cars, all of which would lead to better efficiency and less reliance on imported oil and less tax money filling the tax coffers of nationalized oil companies.

Reduced oil consumption would free the US from reliance on nations that are intrisically opposed to the Western way. This reliance on oil from these nations is so diametrically opposed to protecting America's best interests that it is probably a cornerstone of any effort at fighting terrorism and defending America. Nothing could be more intrisically tied to the strongest interests of the political right.

The dramatic recent increase in gas prices will only continue without dramatic efforts to stem that increase by reducing demand. American auto companies are so dramatically behind Japanese auto producers in achieving fuel efficient cars. That is one of the most extraordinary reasons behind the amazing loss of market share of American auto makers to foreign auto makers.

Not stemming demand has resulted in a four fold increase in the price of oil since 1991 and after a decade of flat oil prices an extraordinary increase in the price of oil since 2003.

The no tax argument has resulted in the no solution dilemma for America that has seen the price of oil rise to harmful levels as we contribute to the feeding of Iran, Saudi Arabia, Russian, Venezuelan national coffers while the American economy and that of other oil importing nations sees incredible movements of wealth into these aforementioned countries.

 

Can't cut back on use of oil. The American dollar is supported in international markets because it is the currency of preference for oil transactions. Less demand and lower prices would lower the demand for Federal Reserve Notes, and likely completely destroy our currency.

The oil tax has been dreamed up as a new way to subsidize industry that is neither innovative, efficient or truly green.

It's a lose/lose proposition.

I keep telling people that monetary policy (inflation of the supply) and taxes are the end of us, maybe they will get it one day.

 

Taxes won't work because special interests will put the money into their own pockets. The amount of money that the US is giving the airlines is outrageous not to mention the cost of airports and airport security.

The US could eaisly build bullet trains and save all the fuel that is being wasted on domestic air flights.

The distance from New York to Orlando is 943 miles. So a bullet trains can traveling at 220 mph can make the trip in 4 1/2 hours which is faster than plane considering the time to travel to and from the airport and time to pass through security.

Amtrak is 18 percent more energy efficient than either commercial airlines or automobiles on a per-passenger-mile basis. Advanced technology can provide even greater efficiencies; dynamic braking on the Acela Express reduces electric energy consumption by a further 8 percent.

 

Amtrak hasn't been able to turn a profit in a long time. If it wasn't government money it would of been bankrupt a long time ago.

 

Yeah. That is a problem with Amtrak. It cost about 12.9 cents a passanger mile as opoosed to cars and planes cost 8.9 cents per mile.

I'm thinking that without all the subsidies the airlines receive from the government they would be in worse finacial shape than Amtrak.

 

Airlines receive subsidies to offset the financial cost associated with the mandatory security they have to put in place.

 

Japan and Europe have dramatically cut back on the use of oil. Unrestricted use of oil and a lack of looking at alternatives is the long term dumbest move by Americans. High oil prices free dictatorships to surge forward with dramatically anti west programs.

Higher fuel mileage standards and higher gas prices would shift demand to more efficient automobiles. Bingo. That is the significant usage of oil. It clearly has taken place in Japan and Europe.

Nobody here, myself included likes high taxes....but the astonishing increase in the price of oil is an enormous tax going into the pockets of anti american dictatorships at an astonishing rate. It undermines every aspect of Western strength.

There is widespread recognition of this need. The government is way behind the people. It would be a magnificent and smart leadership move by the government to start doing what the states are doing, what the population is more cognizant of, and what is going on in the rest of the western world.

 

Earl, you missed my point about why Oil cannot be cut back.

Without heavy demand and prices of oil to support the dollar, we will collapse the economy. It's a parasitic relationship that has approached the M.A.D. phase.

Re; Amtrak, if the government stopped subsidizing it, the free market would come up with alternatives. But as long as they have an unfair competitive advantage through subsidy, it's difficult for innovators to enter the market.

Subsidies get you more of a particular problem, not less because subsidies remove the incentive to improve and become more efficient.

 

Well it is only getting worse because of the FED's decision to cut the rates and drop the value of the dollar. I guess someone had to get screwed for the sub-prime crap and of course it isn't the rich.

 

Actually, President Bush has been investing billions of dollars into alternative energy research. In my opinion, hydrogen powered vehicles will be common in the US in about 10 years.

 

Since August the dollar is down 8% while a barrel of oil is up 44%

Al Qaeda planned and executed 4 attacks on America in the 1990s all while oil was cheap. 9-11 was planned and executed when oil under $10 per barrel. There is no correlation between the price of oil and terror attacks. In fact one theory is that the more money Saudi Arabia can bring in from oil the more it can spread around its kingdom on social services the less allure Al Qaeda Has.

True Venezuela is run by a dictator but a dictator who is taking oil revenue and spending it on social services while reducing investment in his oil fields. There are signs that oil production in Venezuela are falling its only a matter of time before his deck or cards crumble.

