The price of gas is a poor indicator of how well a country's economy is performing. Think I'm wrong? Check out the gas prices in Venezuela. They can't give the stuff away.
In the USA gas, or petrol as it is called in the UK, has a checkered price history. When I was first buying the stuff in Kansas City, we often had what was affectionately known as a gas war. Gas got as low as 12 cents a gallon. Happy days! But, not to last. In those days I'm fairly sure the USA was self-sufficient in gas. Before OPEC, gas was plentiful, cheap and readily available. Furthermore gas prices have always been variable from state to state. California gas prices could make you cry?! Currently it's at 4.40 a gallon. It's 2.43 in KC. In the UK, a litre (4.4 liters per gallon) is £1.25 Making a gallon of gas about 5 bucks. What is clear is that the price of gas is a poor indicator of almost anything. Yet, it is a question which concerns the American public and folks in the UK I can assure you.
Gas is a function of the price of energy in general. Your packet of Oscar Meyer bacon has gas as a function of its retail price. The farmer who raises the pig, the slaughterhouse which processes the meat, the factory that slices and packs the meat in a carbon-based container, the bacon curing process, the advertising budget of Oscar Meyer, the consumer's trip to the store to buy the bacon all are components that decide the price of Bacon. Fixing the actual reason for the recent rise in bacon prices to the mast of a particular policy or politician is whilst very probably self-satisfying to some folks and an anathema to others overall not very sane, relevant or important.
Clearly, for a variety of reasons, some good, some possibly spurious, food and gas prices are only going in one direction. This is likely to continue regardless of who is in office.
American consumers need to wake up and smell the coffee. In the UK coffee it's between 9 and 14 £ per kilo (2.2 pounds) in the USA it's about 8.50 dollars a pound- that makes it about 3 bucks more expensive in the US. Your Starbucks is going to get more expensive. Inevitable. If you are a big coffee drinker, I suggest you switch to tea!
Both the US and UK have been cheerfully living high-on-the-hog (pardon the pun)by effectively ripping off the commodity producing nations. They used to do it very nicely with gas until the advent of OPEC and the demise of Texas gold. With pork, the Chinese consumer is now mopping up any cheap pork and the US consumer is paying the price. As more Chinese eat bacon and pork, the cost to the US or UK consumer is going to go up. It’s Economics 101.
As a result of the Biden administration's conversion to a greener energy policy, the consumer is going to continue to pick up most of the tab for the energy component of the rise in commodity prices.
BTW (an aside) A US lab today reported that they are on the verge of the Holy Grail, commercially viable nuclear fusion which will make arguments about the price of almost everything redundant. Unfortunately, this may well not happen until beyond our life-time. Our grand or great, great grand-kids may well look back on this and wonder what all the fuss was about!
Until fusion comes on-stream the price of energy will continue to sky-rocket and we (the consumer) will bear the brunt of any price rises. This will be true no matter where you live. The idea that the U.S. can insulate itself from the global economy is a pipe-dream. This was at the core one of the policies of Donald Trump. MAGA - make America Great Again - presumes that somehow America stopped being great at some time. It plays to the same audience as Charles Lindberg’s tribal appeal called America First before WWII.
When the New York Times interviewed Donald Trump in March 2016, one of the reporters, David Sanger, suggested that Trump’s foreign policy could be summed up as “America First”—“a mistrust of many foreigners, both our adversaries and some of our allies, a sense that they’ve been freeloading off of us for many years.”
“Correct. O.K.? That’s fine,” Trump responded. Sanger pressed him to be sure. “I’ll tell you—you’re getting close,” Trump said, in his typically staccato style. “Not isolationist, I’m not isolationist, but I am ‘America First.’ So, I like the expression. I’m ‘America First.’ ”
This is one factor is driving the US consumer into fits of apoplectic rage. Even with sleepy Joe onboard the focus is on the consumer and their perception of the meaning of America First in consumer affairs.. What Donald and Joe forget to tell the electorate is that at the bottom line politicians of whatever persuasion can be powerless to affect the price of either gas or bacon. They can, of course, and often do tinker around the edges by tweaking the tax or import duties on particular products. This may assuage the public for a bit and effectively kick any real decision down the road, but, and this should come as no surprise, all politicians do this all the time. After all, why take a potentially awkward decision or even worse a potentially vote-losing one when you can effectively b***s*** the public and do nothing at all.
Addendum
The withdrawal from Afghanistan has been overshadowing everything else in the news. Neither Trump, Biden or Boris come out looking particularly well. Joe Biden has taken a pasting, and rightly so. People wanted out of Afghanistan, but thought that the folks organising it might have put a bit of thought and effort into it. The UK media are blaming Joe for not seeing the demise of the Afghan army as a real possibility. They are probably right.
Wednesday, August 25, 2021
Price of Gas and Pork
Tuesday, July 06, 2021
Brexit (again)
BOJO Bulldust
The illiterati remain obsessed with chanting “Brexit is done, get over it and move on!” Unfortunately this is a classic case of, “can you smell that stuff you shovelling”!
Brexit is not done and is unlikely to ever be done. Current rows about the status of Northern Ireland serve only to underline the point. The choice of the majority who voted for Brexit must be respected, yet in the country in particular politicians are placed in an almost insurmountable position. Everybody knows that Boris is a chancer, after all it's part of his charm. But when cornered, his true colours often glimmer through the mist. Don't forget :he left David Cameron thinking that he might support the Brexit deal and campaign accordingly only to overnight become a committed leaver. Bottom line, Boris is a shuttlecock floating towards the end line and hoping to land in and not out. Or, should it be the other way around? Who knows with Boris?
