View Single Post
Old 06-16-2011, 08:01 AM
  #4  
MaxQ
Gets Weekends Off
 
Joined APC: Oct 2009
Posts: 741
Default

Originally Posted by Bucking Bar View Post
All Major airline pilots need to read and understand this article:

The Great American Bubble Machine | Rolling Stone Politics

While this will effect everyone, as the marketers and underwriters of nearly all commercial flying, the major carriers are the most exposed.

For those who lack the time, or the inclination, to read the article the conclusion is this:

(1) Oil prices are being manipulated by speculators. The largest of these is Goldman and they can make the call on when oil goes up (which attracts investors) and when it goes splat (wiping investors out with losses).

Goldman is effectively putting a ribbon on a watermelon and tossing it out the window. The investors pile on inflating the price. The insiders get out just before it goes splat.

Our employers are not the "insiders." As an outsider the best we can do is hedge. Of course Goldman makes money administering the hedges too.

Oils prices are killing our employers. The revenues we need to invest in modern technology jets always vanishes among the inflated prices and hedging losses. We're just riding a roller coaster that always ends at a point lower than where it started from.

(2) Carbon Trading Schemes - Bankrolled on both sides by Goldman, politicians are pushing a cap and trade pollution trading scheme. Goldman wants to be in the middle of this trade. In effect not only playing the "Enron" role, but having the power of the government to levy a tax on the schleps like us that create carbon emissions.

The profit potential for manipulating both the input and outputs of our industry are not only astonishing for Goldman (and their peers) but will kill demand for our product as we are forced to price accordingly, then kill our employers.

Answers: I don't know that there are any. Politicians from both sides are in. The ability to educate the electorate is questionable. In fact, it would not surprise me if many pilots don't make it through this article despite its importance to our future.
Bucking,
Oil shortages are real. For some years now the world supply of oil produced is less than that consumed. The difference is made up by alternatives such as tar sands , liquidfied NG (condensates as they are called) and bio fuels. Unfortunately, price manipulation is also real and under our current system speculation bubbles are a certainty. Any attempts to control the speculators is met by viscious resistance and a hugh and cry of Socialism. The sway that such powers as Goldman have over our legislators and media (which leads to the thought control that allows them to have public approval of their lack of regulatory constraints) leads me to doubt that any limits that are effective will be placed on speculators.
You are correct about cap and trade. It is merely a way to redistribute wealth to the few...such as Goldman et al. The most unfortunate result will be almost no impact on reducing carbon emissions (which all serious science points to as a mortal threat). What I have read points to something more akin to fee and dividend as a way to let the market drive towards alternatives to carbon emissions. (read that as something to replace coal...oil in transportation use is FAR behind as a damaging agent). As one who trys to be a rational realist in his philosophy, I have strong doubts as to anything akin to fee-and-dividend as it doesn't siphon any of the money to a few vested interests. Cap and Trade does, hence I suspect it will be what the world will end up with, and it will accomplish little.
MaxQ is offline