veracitatus

Peak oil hasn't "fooled" me. I don't get my understanding of the issue from news and commentary. Rather I go to more informed, scientific sources. The link I provided points to some of those. The "find" in Brazil has yet to be proven both in size and recoverability. Remember the Jack 2 find in the Gulf that was supposed to solve all our import problems? Hear much about it anymore? There is a reason.

As I said, everyone would like to find some convenient "other" to blame for oil prices. Sure speculators, manipulators, etc. can account for small pieces of the run up. But the basis for the level of the run up is the flat production in most oil fields and slowing production in the North Sea, Mexico, Russia, and others. Republicans may be dumb on the whole - they brought us GWB - but they can't be all making money from oil stocks. Besides, any gains from oil investments are going to be offset by the inflation caused in all other sectors. Republicans may be accused of being selfish, greedy bastards, but they're not so stupid as to shoot themselves in the foot. The correlation between oil prices and economic downturn is well established. Even the oil men know this.

V. posted 06/17/2008 at 11:28:12

Hang in there Perry. You are right in this way of thinking. The people who are complaining (except the poor) are those who are pissed off that they can't afford that next iPod or go to the big NASCAR race since they have to pay so much for gas for their SUV.

I do feel for truckers but they are going to have to find a way to pass on cost increases to customers. We should all be sharing in paying for the advantage of eating tomatoes in mid January.

The first commenter here apparently isn't familiar with peak oil. Try visiting http://www.theoildrum.com/ to see what is really causing this cost run up in gasoline. Stop trying to find someone else to blame. You are the one who used all that past oil for the frivolous privilege of having all that stuff. If you want someone to blame, look in a mirror.

V posted 06/16/2008 at 21:07:55

That is one of the things I included under the idea that harmed consumers have difficulty getting their story heard. Bottom line is markets don't work as long as someone is gaming the system. The typical republican/neocon/libertarian mindset on this issue is mind boggling. You have to ignore an awful lot of hard evidence to keep believing a 'free' market will solve all issues. posted 03/30/2008 at 17:07:43

It's all about information feedback.

In a free market a producer or service provider sells consumers their products. Some consumers are harmed by those products/services. The news media reports to the general public about the harm caused by the producer/provider. The public responds by not buying from that producer/provider. Producer/provider gets its act together and does a better job.

That's the way its supposed to work.

In fact there are lots of flaws with this mechanism in real life. Consumers who have been harmed have difficulty bringing their story out. Lawsuits are expensive and now discouraged. News media aren't interested until so much damage has been done that the story gets interesting. And consumers don't really read stories about other harmed consumers unless they are full of wow factor and even then they don't necessarily relate it to their own lives.

Market-based corrective feedback is slow and full of noise. It cannot accommodate the pace of today's marketplace. Hence supervisory regulation needs to be used to better ensure that market rules are being followed.

The biggest problem in America today is that no one wants to pay for the inspectors and auditors necessary to get the job done properly. Remember - cut taxes is the solution to all our problems. posted 03/29/2008 at 11:58:21

There is an interesting take on the whole "regulation of markets" business at:
http://questioneverything.typepad.com/

Several of the blog posts suggest alternative views of many neoclassical economics principles, including what the nature of money really is (March 25th entry). The author basis regulation concepts on principles from hierarchical control theory which has a more solid basis than neoclassical economics based on growth. posted 03/28/2008 at 12:52:38

Actually I find the explanation simple. And it applies to both political sides, especially at the extremes.

When a person doesn't understand how things work the brain resorts to whatever ideology is at hand. Ideology need not correspond with reality, or reality at the present time. It need only seem plausible to the mind possessing it.

Then when the ideology fails, decisions made under that ideology turn out wrong, the brain has another neat trick. It rationalizes. It starts from a believed conclusion and works backward trying to find reasons why that conclusion is truth.

We all do this to one degree or another and it is what consistently gets us into trouble. Our rationale seems so believable to ourselves that we never even question it. This is why perfectly serious people, people who are sincere in their statements, end up being deniers. They literally cannot see reality for what it is. They see it for what they want it to be so their egos can be protected from criticism.

The cure for ideology is science, just as it is the cure for religion. But I have a very cynical view of the majority of people getting this simple truth.

V. posted 03/24/2008 at 10:22:39