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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (188687)	6/7/2006 2:07:28 PM
From: jttmab	Read Replies (1) \| Respond to of 281500

I would assume at market prices, or as a loan of physical oil that the recipient is obligated to replace at some point in the future. I would assume that as well. If the quantity is high enough it distorts the trade balance temporarily. How about assessing a "windfall profit" tax on the proceeds and have it directly refunded to the American taxpayer?? In the right pocket out the left. If you deplete the SPR you're going to replenish it at the first opportunity. I'm not sure that what happens is all that important. It's more of an accounting question. As long as Congress doesn't get it's dirty hands on it and go on a pork spending spree. There's probably a law on how it's supposed to be accounted for. Btw.. since you brought up the point, what happens with the Social Security Trust Fund takes in more money from FICA taxes than it distributes to current recipients?? We spend it on other things and rack it all up and intragovernmental debt. If any other industry colluded to set prices for their commodities, it would cause a political outrage. True, but this is an "accepted" business practice. It's like professional baseball, exempt from the anti-trust laws because it's the national past time. Which it isn't anymore. I think the oil industry considers global oil supply in balance. There's as much production as there is demand for it. Besides OPEC, I haven't heard BP, Exxon or any other oil company complain about the price of crude. They're just riding the wave and smiling all the way. [Not a complaint from me.] Prices are artifically high because of the political situation in the mid-east and Nigeria and maybe a couple of other places, but supply is not an issue. It's the traders [people like you] that are willing to pay a premium price for crude on speculation. Adjusted for inflation the current price of gas isn't all that much out of line. We've been here before and survived. It is a predictable result of threatening Iran. One plays the game, one has to pay the piper. jttmab