Hi Guys and Gals,
I have been made aware of some things suspected in the back of my mind.
Check these out investigate and make your own decisions,
Old news that just proves a few sheep are finally looking up, but much too
Your freedom and sovereignty has been bartered to the highest global
corporate bidder by your politicians. As of this week in NOLA, this country,
once cherished and fought for, is history, and there is not a damn thing you
can do about it.
Besides, who gives a rat's ass as long as you can watch American Idol, right
after the network evening news.
News? I don't think I've seen actual news on television since the
dawn of CNN.
I closed a plant in a small town, which is unfortunately bound to be
"news". One of the most shocking things about this was observing the"
news" articles that were written or broadcast about that event. Other
than a couple of prepared press releases, I offered no interviews or
additional information. Unbelievable what was "made up" to fit the
agenda targeted opinion that was published or reported as "news".
You sir, are not smart enough to be given the facts and formulate your
own opinion regarding same. But not to worry, someone will do it for
Take in mind also the further proof that politicians and big business are in
My son was looking at the Exxon annual report, public information, between
2003 and 2007 Exxon's sales have almost doubled. No doubt, the gasoline
prices have almost doubled. The gross profit however has almost tippled.
So when they say the prices of oil has gone up they also mean that their
mark up on those prices have increased by an additional 50% over the last 4
years also. Congress investigates to appease the public and we hear nothing
except that there was no law broken. What Congress does not tell us is
really why the price of gasoline is going up. They don't want to look for
a solution, like getting rid of the law that prohibits new refineries from
being built. They don't want to show how the oil company mergers have wiped
out half of their competition. Then take into consideration that the oil
companies don't participate in price fixing. HA! For price fixing they
would all have to get together to agree on a price. That would be illegal.
Let the ignorant media do that dirty work for us. One of the oil companies
will indicate to a reporter that oil prices have gone up and gasoline prices
are going to go up in a few weeks. The reporter on national TV reports this
information for all to see including all the other oil companies. The news
report is the trigger for all the other oil companies to raise their prices
and oddly all on the same day.
Do you remember in the not so distant past when the news rarely mentioned
anything about gasoline prices and those prices were more stable? I agree
that the rising price of oil is part of the problem but the rising price of
oil does not cause gross profits to increase an additional 50% in 4 years.
And then this morning there was the Expert from Consumer Reports indicating
that is a waste of money to put premium fuel in a car that only requires
regular fuel. That was true before there were computers, knock sensors and
fuel injection in the modern car. I assure you my son and I both get about
10% better gas mileage by using premium fuel over regular.
Simply put, higher octane fuels help to decrease the chance of engine knock.
The computer can control engine knock/ping by listening through the engine
knock sensor. If the computer hears a knock it retards the ignition timing
electronically. Retarding the timing gets rid of the knock and decreases
power and fuel economy. If the computer detects no knock it will advance
the ignition timing until knocking is detected. Advancing ignition timing
increases performance and in turn fuel economy. Remember, higher octane
fuel is less likely to create engine knock than regular fuel.
Premium fuel is a benefit if the mileage increase percentage is more than
the price difference percentage. As fuel prices increase the percentage of
price difference between premium and regular fuel tends to be less. Many
years ago premium was commonly 50% more expensive than regular. Today it is
about 8% more expensive.
Rant off. ;~)
The price fixing is on the other end of the pipeline,
and competitive pricing is further squelched by the
throttling effect of limited refinery capacity. Excess
capacity is excess overhead.
Suppose when the price of petroleum goes up one company
decides to hold the line at it's stations and take the reduced
margin. In a free market, consumers would be attracted by
the lower prices and the company that held the line would
increase its market share thus raising its net profit, albeit
on a lower margin.
Problem is, that company cannot increase its supply to
keep up with that increased demand. First of all, most
companies are already operating their refineries at
peak capacity. Also petroleum, like wood, is a natural
product with considerable variation in its properties
dependent on the source. If a refinery begins receiving
feed from a different oil field it will have to retool to
handle those differences.
Aside from those problems, petroleum is delivered on long-term
contracts. Their suppliers, like everyone else's, are already
pumping their quota and are not allowed to pump more.
Other suppliers are already pumping their quota and under
contract to deliver to other companies and so cannot (or
will not) sell to the company with the lower prices.
So instead of capturing a larger market share, a company
that undercuts it's competition would run short on product,
soon losing at least as much market share as they initially
Not all petroleum comes from OPEC nations, But enough
does that they control the price on the world market.
Which means that our patriotic American Oil companies are selling us
their domestically produced crude for the same price the Saudis are selling
Which, if true, I suppose is where Exxon-Mobil makes a good chunk of their
$49 billion profit?
Whoever said there is no honor among thieves was right.
Dave in Houston
Of course they do. If it's not stockholders demanding that world market
prices be met, then some rich conglomerate would buy all the gas at the
lower price and immediately bump it up to world market prices making an
immediate, immense profit.
Actually, $40 billion on $400 billion total revenue - or 10 cents on the
dollar. The also paid $30 billion in income tax.
Check out MicroSoft. $51 billion total revenue with $14 billion profit
- or 27 cents on the dollar! They did pay $6 billion in income tax.
With that big of margin, I wonder why they charge so much since they
have over 90% of their market? Oh, that's right, they're in business to
make money for their investors, which includes my IRA funds.
I'm happy I invested in Exxon-Mobil - took the sting out of the current
On Thu, 24 Apr 2008 07:44:06 -0700, Doug Winterburn
But this seems to indicate that their accountants are so bad that they
paid 3/4 of their profit over to income taxes? Even 30B on 72B gross
is way high. Corporate taxes these are nowhere near 42% these days.
Something smells funny here. I see the numbers, I just want to know
the "rest of the story".
Corporate Income Tax Rates--2008, 2007, 2006, 2005, 2004, 2003, 2002,
Taxable income over Not over Tax rate
$ 0 $ 50,000 15%
50,000 75,000 25%
75,000 100,000 34%
100,000 335,000 39%
335,000 10,000,000 34%
10,000,000 15,000,000 35%
15,000,000 18,333,333 38%
18,333,333 .......... 35%
Plus applicable state, plus any capital gains which are not favored on
the corporate level.
Looks strange, but the system is set up to create "effective" tax
rates. For instance, when you hit $335K the system maintains an
effective tax rate, essentially a flat tax of 34% on all income to
that point and up to $10MIL. From there, gradually goes up until you
reach the top amount where the intent is for the effective tax, that
is the tax on 100% of the income to be 35%
On Fri, 25 Apr 2008 07:00:46 -0700, Doug Winterburn
Yeah, I looked up some numbers too. Can't imagine that, if this is
the whole story, they're not crying publicly about how nearly 1/2
their mega, record setting profits are being turned over to the
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