Posted on 05/24/2008 5:40:18 AM PDT by RayChuang88
NEVER going to happen. We will never see $2-a-gallon gasoline again in our lifetimes.
As the brilliant Michael Lewis wrote once, everyone who is in a market is trying to manipulate the price. That is the whole point of being in the market.
The reason speculators can make a profit is because the price that sellars can sell for, today, is lower than the price that buyers can be forced to pay in the future. If there were no arbitrage opportunity there could be no speculation.
Of course they have an impact on prices. That is how speculators (anyone who is not, simplistically, a producer or consumer of the commodity) make money. That is the point of the game. The reason why they are allowed in the game is that they provide some value in providing liquidity and making it possible for producers and consumers to hedge risk.
I contend that because of 50 years of easy living and easy money, helped along by the rest of the world taking fiat in exchange for valuable goods and services, we have a very very large structural problem in the US economy. Before we can slim down, and live within our means, we have to cut out a lot of parasitical activities, including a legal system that takes 6 or 7 years to settle simple disputes, a governmental system where untold trillions go to beltway bandits to produce papers and viewgraphs to "inform" the policy and regulatory process, a regulatory scheme that encourages fee seeking and rent-seeking behaviors even though little or no value is provided in return for those rents and fees.
Of daily life in the average corporation, or especially daily life in a governmental or regulatory agency or law firm, what fraction of your time is spent doing something that provides a real direct benefit to a customer, client or taxpayer. Of your purported income, what fraction do you have voluntary control over and freely spend to obtain wanted goods and services, as opposed to services and fees that you are forced into willy-nilly.
The laws of supply demand cannot be revoked and if these devices, which can power homes as well as automobiles become the norm, the oil producers will lower their prices to wherever they must in order to sell their product.
Where will the hydrogen fuel come from?
How do they drive it up and make a profit?
It's the old formula. Buy low, sell high. Selling above your costs is the usual way you make money in any business.
Agreed, but consumers are trying to manipulate the price downward, while speculators and profiteers are trying to drive it upward. The gasoline we buy today is no better as a fuel than the gasoline we bought for a third the price 5 years ago. So we're getting nothing more for our money at all. Speculators add nothing to that product. They simply make phone calls, ride the market up, then sell when it approaches its peak, collect the money and wait for the next opportunity to profit by doing nothing. They CREATE a "demand" that exists only on paper, and not even a demand for the commodity per se but for the profits inherent in an upturn of the commodity's price.
They are the ultimate in parasites, and their profits always come at someone else's expense. They are the bane of capitalism, the deadbeat fat-cat the socialists always point to when they need to indict the free-market system.
Hydrogen comes from water.
One molecule of water is comprised of 2 atoms of hydrogen and one atom of oxygen bonded together.
That still doesn't explain how they drive it up.
He said he was going to take his best shot by voting GOP. Do you have a better shot? E.g., a way to take the nomination away from McPain? Or a third party with a decent chance of winning?
Voting is not a statement of principle. It is an act of political expediency.
That is why I said Hydrogen fuel cell “like”. Technology changes and we advance in a geometric fashion with esch advance fostering greater and more rapid advances that follow. Probably what the ultimate solution will be, if in fact there ever is an “ultimate” solution (as opposed to an ever evolving one) it will be something unheard of today. Or perhaps it will be the finding of the key to use cold fusion as a power source. This would give us the great power of the sun and seemingly would solve our energy problems forever.
thanks, bfl
So where are they keeping all this oil that they are supposedly buying up?
It will always take more energy to extract hydrogen from water than the useful energy we will get out of the hydrogen.
IMHO, you’re right on the money.
Thanks neverdem for the link.
Given the geometric progression of technology, it is impossible to make a claim like this with any certainty. Besides, I didn't say this was the answer. I said "hydrogen fuel cell LIKE" power source. What I meant by that was something other then fossil based fuel.
Given the geometric progression of technology, it is impossible to make a claim like this with any certainty.
Only if you have a weak understanding of physics.
Besides, I didn't say this was the answer. I said "hydrogen fuel cell LIKE" power source.
What else is "like" that?
What I meant by that was something other then fossil based fuel.
You mean a fuel source that doesn't use more energy than it gives? Yeah, that would be a better answer to our energy needs. Try something that actually has energy in it already, like oil, coal or uranium.
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