The current spat with the French is as unedifying as it was predictable. Moron Macron sees votes in a bit of roastbeeefs bashing and Boris would love to wear the Henry V mantle and give the froggies six of the best - trousers down. . "Monge too" as Del boy would say. All good clean fun you may say. On the day a delay to unlocking is now delayed for four weeks, and Boris has so annoyed the speaker that he might have to take six of the best in the Commons :it's not surprising that the Boris balls up of Ireland has slipped down the list of things to deal with. Let's just kick it down the road again.
As attractive as this might seem it's, in reality, a fantasy.
For, the Irish question has been kicked down the road so often, surely the ball is flatter than a witch's chest. But, is there any chance Boris actually has a plan and knows more than we do? Not likely.
If he does it's probably a dose of electoral reality. Successive Unionist led governments at Stormont have known that the day is coming when their electoral majority will disappear. Boris knows this as well. He knows as leader of the Conservative and Unionist party, he could never openly betray the Unionists. But, the present Northern Ireland deal provides for a plebiscite of the people of Northern Ireland if they wish to have a United Ireland. Maybe the arch chancer is happy to just waffle and bluster and wait for demographics to come to his rescue.
Or, he has found that the EU, for all its blustering, can do little practically to annoy him.
Dealing with Dominic Cummings may actually cause him more problems than Brexit and NI combined, but that’s a story for another day.
News today is that the NI executive will be reconstituted as Sinn Fein agree to power sharing with the new ultra-right-wing Ulster Unionists. As unrest grows on the street prior to the onset of the traditional marching season, Boris just ignores it. After all, that’s what he did with NI to get a deal with the EU, so why not try it again? Then, next day Mr Poots , newly installed dup leader, resigns over a deal he did with sinn feinn to promote the Irish language. (a day is a long time in Irish politics)
Boris reaction : spout more platitudes.
I watched a very interesting documentary about the founding of the Irish Free State. I suspect that few people know that the partition of Ireland was agreed by the British government to be a temporary situation. At that time even the NI unionists were on board with guarantees from the UK that they would be protected within a united Ireland. As we know, this did not happen and in the end the Irish were unwilling to be part of the commonwealth with the British monarch as Head of state.
Now we see again that the unionists will not supinely countenance any kind of a united Ireland. And, as we approach the marching season, things are likely to get worse before they get better.
Whose responsibility?
Surely, it’s got to be Bonking Boris.
Tuesday, March 02, 2021
ID Cards v Social Security
Solving two problems with one plan?
ID cards for Britain are in the news as Boris contemplates getting out of the Covid emergency and hitting the sunny uplands of freedom. So, what’s all the fuss about? On the surface it seems a no-brainer. You get your Covid vaccine, you apply for a card (with photo ID - maybe just like a driving license), you go to the pub or cinema and show your card, you get in. Painless? Were it only so simple?
The British aversion to anything that even smells like, let alone looks like a government required ID card has a long history. Oddly up until 2011 there were cards, first introduced during World War II. The legislation requiring them was allowed to lapse. However, if you ask John Q Public they will persuade you that ID cards are a EU invention and, as we know, anything that smacks of Europe is simply toxic. So, when Boris semi-suggested that ID cards might be useful in the post Covid world you might have thought that he suggested incest as a recreational activity or a penchant for sodomy as a prerequisite to register to vote.
What has always struck me as odd is the public’s lack of understanding of how ID cards affect illegal immigration. The British, chiefly the English, are obsessed with the idea that illegal immigrants are flooding the country and stretching an already over-stretched public service, milking the tax payer in the process. This single issue was the most telling in the Brexit debate, particularly for the over 50’s who did most of the voting. The English have always had an ambivalent relationship with “Johnny Foreigner” or Wogs as they used to be known. Most “oldies” still subscribe to the theory that Wogs begin at Dover, the French are dirty and duplicitous, the Germans bombed our chippy, the Spanish and Italians are just lazy Dagos and the Greeks are - well they are subject to all the ills known to mankind. Best just get rid of them and keep England for the English. Lest you think I’m joking, I’m not. Most polls will show that my summation is just about right. So, you might well think, the first folks who would be all in for ID cards would be the Brexit supporting numpties who voted to get out of the EU in the first place.
Error.
This is the amazing bit. ID cards would go a long way towards eliminating fraud for benefits. No ID card, no benefits and also no access to the NHS. Solves a lot of problems without much pain. Why not just do it?
Boris succinctly puts the view forward that it’s just not the done thing. It’s too much like the state interfering in the rights of the people to be assh****. (That’s Tory policy in case you were in any doubt.) Despite the fact that it makes a lot of sense and is relatively easy to do, Boris is very sceptical and for all the wrong reasons.
Contrast this with the Social Security system in the US. It is almost impossible to work legally in the US without a social security number. (That is not to say, of course, that the black economy of cash in hand payments to low paid, low skilled (perhaps illegal) immigrants is not known or not a problem.) But, The Social Security system goes a long way towards bringing everyone into the known economy.
Latest news has Boris and the Tories warming to the idea of some kind of ID system once we exit from the Covid nightmare. Let’s hope the reports are close to the mark: I for one would welcome a system which not only help people access their local pub, but also helps to mitigate the worst excess of an illegal immigration.