Ouchie on gas prices lately

[Pat K]

3.25 A gallon at 1am.

[Kat Kanning]

WND Exclusive Commentary Gas-Gouging Greenspan
Posted: September 2, 2005
1:00 a.m. Eastern

? 2005 WorldNetDaily.com

Many voices are crying about high gasoline prices and price gouging by oil companies, but I think that most people remain wholly unaware of the hidden and, by far, largest amount of price gouging going on right under their noses.

Recently, Alan Greenspan, chairman of the Federal Reserve Board, spoke at a Fed-sponsored confab in Wyoming. As he will retire soon, it was the last time he would address this group as Fed chairman. I'm sure the attendees paid the requisite obeisance to ? in Bob Woodward's fawning words ? "the Maestro."

My curiosity piqued, I decided to do some research and find out just what it was that the Maestro's tenure at the Fed had wrought. Alan Greenspan became Fed chairman in 1987, so I thought that was a good place to start. Using the inflation calculator for the CPI at the Bureau of Labor Statistics, one finds that what $1.00 bought in 1987 now takes $1.72 in 2005. In other words, through the mechanism of inflation, Greenspan so debased our currency that dollar holders suffered a 72 percent loss of purchasing power during his term as Fed chairman, a mere 18 years.

To demonstrate further the perniciousness of Fed policy, I decided to go back to the inception of the Federal Reserve System in 1913. Again using the BLS inflation calculator, I made a comparison between 1913 and 2005. In 2005, it takes $20.00 (rounded from $19.74) to equate to the purchasing power of $1.00 in 1913. In other words, since the Fed's inception, the price level has increased 20 times! Put another way, a dollar today would only buy you a nickel in 1913. That is, since 1913, Fed policy has eroded the value of a dollar's purchasing power by 95 percent.

In my area, a gallon of gas is going for $3.00. According to Microsoft Investor, Exxon-Mobil's profit margin is 10 percent. This means that for every dollar of revenue, 10 cents in net income flows to the bottom line. With retail gas at $3.00, Exxon-Mobil makes 30 cents per gallon. Here in Pennsylvania, federal and state taxes on gasoline come to approximately 45 cents per gallon. But, what about Gas-Gouging Greenspan? To see his tax, we will have to do some math.

Gas costs $3.00 per gallon. Subtract 45 cents in government taxes, and we're left with an ex-taxes, nominal 2005 price of $2.55. Now we must take into consideration Gas-Gouging Greenspan's effect. To do so, we'll divide the ex-taxes, nominal 2005 price of $2.55 by the 2005 price index of 1.72 ($2.55/1.72 = $1.48). So, of the ex-taxes, nominal 2005 price of $2.55, without Gas-Gouging Greenspan's inflationary impact, we'd be paying only $1.48 for a gallon of gasoline. The difference of $1.07 ($2.55 - $1.48 = $1.07) is Gas-Gouging Greenspan's inflation tax.

So, here's the breakdown:

    * Gas-Gouging Greenspan's inflationary take = $1.07

    * Government's take = 45 cents

    * Exxon-Mobil's take (net profit) = 30 cents

In light of these numbers, I ask, who's doing the gouging?

Keep in mind that Exxon-Mobil employs 105,000 people worldwide and must explore for, produce, transport, refine and market its product. Government has to do none of these things ? its take is assured no matter whether oil prices rise or fall. But, at least, government performs some useful jobs, defense being foremost among them.

Because his job is wholly unconstitutional, the Fed chairman has no constitutional responsibilities. He also has no excuse for being the counterfeiting, inflation-mongering, Gas-Gouging Greenspan that he undoubtedly is.

Robert J. Frasconi

[Pat McCotter]

Google on "greenspan gold standard"

True to his principles?

[Kat Kanning]

What google's my mind is that he used to be a cronie of Ayn Rand's.   How can one person change so much?

