ladypink's Blog

Some say that higher oil prices will not affect our nations economy and they point to last years high oil prices and the cost run ups. Indeed good point on their behalf, but realize there was lots of money printing going on and lots of borrowing and spending too.

But also realize that when middle class America starts cutting purchases we will see America sneeze a little and that means many smaller economies in the World we purchase from will catch a cold. What does high oil prices have to do with it all? Well if people spend more on fuel, then they spend less on consumables meaning retailers cut back on buying and inventory. So consider this a moment will you?

With Inventories being less for large retailers, it also means that small manufacturers who want to service the large retailers will have to be able to adapt or die to the relentless need for that retailer to move products faster and faster and inventory the products at their manufacturing facilities, and then move them quicker. Next consider getting the stuff to market and the cost of fuel too. The retailers suppliers will have to cut costs, as retailers hold payments and accounts payable for longer. And the suppliers will not be able to afford to run their own trucks because the fuel costs will take them out of the running to offer the lowest cost to the purchasing departments of retailer, store the product, make the product, ship the product and offer the best terms on payment to the retailer.

You see this is only one aspect to the many behind the scenes issue in only one sector of Retailing which is hurt by high oil prices. But as you follow the supply chain down to the city or town level you will see issues with tax revenues, services and jobs too. Consider all this in 2006.

Lance Winslow

We need a viable solution to prevent consumer price spikes in commodity trading with ethanol. We have seen what has happened with commodity traders running up the price of gasoline every time there is significant world events, which will cause a supply and demand conflict. During the 2005 Atlantic Tropical Hurricane Season we witnessed gasoline prices in excess of three dollars per gallon and oil prices of $70 a barrel.

If in the future we use flex fuels and E85 Ethanol we may see incredible price spikes in fuel due to droughts or floods in the Midwest causing problems with growing crops or the corn that will be used to make the ethanol. We need better genetically modified crops, which use less water and grow faster. It would be best if these genetically modified crops used terminator seeds so they would not interfere with the other crops or become mixed. Monsanto makes terminator seeds and that would solve this problem.

It additionally one of the major issues will be trying to prevent extreme weather. Either a significantly long drought period of four or five years or massive rainstorms and flooding will cause huge price spikes that the consumer may not be able to afford. The United States military is working on strategies to control the weather and it is time that we use these strategies to also protect our crops. If we can control the weather we can control the cost of fuel and to that means a more stable economy. Please consider this in 2006.

Lance Winslow

Many Americans cannot understand the supply and demand issues with oil companies or why the price of gasoline has gone up so drastically. They do not seem to want to accept the fact that there is a finite supply and any one time in the pipeline both literally and figuratively. And we have 250 million cars in America and in this year alone the latest survey from the North American dealers association states that they expect 16.5 million new cars to be sold. Although 16.5 million only a handful will be hybrids.

However, there is good news on the horizon and that is that America will be growing more and more of their fuel each year and automakers such as General Motors, Ford and the Chrysler group together plan on making at least 4 million cars next year, which are flex fuel enabled. This means they can run on E85 Ethanol, which is 15 percent gasoline and 85 percent ethanol. Or they can run on straight gasoline with a sensor inside, which determines how the engine will be set to run.

Of course all that is being planned in conjunction with U.S. automakers and the Bush administration, with plenty of the new initiatives for cleaner fuel and less dependency on foreign oil. The goal is to help America to the habit on Middle Eastern oil, as we have been addicted to long. Of course, if you consider only 16.5 million cars being built each year it will take quite a while to replace the over 250 million cars already on the highway. Such a plan is a long-term plan and will not be accomplished overnight. However, as new technological breakthroughs, come forth, we will see a faster run towards our goals. I hope you will consider this in 2006.

Lance Winslow

Some people fault the wealthy families in the United States and say they are elitists and exploit the people for their own profits, power and pleasure. Yet, those who make such accusations often fail to see how much these families have contributed to the economic growth and growing of the middle class in America. Recently this was debated in an online think tank when one think tanker stated;

by?Lance Winslow
Articles form Healthy Living