Iran has a surging demand for oil which is eating into what they can export. Since the revolution and the embargo by the US it has not been able to get the technology to increase its oil field production In a couple years they won’t have oil to export and their economy will fall apart also.

A weak dollar is also helping exports surge, offsetting what we spend on oil imports.

As for European nations who use less oil then us per person, one they leave in cities which allows for more efficient use of public transportation and two their cars are much smaller then ours.

As for your Tax on oil, you assume the money would be spent efficiently and it would go towards alternative fuels and such.

 

Chavez is not a dictator. He's an elected official. Just like Ahmadinejad. Please stop promoting propaganda. It's intellectually dishonest.

We have an import economy, with a massive trade deficit. What you are writing may have been true 30 years ago, and certainly 50 years ago, but it is not true in post-NAFTA America.

Your, "This is our Country (John Mellencamp)" GM Trucks are designed globally, the equipment to produce the parts comes from Canada, Australia, China, Korea etc. and the actual production of the sub assemblies is done in Mexico and Canada.

The rest of your post I agree with.

 

Is the writing on the wall? Half to two-thirds of US Dollars are being held overseas.

http://biz.yahoo.com/ap/071118/opec.html?.v=10

 

Good point, but as a lot of peeps here are brainwashed sheeple I fear you are wasting your time trying to point that fact out.

 

There is no difference between a dictator and president for life.

Chavez was jailed for 2 years in 1992 for a failed coup against Carlos Andres Perez. Hitler also tried to overthrow the government (1923 putsch) and later was elected chancellor. Hitler wasn't a dictator, right?

 

Earlpearl, your theory sounds logical, but you fail to realize that there is no shortage of oil on the world market. The rising price of oil is created by artificial scarcity, that is, oil producing nations are urged to reduce their pumping of oil in order to reduce supply and drive up prices.

I believe this is one of the reasons why we "really" invaded Iraq, because Saddam was pumping too much oil, and he also wouldn't except large loans from the EHMs that would allow the U.S. to build infrastructure in Iraq similar to Saudi Arabia.

The whole peak oil thing is a scam, Hubbert is wrong and there is plenty of oil out there. A group known as Bilderberg has been meeting since 1954, and in the last five years they've developed plans to increase the price of oil. The only way to do this is through reducing the supply, through artificial scarcity.

Unfortunately EarlPearl, your plan has already been proposed, by the most powerful people in the world. They are known as the Globalists, the Illuminati, or the Bilderberg Group. It is called the Carbon Tax:http://en.wikipedia.org/wiki/Carbon_tax

Your Tax would be a disaster, it would potentially cause a global depression and destruction of the Middle Class, which is want the Bilderberg wants.

 

The writing has been on the wall for a long time, it was just suppressed. The MSM would rather ask Hillary Clinton in a national debate if she prefers diamonds or pearls, than hard hitting economic questions.

The dumber we are, the more they can grow government and promise answers through taxes and subsidies.

But the internet is changing the political landscape so quickly now. Intellectuals from all sides are no longer resigned to being on dusty library shelves, or the discount book racks at the mall. They are able to socially network and publish with a low to zero cost of entry into the market.

 

Don't look at how he got into that position but rather what he is doing in it. Jailing dissidents, taking the rights of media to broadcast freely, rewriting the constitution which would allow him to become president for living, setting laws by decree. He is slowly dissolving all democratic rule in Venezuela and turning into a mini Cuba but with oil.

As for Ahmadinejad I didn’t say anything about him, but Ahmadinejad is just a puppet for the Ayotollahs that run Iran.

We do live in an import economy but the weakening dollar is actually helping to reverse that some what. Our trade deficit is falling and would even be lower if it wasn’t for the high price of oil.

GM trucks are designed in the United States but also abroad. While some of the components are made overseas the majority are made in the USA. And as the actual production but sorry man but Trucks are made in the USA. GM produces its trucks in Texas. What is assembled in Mexico and Canada are some cars which car lower profit margins than trucks do.

Its not about being brainwashed it’s about understanding what is going on around you. If you see smoke and smell smoke you don't need to see the fire to know that something is burning.

 

Actually the oil producing countries are not reducing supply, outside of Saudi Arabia very few have addition capacity most are running at 100% and why wouldn’t they at a $100 a barrel largely increased in price to do speculators.

Iraq was pumping about 2 million barrels a day at best, they didn’t invest in the oil infrastructure and their ability to pump oil was really limited to what they could of produced.

Or you can increase price by greatly increase demand which is what we are seeing with the global economy growing at 5% the last 3 years.

 

I have intimate experience with this industry. What you are posting is incorrect.

It might have had something to do with the Kuwaitis slant drilling into Iraq, and then the 10 years of bombing and sanctions that destroyed most of the Iraqi infrastructure.