Nationalize the Damned Oil Companies!

Right-wingers who read the title of this post may have dumped a load in their underpants. Sorry about that.

Gas jumped to $3.99 yesterday from $3.77 the day before. Why? No reason other than market speculation.  Reasons are no longer necessary because The People are becoming used to being kicked around.  It’s like breaking a horse- after some initial rebellion, they at last acquiesce. Been to the grocery store lately? Coffee is $10, bread $2.50, steak $9 lb. What’s the newest number on mortgage defaults here in the land of the free and home of the brave? About 4.2 million loans are seriously delinquent or in foreclosure. How about  jobs?  Didn’t the GOP run on that slogan?  I can still see Boehner telling voters that their #1 priority in Congress would be, Jobs, jobs, jobs!” Today we anticipate the government report that’s expected to show a slowdown in job growth.

Wow!  The Government and its minions are sure working hard for The People. Republicans, it seems, are quite satisfied with what they have ‘done’ for The People. “Jobs” are hardly mentioned except to demagogue some other far-right issue. They still blather that moronic line about not raising taxes on millionaires because ‘these are the job-producers.’ Interesting thought, but patently false. Tax rates on the uber wealthy have been at historic lows for a decade and where are those ‘jobs’ that they are producing? Scam artists! Do The People still believe this crap or has the far-right cried Wolf! once too often?

Right-wingers are still defending Big Oil, too.  When will The People get that one, too? ‘Drill baby, drill!’ still stuck in their heads? Have you noticed the bevy of oil company ads on TV lately? ‘Do you own an oil company?’ begins one of them. Another touts the fact that we get most of our oil from ‘right here in North America.’ Yea, Canada and Mexico.  They are also ‘hard at work’ helping to save the environment.’ One can’t even laugh at that one. What have right-wing Republicans done to help Americans with the pain at the pump? Go ahead, think. Are you coming up with a blank?  Me too.  Hey, how about President Obama nationalizing the oil companies? Wouldn’t that be a hoot? Wow! wouldn’t that put a big knot in the undies of the righteous right-wingers?

So, why wouldn’t he do it? Or threaten to do it?  After all, the moronic Republicans voted last week to default on the ‘good faith and trust of the government of the United States.’ Boo! How would the oil companies react to the threat of nationalization? And their minions in Congress?

Just think of the win-win of the nationalization of oil companies: prices down for the consumers and the U.S. Government raking in trillions in profits! If The People were OK with the ‘nationalization’ of Fannie Mae and Freddie Mac as well as Citigroup, then why not Big Oil? Perhaps one of our right-leaning regulars could list some reasons why that would not be in the best interests of The People.  One other thing.  It occurs to me that this nationalization would have a further benefit to The People.  Our Government could designate which oil-producing nations we would designate as suppliers and which ones we would prohibit.  Like Iran or Libya. Geopolitical leverage. Benefit #3.


26 thoughts on “Nationalize the Damned Oil Companies!

  1. Muddy you’re right, speculators are partially to blame for those gas prices shooting back up.

    Then you have to ask yourself, “Why would the speculators be betting on a rise in the cost of oil?”

    How about a moratorium preventing American companies from drilling and producing?

    Obama bombing another oil producing country?

    US government funded radicals creating unrest in every oil producing country in the Mideast?

    Now if you were in Vegas with that information and could bet the farm that those things might influence oil prices, you’d be an idiot not to take the bet!
    That is speculation.

    And you’re going to bitch about the price of coffee and other groceries?
    THAT, is called inflation and that is a direct result of Obama’s non-stop printing of money and devaluing our dollar!

    I have been telling you for how long that this would be the end result of that bullshit for how long? 3 years at least?

    And, not only would you NOT listen, you were calling me a fool for mentioning it!
    If I had the time right now, I’d go back through your achives and link you to every time I warned you about overspending, devaluation of the dollar and printing money and what it would do…well, now you’re seeing it.

    As for nationalization of the oil companies, tell us how the government could run them AND make gas cheaper for the consumer.
    It can’t.
    First off because you libs have made it impossible for the oil companies to drill anywhere or, refine on American soil and, nationalized or, not, they’re still beholden to the price of foreign oil and refining capacity.

    2nd, the other option is to subsidize the fuel industry which means that Joe taxpayer will get screwed via a tax increase which would probably end up soaking him for more than the price of filling up @ $4 a gallon 52 weeks a year…unless you just think the government will print the subsidy money and create cheap gas out of the same thin air as the dollar thats buying it!

    And yes, nationalizing the oil companies would cause the right wingers to flip…because that is the kind of crap they’d warned everyone about from the beginning!

