Howdy friends and neighbors. It looks like if we need real news reporting nowadays we are going to have to subscribe to the National Enquirer. Another prominent, elitist, super-politician (Sen. John Edwards) who stands at podiums and makes speeches on how I should live, has admitted to an affair. The National Enquirer broke this several months ago. Of coarse, now all the major bobble-head media has put this story up front and the sales department has a reason to sell ads again. Well, Senator Edwards can get some good advice from Bubba Clinton, Rev. Jessie Jackson and the latest guest on the Jerry Springer show. I’m laying 6 to 1 odds the next scandal will involve someone with an elephant on their lapel pin. Enquiring minds want to know.
One thing that keeps popping into my head this past week is the fact that crude oil futures have dropped about $20 to $30 a barrel. Then, I wonder why the price at the pump doesn’t fall nearly as fast as it goes up. The price of commercial fertilizer hasn’t moved either as natural gas has dropped as well. I guess the energy companies are too busy counting money and flying to DC for congressional hearings to notice that the price of crude and natural gas has fallen. I’m sure there is a long, drawn out explanation that involves a lot of supply and demand curves and graphs coupled with the fact that the Olympics have started and a tropical storm may be developing on the African plains. Then we must take into account the fact that the higher priced crude is still stuck in the pipelines, refineries, and on pup trailers at semi truck stops where the drivers haven’t even woke up yet.
Maybe the oil companies are waiting on the price of food to fall before they lower their prices so they can still afford to eat. Not only has crude dropped, but corn, wheat, oats, cotton, beans, sugar, pork bellies, canola, rice, cocoa, coffee and orange juice have all dropped as well. Cattle and hogs are basically at the same price they were several years ago. But I think the food manufactures, wholesalers, and grocers are waiting on the price of gas at the pump to fall before they lower their prices so they can afford to go to work.
My overall guess is that we as consumers are probably not going to see much of a drop in the price of goods. The producers of raw product get blamed for prices going up, but are forgotten when the cost of raw product drops but the end prices never falls. Farmers and oil companies are getting the blame for higher food and gas costs while busting their rears trying to produce more to meet the demand. Self-righteous politicians stand at podiums and shake their fists and tell consumers they can fix it. BULL! Soapbox rock stars don’t have a clue that the ones producing raw product are doing all they can do under the regulations and mandates from the know-it-alls to make hay while the sun is shinning, so to speak. There isn’t an oil company or farmer out there that wishes they had less to sell when the price is high. I keep hearing from the “DC crowd” how we need to drill more. Do they not think oil companies would if they could?
Next, lets say we can drill. Where are the labor force and engineers going to come from to drill more? Just like where are we going to find more land to plant crops on and graze? Maybe GM and Ford need to retool to build offshore drilling rigs? As a Capitalist, I still like the quote, “the cure for high prices, is high prices.”
I’m Monte Tucker, and that is what’s under my over-priced hat.
