New US Economy Policy Message Board

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Strategies & Market Trends : New US Economy Policy

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From: Arthur Tang	6/16/2007 7:41:37 AM
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Since housing and automobiles cater to the demographics of the new US economy, overheating and overcooling of economy is fine tuned with gasoline price. It is a much smaller step to rein in over heated economy that interest rate can change, and it is faster reacting from week to week instead of a lag of three months for interest rate change to become effective to control economy. The gasoline price at the pump changes with the next load of 5000 gallons each week. Every gasoline station could sell up to 25,000 gallons per week. The cost of alcohol based gasoline is very cost effective. 10% alcohol and 90% water with some MTBE for octane boosting, and grease dissolved for low rpm torque. The cost of alcohol is 65 cents per gallon(only use 10% per gallon in gasoline); MTBE dissolved in alcohol costs 20 cents for 87 octane. Grease and water is in pennies. The refinery generally only does mixing of components. Formulation with natural gas(less than a penny cost) added in place of grease is more troublesome, and could cause fire and explosion at the refinery; also create excess flood and tornadoes in counties that needed water from rain(caused by residue from excess natural gas not completely burned in internal combustion engine). So, gasoline price supports federal, state and local government on gasoline tax, which is the larger chunk of the price collected at the pump. Each nickle tax collects $60 billion for the federal government. $1 tax can bring in $1.2 trillion tax income per year. Which can be reinvested in urban renewal projects and other government services. So, you can see why gasoline formulation project became a national security project and generally is a kept secret. But Wall street must understand this; in order to know what state the economy is at any time. And alcohol based gasoline is renewable and recyclable by farming(co2 back to ch complexes).

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