4 MAR 2011, Friday (AM)

• Ever wonder what makes up the total cost of a gallon of gas?  Well, now you no longer have to...just check out the above graphic.
• Remember when Hillary Clinton campaigned for President in 2008 and gas prices were shooting upward then?
• Her solution for relief for the consumer was?  Drum roll...for the government to seize with one hand the "excess" profits of the oil companies while still continuing to provide subsidies to those very companies via the other hand due to their campaign contributions.  Pretty slick!
• Yes, you got it!  It wasn't about you at all...it was merely a reason for government to grab more money to feed itself...PERIOD!
• We know that because, if it were truly about relief for the consumer, governments could have dropped their gas taxes immediately and the consumers would've felt an immediate 13% drop in price...NO???  Problem for the government though is that they would've seen a reduction in revenue...and you know how politicians feel about that, they need your money more than you do!
• OK...hmmm...one more question.  In a capitalist economy, the government determines what "excess" profits are?  Primary question...HOW?  For example, will farmers get their "excess" profits seized when crop prices go up after a drought or flood???
• So remember when this same crap comes back up in the next election...  
• And, be sure to analyze what politicians say.  Don't mindlessly buy their line of poop!
• THINK FOR YOURSELF!
• One more tidbit below...Several unemployment data points on a single chart covering decades of information.  What I want to highlight is the Employment to Population Ratio (red line).  Notice that it is at levels not seen since the 1970's.  Now for a moment, with that many folks not working, what does that mean to the health of income tax starved governments at the state and federal levels?  I think that it can reasonably be said that tax hikes are coming if employment picture doesn't improve rapidly.  Thing is I don't see the catalyst for that since, as we are being told, the economy has been very healthy of late and yet not much employment improvement.  Admittedly, employment is a lagging indicator.
• Just some things to think about on a Friday morning.
• Market continues it's sideways action...nothing to really say.