Wednesday, February 4, 2009

Its All About The Oil

What I'm Thinkin'

If you read one of my earlier blogs you will see I stated, once the Bailouts start there will be more requests for money. Here they come.

But what is really happening here?

Here is how it works: businesses and governments all make budgets for the next year, they predict expenses and try to adjust expenses to make a profit or savings. You may even do this with your income.

There is one cost factor that drives the economy more than any other. Oil.

Think about this. Everyone budgets to spend a certain amount of money in each area budgeted for, right. Well, what happens when the price of a barrel oil goes up? Gas prices go up. What happens when gas prices go up? ALL other prices must go up. Have you been to the grocery store lately? The prices jumped and are still up. Why? Gas prices went up.

Take the Postal Service - now in financial trouble. Why? Gas prices. They budgeted for gas for 200,000 vehicles to deliver the mail 6 days a week then gas prices went from $2.00 to $4.00 per gallon. This in itself is a huge portion of the loses that hit the Postal Service. I do not know why they seem to have forgot this.

Think about this; everything is connected to oil.

We trade everything for oil. Its all about the oil.

The weird thing is that everyone has forgotten all about the oil and is blaming our current situation on everything but oil, AND IT'S THE OIL!

Oh, I am not saying the banking and auto industry are not a mess, they are. But all our wealth went to the Middle East.

When will we learn? We need our own energy source. The Middle East has been a huge draw on the wealth of our nation for almost 40 years. Remember the energy crisis of the 70's. What has changed? Nothing. They robbed us then and they are still robbing us.

What I'm Thinkin'

Sincerely,

Timothy James Maki

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