    So while you’re here bitching about the cost of gas and groceries, YOUR candidate for “hope and change” is now planning another flood of printed dollars known as “quantitive easing” into the monetary pool!

    And brother, if you think for 1 second that nationalizing the oil companies would give us leverage to designate who we buy from, you’re nuts!
    You’d be giving those selected nations the ability to set ANY price they wanted to and, they could also just cut us off in protest!
    See what a pound of coffee costs when you have to pay for the non-existent fuel to get it here!

    We’re right back to the Carter years with this president while you try to schluff it off as a republican problem.

    The problem is that you’ve been so busy cheerleading failure for the last 2 years that it took you this long to see what I told you was comming 2 years ago!

    I saw a bumpersticker the other day that read…
    “If you voted for Obama in 2008 to prove you’re not a racist…
    You’d better elect someone else in 2012 to prove you’re not an idiot either”
    Truth via a bumpersticker!

  2. Sepo again demonstrates that he doesn’t know what he is talking about by misusing the term “quantitative easing”.

    In no way does quantititative easing actually place “printed money” in the “monetary pool”.

    How it actually works is that a central bank usually buys financial instruments. For example, in introducing its QE programme, the Bank of England bought gilts from financial institutions, along with a smaller amount of high-quality debt issued by private companies. The banks, insurance companies and pension funds can then use the money they have received for lending or even buying back more bonds from the bank. The central bank can also lend the new money to private banks or buy assets from banks in exchange for currency.

    Even if you don’t have quantitative easing, the fractional reserve system of banking also “creates” money through loans. Since, seppo doesn’t know about fractional reserve banking (or the statutory minimum required reserve), he doesn’t bother with the fact that debt runs the economy.

    The increase in bank reserves from the quantitative easing process causes an excess in reserves and private banks can then, if they wish, create even more new money out of “thin air” by increasing debt (lending) through a process known as deposit multiplication and thus increase the country’s money supply.

    The hope is that the consumers begin to feel “confident” that they can take on more debt.

    Some economy!

    1. Yes Laci you are correct in saying that QE doesent flood the market with dollars BUT, it does create electronic dollars that causes the same outcome, inflation.
      What I meant was monetization of the debt when I was referring to flooding the market with paper dollars.
      Thanks for the correction.

      1. Likewise, you demonstrate a lack of comprehension of the English language. Monetarisation of debt means that these dollars are being quantitatively eased into the hands of the wealthy, not schlubs like you, seppo.

        Here’s that inflation data for you again, seppo:

        Year Jan Feb Mar APR
        2011 1.63% 2.11% 2.68% 3.16%

        Hardly hyperinflation.

        Try become a part of reality, seppo, or does your statement of individualism include choosing your own reality and the very fact that experts believe something is sufficient to disprove it since you know far more than any “experts”.

        And what are YOUR credentials regarding economics, seppo?

        1. The government doesent factor food and fuel into it’s inflation numbers which incidentally are the best indicators.

          So, ohh wise one, what the hell do you think the result is whenever governments print money and flood the maket with dollars.
          Inflation everytime it’s ever been done!

          Thanks for the link…did you also read where it says

          “Inflation increased again this month (May) with monthly inflation at 0.64%. Annualized that would result in 7.68% over the year. Dairy products are up 1.7% in a single month, fuel oil is up 2% in a month but the major factor is gasoline which is up 7.5% in a single month!

          The key question is whether the current price increases are a result of Quantitative Easing (printing money) or supply disruptions like droughts and flooding and Middle East unrest? Another possible cause is the declining value of the Dollar. Although the decling dollar can actually be considered a result of Quantitative Easing as well.

          So using the data from the page YOU provided they’re stating that at this point right now, the 2011 inflation average will be…

          7.68% for the year.

          During the depression it was 9% and some change annual average!

          They go on to state…

          “At this point it certainly looks like inflation is beginning to take hold. The official numbers say motor fuel has risen 33.2% over the last year but total inflation is at 3.16%. But fuel costs may begin to trickle down to other costs shortly. The monthly inflation rate over the last four months is 2.61%!. That means that out of the current 3.16% inflation only 0.55% came from the first eight months and the remainder came from the most recent 4 months, If that rate continues for the next eight months our annual inflation rate will be 9.48%! Inflation rates above 5% begin to cripple the economy as we saw with the last Oil spike. So as the low monthly numbers continue to drop out of the equation over the next eight months we could see a significant spike in the inflation rate and possibly another round of recession. And an inflationary recession can not be fixed by printing more money. The only cure is fiscal responsibility and that takes time and a government that is willing to act responsibly- which is sorely lacking these days. But it isn’t just the government individuals are also lacking responsibility.”