[polyanarch]

Power corrupts

-absolute power corrupts absolutely.

I think he really believes he is doing the right thing.  He has just lost touch of what that is/was.

There is a funny web-comic about him if you like l33t sp33k  pseudo-hacker- kiddie talk  and economic jokes.

http://www.rdwarf.com/users/kioh/

Alan Greenspan -H4x0r Economist
k33ping d3m0cr4cy l33t 51Nc3 1987

[mvpel]

The problem in Atlanta is that its principal supply of gasoline comes via a pipeline from the Gulf Coast, and the pumps which fill that pipeline went down with the hurricane.  I read that they had a 12-day supply in storage, and undoubtedly that is rapidly dwindling.  Critically-low supply with demand induced by routine two-hour commutes from Atlanta suburbs = sky-high prices.

[KBCraig]

What google's my mind is that he used to be a cronie of Ayn Rand's.   How can one person change so much?

When I read his article on the gold standard in Rand's Capitalism, I kept flipping back to make sure it was really Greenspan. It's a shame he went from that, to the notion that the economy must be centrally managed, with him as the manager.

[Michael Fisher]

What google's my mind is that he used to be a cronie of Ayn Rand's.? ?How can one person change so much?

When I read his article on the gold standard in Rand's Capitalism, I kept flipping back to make sure it was really Greenspan. It's a shame he went from that, to the notion that the economy must be centrally managed, with him as the manager.

Alan Greenspan is proof that even libertarians cannot be trusted with power.   

[SteveA]

The dollar has hit a record low of 1/71st of a barrel of oil.

[Kat Kanning]

Most excellent point, Mike!

[Lloyd Danforth]

The dollar has hit a record low of 1/71st of a barrel of oil.

________________________________

Actually, Mike, Greenspan, who was an Objectivist and not a libertarian, proved he was neither when he accepted the job of heading the fed, an organization that is anti-freemarket and should not exist.

_______________________________

Yesterday, we heard a Mass. State Rep. suggest suspending the state imposed gas tax to give people relief at the pumps.  Russell and I wondered if one of the NHLA's A list reps would suggest the same thing.
The Governor of CT just announced she is considering doing it!

[polyanarch]

Alan Greenspan is proof that even libertarians cannot be trusted with power.   

This is why I am not a minarchist. 

"even libertarians can not be trusted with power." 

Our founding fathers went from the Declaration of Independence to the Constitution in dozen or so short years.  From there it has been steadily downhill for the next 200. 

Government always grows -like a weed.  It can not be fully eradicated.  It springs up even under the most determined attempts to keep it down.  We can't stem the growth of a dandelion by pulling a leaf off every few years -or even every day. 

No, we must hit it with all we've got and be perpetually guarding for signs of life so that we can hit it again!

Gradualism doesn't work.  Minimalism doesn't work.  But yet we still try as the alternative is so messy.  We haven't quite gotten to that yet.  That breaking point so deftly articulated by our founding fathers: 

But when a long Train of Abuses and Usurpations, pursuing invariably the same Object, evinces a Design to reduce them under absolute Despotism, it is their Right, it is their Duty, to throw off such Government, and to provide new Guards for their future Security.

Power corrupts.  Everyone.  Always.  Absolutely.

[KBCraig]

Stable at $2.999 in Texarkana for the major outlets, about $0.12-0.15 less at Wal Mart.

Friday I drove to the next town (about 30 miles) to visit my favorite gun shop. When I passed their Wal Mart, gas was $2.749. When I came back about 45 minutes later, it was $2.899. Most places (other than the last ditch/only option places) seem to have been limiting their increases to about $0.15 per day.

Kevin

[Michael Fisher]

Power corrupts.? Everyone.? Always.? Absolutely.

Now you know why I avoid it like the plague.

Because it IS the plague!   

[Pat McCotter]

Gas price in Concord, NH
Friday - 3.39
Sunday - 3.22