Posted on | June 20, 2008 |
Just to let everyone know, aspirative bronchitis is no fun. But I’m back and finally ready to roll.
It seems OPEC has made the amazing observation that the laws of supply and demand have broken down. This is because oil is a true oligopoly. A WHA? An oligopoly is where a service or commodity is controlled by a small number of entities. Like, say, the BIG SIX. The laws of supply and demand do NOT operate in an oligopoly any more than they do in a monopoly and there is what is known as market failure. Demand goes up, prices go up. Demand goes down…prices go UP. The market is caught by the short hairs because greed sets the prices and because there are only a small number of companies, they can fix prices how they please. Yes, there are some smaller companies outside the BIG SIX, but they have to play ball or risk being forced out of the game. THIS IS WHY THE GOV’T USED TO REGULATE OIL. But because of the Reagan Revolution, Government has gradually left the regulation business. Our dear president Bush doesn’t give a s*** about the consumer, because his oil buddies iz happy. Result–Five bucks a gallon by August?
I’m still not 100% after my recent illness and because we’re starting the summer doldrums, I’ll only be updating twice per week on Tuesdays and Fridays through the rest of June and July. I’ll be taking a SCHEDULED break in August during the governmental recess. Update on Tuesday guys!