He demands that there be a redistribution of wealth. If not. One man will eventually own all the wealth. And that is not Capitalism.

Why would any of us work then? You make your own bed if you want to sleep in straw that is your choice or if you want satin that too is your choice. You get what you put into it.

There is not one mortgage or bank Exec. That will say that codes and regulations forced them to make a single loan. Because there were no codes or regulations that forced banks to make loans.
 
You may want to look up Community Reinvestment Act. The whole idea of contracts and loans are for the loaner to make a profit. If not why would they be in business?

A lot of what you've said reminds me of Statistism not capitalism.

What is statism?

Under statism, government is no longer a policeman, but a gang of thugs with the legal power to initiate force in any manner they please against a legally disarmed citizen.

What are some examples of statism?

Variants of statism include: socialism, nazism (national socialism), theocracy, [pure] democracy, communism, fascism, tribalism, etc.

What is the key principle underlying statism?

In form many of these systems differ, in theory and blood stained practice they all unite upon the same fundamental collectivist ethical principle: man is not an end to himself, but is only a tool to serve the ends of others. Whether those "others" are a dictator's gang, the nation, society, the race, (the) god(s), the majority, the community, the tribe, etc., is irrelevant -- the point is that man in principle must be sacrificed to others.

What is the opposite of statism?

The opposite of statism is capitalism.

How does capitalism differ from statism?

Only capitalism declares that each and every man, may live his own life for his own happiness, as an end to himself, not by permission of others, but by right, and that government's sole responsibility is to protect those rights, and never violate them, because they are inalienable.
 

Rwest:

Why would any of us work then?

Tk says:

Work outside of society may bring selfish pleasure. But it will not bring wealth.

Wealth is a product of society. There is no self made man within the designs of Capitalism.

We work to promote the, 'Wealth of Nations'.

That is the definition of Capitalism.

Rwest:

You may want to look up Community Reinvestment Act

TK says:

Not one exec had to make a loan under the Re investment act. The reality is that not one exec had to make any mortgage loan. Any loan period. No one was forced to maintain a business. To loan under the terms of the Community Reinvestment Act. Was an endorsement of the act itself. No one can blame a business model/ regulation for his failure. When the business model was the basis for your products future.

Execs made bad loans. Loans that would have failed under any regulation. These loans were doubly troubling when combined with the liar loan.

Rwest:

A lot of what you've said reminds me of Statistism not capitalism.

TK says.

I warned you in my first post that one should not confuse Capitalism with government.

Our government/Democracy guarantees the RIGHTS THAT YOU MENTION. Not capitalism.

Rwest:
How does capitalism differ from statism?

TK says:

Wrong! They differ because Capitalism is absolutely NOT government period.

Capitalism is a economic model. PERIOD.

And according to Capitalism. Capitalism will always fail in the midst of criminality.

Capitalism MUST exist within a lawful Society.

A lawful society only exists in a society that is maintained by a government that justly enforces regulation imposed by the society itself.

The wealth of nations relies on it's regulators and regulations.

Period

The breathtaking fall in world crude oil prices is over, but not without temporary benefit to the western economies.

A windfall savings of 1.6 trillion dollars since July has exceeded all the fiscal stimulus programs of the US, the UK, and Western Europe.

That windfall comes at a high future price, as almost 42% of oil projects worldwide for the purpose of enhanced recovery or new production have been deferred or canceled.

In mid-March, crude for immediate delivery traded at $45 a barrel, while the futures market priced oil for delivery in 2012 at $63. Since then, the entire futures curve has shunted upwards. The oil market isn't only in "contango" – that is, future prices are above those today. The contango now exists across a range of prices which have all surged some 50pc in eight weeks.

Futures aren’t just for speculation. The wiser management of big energy users, such as airlines and trucking firms, purchase futures and options as insurance against price spikes, and to moderate energy purchase price demands long term.

Oil traders are now realizing "demand destruction" arguments have been overdone.

Across the big emerging markets, now accounting for around half of the world's total oil use, consumption is still rising fast, despite the credit crisis.

The global population continues to escalate – and in the most populous countries per capita, oil use is growing faster still. Even in the Western world, the fall in demand has now bottomed out and oil use is growing once more.

But the real cause for concern is the supply side. Amid a lack of finance, large crude exporters such as Saudi Arabia, UAE and Russia have indeed put major drilling projects "under review".

The number of oil and natural gas rigs operating around the world dropped 11pc in April alone. Having fallen for seven months in a row, this "rig count" is now down 42pc since September as energy companies' credit lines have been cut.

On top of that, global oil markets are growing ever more concerned at mounting evidence the world's largest fields are now seriously depleting.

These developments are setting up a "vertical supply curve" – where, as the global economy recovers, just a small demand increase will cause a shocking price jump.