          The left’s “solution”?
          Add more to the debt, print and devalue the dollar even more and then while gas is over $4 bucks a gallon and grocery prices are rising like crazy, and then go on tv and tell those people “it’s working”.

          Obviously Laci, you’re their target audience because while you’re paying those higher prices for everything, you’re still dumb enough to parrot the lines they gave you when deep down even you can see that you’re being fed a line of shit.

          Yes, we’re seeing inflation and, yes it is directly connected to the imaginary money they told you wouldn’t hurt anything.

          1. Typical septic, you lot start having to pay close to what the rest of the world pays for petrol and you start whining. Last I checked, the price of petrol in the wasn’t too out of line with the rest of the world.

            Likewise, you are still paying reasonable prices for milk and so on. In other words, a pint of milk doesn’t cost $100+.

            As I pointed out the last time you made this silly comment economists generally reserve the term “hyperinflation” to describe episodes when the monthly inflation rate is greater than 50 percent. At a monthly rate of 50 percent, an item that cost $1 on January 1 would cost $130 on January 1 of the following year.

            In simple terms even seppo might understand hyperinflation is inflation that is very high or “out of control”.

            If anything, seppo demonstrates a lack of economics in his comment.

            And no, I am not parroting lines the way you are sepp, I am trying to explain the economic facts to you.

            But you are factually adverse, seppo.

  3. SEPP, I have to disagree with : “And you’re going to bitch about the price of coffee and other groceries? THAT, is called inflation and that is a direct result of Obama’s non-stop printing of money and devaluing our dollar!”

    Not in this case! The cost of groceries is a direct result of our ethanol subsidy. And, who do we have to thank for that? Well, none other than Al Gore! Here is the way that went down. I am working without notes, so as to date I can be corrected. I believe that it was 1994. The vote came up in the Senate, and as we know the Vice President can cast a vote only in a tie senate vote. On the bill adding ethanol to gasoline the senate tied tied exactly 50-50. Gore cast the aye vote to pass the bill, and then Clinton signed it. From that time on, no politician has had any fortitude to stand up against this subsidy. What it has done is to substantial raise the price of field corn and corn is a major additive to most of our grocery items. Why did Gore cast an aye vote. He writes that he was already preparing for a presidential run in 2000 and he wanted Iowa’s vote and other corn growing states. He sold us 98%ers out for a future run for the presidency. (Aside: Lets give Pawlenty some credit here. He has come out against the ethanol subsidy.) In any event it is corn and ethanol that is responsible for the increasing prices of our groceries., not the dollar or the printing of money. Our rate of inflation is low….We need to stand up to the corn growers and the pooliticians who support such stupid subsidies….

    1. Yes UTF, the ethanol issue does contribute to the prices of most of our food which is corn based (over 4000 different products at the supermarket) but, some consumer goods such as coffee and cotton products aren’t corn based and their prices have inflated along with the corn based products.
      Gold, silver and other metals have been shooting up in price while the dollar has been devalued.
      Over the last 2 years an oz of gold has gone from $870 up to $1542 at today’s close.

      It’s the indicator that’s saying the spending, borrowing and printing is now beginning to bite us in the ass due to the dollar being walked closer toward being worthless every day.

      And if you think the price of our corn based products are expensive today, wait until mid summer when the corn crop is 5 weeks behind due to the wet conditions! Some guys are debating if they’ll even get a crop in at all and have been talking about crop insurance and their deadline to get it!

  4. I call it the John Holmes effect. John puts 12 inches up your ass then graciously backs out two. You sill have 10 inches up your ass but, somehow, you’re terribly grateful.

  5. “Hourly compensation costs, 2007 [Fig. 2]
    Hourly compensation costs measure the cost to employers to hire one hour of labor in manufacturing. They include payments made directly to workers, as well as employer expenditures on social insurance.

    In some countries, taxes and subsidies related to employment also are included. For this measure, hourly compensation costs in national currencies have been converted to U.S. dollars using market exchange rates.

    Manufacturing hourly compensation costs were highest in Norway, at 1.8 times the U.S. level. Australia, Canada, and 10 of the 12 European countries had higher hourly compensation costs than the United States. Spain and Portugal were the only two European countries that had lower hourly compensation costs than the United States. Hourly compensation costs were under $11 in Mexico, Taiwan, and Portugal.

