Bloomberg.com displays a news story about oil price, confidence in business and inflation. The title is,
“Europe Inflation Quickens on Oil; Business Confidence Drops“
The notion of “supply and demand” seems to be inadequate in controlling oil prices – in the heavily industrialized world. Here is what Wikipedia says about “supply and demand”:
Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an economic equilibrium of price and quantity.[...]
One of the first things one might do, in a case where supply and demand seems to be failing is to look for “natural enemies” of supply and demand.
It is totally stupid to call anything by NAME if that name has not been defined. Economy is a name. It has been defined. It is inside a “box”. It is REGULATED.
Those things that attack the notion of economy should be looked at. And they were. Here is what America’s last neocon President saw when he looked at oil and America’s use of oil:
Bush: ‘America is addicted to oil’
http://www.nytimes.com/2006/02/01/world/americas/01iht-state.html
But not everyone, as is often the case, saw the same thing when looking at oil.
You can’t think of oil without seeing “$$$$$$” signs. That’s what Americans see every time they fill their tanks. And that’s what Representative Ed Markey saw when he looked, some time ago, at oil prices:
Oil Speculators Cost Consumers $31 Billion this Summer
http://www.huffingtonpost.com/rep-ed-markey/oil-speculators-cost-cons_b_120713.html
One leader looked at oil and focused on oil prices, the other leader focused on oil consumption. One leader was on the money – the other was a distraction to the problem.
The Bloomberg article, speaking of conditions in Europe, speaks of inflation and business in the same news title. That is indeed rare in America. Generally, in America, LABOR is associated with inflation.
America has had twenty-some-odd years of relating inflation to LABOR!!!!! America’s neocons have kept a “foot on labor’s neck” for twenty-some-odd years. Joejolly has displayed a graph that shows how labor was denied increased pay for its increased productivity.
However, when the price of oil goes “through the roof” much of America’s “current events” news pool don’t talk about it. And suggestions of “over-indulgence” comes from neocon leadership. The neocons(government) are business friendly. Business is responsible for its bottom line only. If and when the government craters, that’s a social problem.
Many leaders of countries have “stashes” throughout the world as a hedge against “a day of reckoning”. If the country they manage craters, those with dual citizenship can “high-tail” it to that country. And for others a “stash of cash” might work just fine elsewhere.
Europes’ problem resolution seems different from neocon America. Neocon America has “untouchables“. If those untouchables figure in a problem, the problem is not likely to be solved by neocons.
The untouchables, in both 1929 and 2007 were untouched by America’s G.O.P. leadership. The 1929 fiasco is now a matter of history. Historians and perhaps even archeologists are waiting to reveal to the world details of how latter-day neocons problem resolution works.
Tags: america is addicted to oil, business confidence, economy, inflation, labor, oil prices, oil speculators, social problem, supply and demand, untouchables