Having said all that, even these fundamentals have been out-gunned in recent weeks by more important trends. On Friday, the dollar index – which compares the greenback to a basket of the world's major currencies – hit a new 2009 low. The index is now down more than 5% this month, one of its steepest falls in 25 years.

As the US currency drops, oil prices rise – not least because crude is priced in dollars. At the same time, the weakness of America's economy means the dollar's "safe haven" status is being questioned.

All this is spooking sophisticated global investors. They worry about future inflation and the debasing of the world's major currencies. That's why they're buying oil and other commodities – as a new safe haven and an anti-inflation hedge. It's no coincidence the decisive shift in the oil futures curve has coincided with the onset of "quantitative easing".

Fractional purchase futures trading can’t be eliminated in the oil market. The market is international, with multiple trading centers, each within a separate nation state.

The belief in the “Full Faith and Credit” of  US government , in the ever increasing issuance of debt is folly.  As ever more debt is created, capital flight to any tangible assets of value insures a massive run up in commodity prices. If the value of the Dollar continued to fall, similar to the value loss of the last 30 days, for one year, imported crude prices would rise by 35% just to cover the currency devaluation. There’s no such thing as free money.

Add in chronic tight supply, and chronic unstable price volatility is guaranteed .

This whipsaw effect, and the resulting damage to long term stability, will destroy the financial system as we now know it. Only the actual time frame is debatable.

Don,

Demand destruction overdone.

Please!!!!!

There was never the demand inspired by the speculator. It was all a farce.  Supply levels in March 2008. Exceeded levels in March 2009. Yet prices were double in 2008 over 2009.

It was a game designed to inspire the peak oil farce.

The speculator has operated under propaganda. Not facts.

The IEA and EIA reports on crude stocks do not include the billions of barrels of crude stored off shore in tankers. Complete disregard is given to the fact that China is stockpiling huge strategic reserves.

There is not only a lack of storage capability in the USA. It has grown world wide, with projections of an absolute loss of future storage capacity within 6 to 8 Weeks. This will force a massive shut down of production. And it will force unimaginable price losses on Crude stored at Cushing.

Almost all Crude contracts are purchased on the margin. They can not be held for indefinite periods.

 The speculator is trying hope upon hope to draw in the uniformed so they can unload their 100 plus dollar contracts on the ignorant and uniformed new investor.

Americans will not be heading out on holiday in any significant numbers.

California leads the American economy. Step out onto any California street. Then bring me back your report on American enthusiasm and vigor.

Stockpiles of crude will grow to such levels that it will be near valueless even in the face of a devalued dollar. (True production costs will exceed value)

The dollar will eventual turn.

If not, Wall street declines to unheard of lows.

And the economy will not recover for at least 6 months after wall street turns to the good on a steady upward rebound.

For heaven sake invest in wall street and drive America onto new heights.

Don't speculate in commodities and drag America down.

Don,

Let's list facts that I have stated previously.

1. Production cuts do not create a shortage. They create excess reserve capacity.

2. Peak oil with regard to production, is a tool created by the oil industry. They turn the spigot on and off as they please. It does not represent crude supply in the ground.

3. Most of America's reserves are on public lands. That gives the government the right to pursue production of these lands without the the condemnation of the uninformed shouts of 'socialism', 'nationalization'. These lands are a property that belongs to society. Not Government or Corporations. So by definition the governance of these lands/properties MUST be so that they benefit the 'Wealth of Nations”. The people.

4. The current state of affairs indicate it is only “The people', that have the money to properly avail our nation, the use of it's valuable natural resources.

TK continues:

Non conventional resources such as the BAKKEN can be profitable at 40 bucks per barrel and will return to the drilling boom of the 08 at 70/barrel.

A discussion that connects resource availability with production is dishonest. The resources are there beyond the imagination of most Americans. It is the dedication to extract those resource that is limited.

Combining the huge resources of crude with the reality of alternative energy that is available today. Such as Hydrogen. America has a future in energy leadership of the future.

Transforming America to a Alternative energy nation.

And exporting crude to less wise nations.

The dinosaurs need to get out of crude and into Alternative energy, or face extinction.

WHy should I work is someone else will work and I get to share his wealth??

Don said:

A windfall savings of 1.6 trillion dollars

TK says.

If I am illegally charged a horrendous price for a product.

Then the price is reduced without giving me back the money that was originally illegally taken from me.

I have a difficult time imagining any sort of savings.

The fact that the price was returned to a legitimate level. Does not bring back the money already hauled off in the cart.

I am still suffering the 1.6 trillion dollar loss.

I am just not suffering further loses. And that can hardly be described as a savings. Let alone a windfall savings.

Mexico,

So you intentionally chose to avoid the facts.