    Fig. 2 ( Well, unfortunately the bar graph did not copy, probably my non-techincal brain has it screwed up, lol)…So, here it is in long hand:

    Norway $55.03 per hour for labor
    Germany 50.73
    Denmark 47.54
    Austria 43.17
    Netherlands 39.47
    Sweden 38.80
    France 37.68
    UK 36.66
    Ireland 35.62
    Australia 34.75
    Italy 32.19
    Canada 31.91
    U.S. 30.56 which is ninth from the bottom

    Yet, the United States is the wealthiest country in the world and the leading manufacturing country in the world. In 2007 the U.S. MANUFACTURING OUTPUT was $1.831 TRILLION, China $1.106, Japan $926 BILLION, and GERMANY, who DOG GONE has seem to misrepresented, was a distant fourth at $670 BILLION.

    So, the world’s wealthiest country ranks ninth from the bottom in hourly compensation of the other industrialized countries. Wonder where all that money is going? Certainly not to the 98 percenters!

    1. Now UTF, take those compensation numbers and cross reference them with the tax numbers of those nations!

      While those Europeans are seemingly making more money, their governments are taking back up to 65% of that hourly compensation while the USA is still leaving it’s citizens with a majority of their own compensation!
      Then add in the 19% VAT natioanal sales tax on everything they buy and subtract from whats left!
      Then factor in their $8 a gallon gasoline prices which is mostly tax!

      Clothing? You’ll pay 80 euro for a pair of Levis jeans on sale from 109 euro!
      THAT sir is $115.90 (ON SALE!) for a fucking pair of jeans that you can buy for $22 here in Toledo!

      Think about that.

  6. “One other thing. It occurs to me that this nationalization would have a further benefit to The People. Our Government could designate which oil-producing nations we would designate as suppliers and which ones we would prohibit. Like Iran or Libya. Geopolitical leverage. Benefit #3.”

    Not sure I get your point there, M_R

    I have long supported your viewpoint, M_R. However, it seems to me that the federal government ought to have the ownership of all the natural resources of the country, i.e., oil and gas, water, wind, sun, thermal, coal, minerals. These resources are natural to all of us, you know, “we the people”, not to be exploited by a plethora of greedy corporations. They take them from us and then pass all their expenses and profit onto us. These all should be a national monopoly of the federal government with the profit motive eliminated. We are giving the intrinsic wealth of our country away to corporations and who benefits. Well, take a look at my previous comment; these exploiters of our national wealth pay us an hourly wage ninth from the bottom of rankings. Don’t need a rocket scientists for that, lol….

    BTW, air traffic should be nationalized as well….

  7. Sepp wrote: “US government funded radicals creating unrest in every oil producing country in the Mideast?”

    So you don’t like the “arab spring” and the growing democracy?

  8. And, Sepp wrote: “How about a moratorium preventing American companies from drilling and producing?”

    To be sure we wouldn’t want safety and protection of the environment to be considered after the BP Gulf spill, now would we. How many people were killed aboard that rig? Manslaughter charges? Hell, no! A moratorium was only in effect while safety measures were evaluated. And, of course, our Democratic Sec. of Interior, an oil man, speeded the process up with half measures. Sepp, I don’t have a problem per se of drilling; we need oil and why be held hostage to the Middle East. But, it needs to be tightly regulated by the government and not the industry….

  9. Then, Sepp wrote: “As for nationalization of the oil companies, tell us how the government could run them AND make gas cheaper for the consumer.
    It can’t.”

    Yes, it can! FDR did it with the Tennesee Valley Authority, the TVA. Produced abundant and cheap electrical power for millions of people, and not only that it stopped soil erosion and provided a tremendous agricultural
    base, and a growth of industrialization in these areas. Only a government could accomplish all of that.

    Moreover, only a strong central government could have done similar with the great hydroelctric projects in the West…No, private company could do the Hoover Dam. Yes, government can and should!

  10. Finally, Sepp wrote: “And brother, if you think for 1 second that nationalizing the oil companies would give us leverage to designate who we buy from, you’re nuts!
    You’d be giving those selected nations the ability to set ANY price they wanted to and, they could also just cut us off in protest!
    See what a pound of coffee costs when you have to pay for the non-existent fuel to get it here!

    And, your buddy, Donald Trump has the answer. We just declare a “war” and go take the oil and the coffee. There you go, Sepp, your perfect candidate!

      1. And what your tea party and republican nitwits have done in less than a year!

        They are the ones trashing the economy with their silly games.

        1. You have it backwards as usual Laci.

          Stopping the government’s overspending, printing money and, creating inflation IS NOT what is wrecking the economy!

          I’d love to see your household finances if you agree with how the government runs it’s finances!

          No wonder you have money problems.

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