Wealth does not exist outside of society. Your wealth will be in proportion to the wealth of nations. No matter the economy you chose to live under.

You work for the betterment of society which in turn benefits you.. That may include sharing the cost of imprisoning the criminal. And it may include sharing the cost of cleaning the streets of the dead incompetent. You may have to help in feeding the orphaned.

You may also have to share the burden imposed by the lazy on society.

There is even a cost within the most tyrannical government to execute those that refuse to work. You will be expected to share in those costs. The executioner works at a premium.

Those are the realities of all societies. Of all governments. Of all economic models.

Of course there are those who can not bare the burden of reality. It depresses them to imagine cooperation. Imagining a working society in which the villager provides for the farmer and the farmer provides for the villager. Drives them near to insanity.

Mexico, the likes of you toss about the word capitalism with out regard to it's truths.

Please Mexico. Espouse any economic model that you wish.

But don't invent a means to grow your selfishness. And then call it capitalism

The oil production complex is international in scope, and not controlled by any single entity. 

If this was true, prices would have remained stable within a narrow range. Long term business plans would have remained on track.

Although present domestic reserve storage is still at record levels, supply has been declining for the last two months, and will continue the downtrend going forward.

Present pricing trends are still extremely volatile, and we could see yet another short term price drop before the next rise.

stockpiles of crude will grow to such levels that it will be near valueless even in the face of a devalued dollar. (True production costs will exceed value)

The dollar will eventual turn.

If not, Wall street declines to unheard of lows.

And the economy will not recover for at least 6 months after wall street turns to the good on a steady upward rebound.

For heaven sake invest in wall street and drive America onto new heights.

Don't speculate in commodities and drag America down.

Yeah, right. The Dollar is toast, and will continue to devalue at ever increasing rates, just as it has done long term since 1971. The dollar will turn? Reread your Adam Smith. A national debt is the poison that destroys the financial system. The Wealth of our Nation was squandered years before it was earned. The nation is bankrupt.

The DOW will never recover to previous highs in constant dollars. Resource and energy shortages will strangle creation of new, real capital, on which the DOW values are ultimately based. In constant dollars , the DOW never regained it’s 2000 peak.

Investing in Wall Street, which is a rigged game, is for fools. I guess you haven’t watched as those that did have lost a third of their wealth in the last year. Yeah, wise move.

In an economy based on debt created fiat currency, the only solid assets are commodities, and real money has always been backed by real commodities, with gold being the most common.

Commodities are the last refuge to preserve savings in the face of monetary devaluation (inflation).

Those of us that work for a living have nowhere else to turn.

And of course, if citizens don’t like the high price of gasoline, there’s an easy solution...buy less of it.

Don,

You are ignoring the facts.

Not only is there a record USA supply of crude. There is a world wide record supply of crude. China has been stockpiling cheap crude in it's strategic reserve for months. Tankers are full. Billions of barrels worth. You can't just say these excess reserves don't count. And make it so.

Projections are for a world wide lack of future storage, within 6 to 8 weeks. We haven't run refineries at over 85% in years.

Your trying to sell crude. Your not buying. Your trying to entice others to take your crap off of your hands. Good luck. But it better happen in less than 8 weeks or even you will be toast. You will be stuck in a 40 buck per barrel world. Holding 100/barrel crude.

Gold huh?

Let see. Gold was 900/oz in the 80's. Where is it now?

Wheat, milk,cows, pigs.. They bounce like a ball. Sure if you have play money and want to day trade. There's money to be had. But that is selfishness. There is no patriotism in creating misery for your fellow citizens.

Do you think it is honorable to suffer your returning vets with 5 dollar/gallon milk. And 4 dollars/ loaf bread?

Troopers died for you and your family. And you hope to squander this gift, so that you can be a day trader. You find righteousness in burying their future in a financial hole.

Playing with commodities as if they are your personal toy. Not buying on the basis of facts.

The dollar has gone up and down in the past few months. It will be back up in just a few .

Just as you said. The reduction in crude price has created a new world as far as foreign trade. Trillions of dollars of cash are no longer being shipped overseas.

That will have a greater effect on the value of the dollar than any other near term item. The Middle East is spending their reserve dollars at incredible rates.

As far as reducing the use of gasoline. That has been the American trend for more than 2 years. We are actually using gasoline today at the equivalent t level as in 1981.

Travel in the world is now rivaling the horrific post 911 world. The bottom has fallen out.

China will be building alternative energy vehicles not only for themselves But for sale in the USA.

It's a new alternative energy world.

Wake up Don!

"We have oil supplies at a 20-year high at a time when demand is falling at the fastest pace on record," said Cordier. Based on supply and demand, oil should likely still be hovering closer to the yearly low around $33 a barrel, he said.
http://money.cnn.com/2009/0...