ads without products

Archive for April 29th, 2008

“possible manipulation in the oil markets”

leave a comment »

From the NYT today:

The split on the gas tax is a relatively rare one for Mrs. Clinton and Mr. Obama, who agree on the broad outlines of policy in most areas. They have both called for the suspension of purchases for the national strategic petroleum stockpile, a supply of oil to protect the country against sudden supply disruptions; new taxes on oil companies; measures to curb global warming; and heavy federal spending on renewable energy sources. They have also called for a federal investigation of possible manipulation in oil markets.

Ha! You mean, like, this? 

Just to be clear, the wars and threats of future wars are not responsible for the entire run up in price, as there’s clearly an enormous increase in demand / plateauing of supply at foot that at the base of this. But the “war premium” ensured that the oilcos were receiving a nicely inflated price from 2002 on, despite the fact that the US economy was falling into recession. The “axis of evil” speech, which turned loose talk into an announcement of imminent action, was given on January 29, 2002. Look again at the graph… 

Nothing would have sucked more, for certain parties, than running the last stable years of oil supply down at $10 / barrel. 

One needn’t believe in direct conspiracy, only capitalist over-determination (that, on its side, looks like underdetermination…) Things happen because they can – fields of benefit fall into place, everyone’s happy and lobbying, and then you get this sort of thing. 

Written by adswithoutproducts

April 29, 2008 at 1:52 pm

Posted in distraction, war

loss leaders

leave a comment »

From the Independent today:

A draft law on the “modernisation of the economy” unveiled yesterday threatens, according to its supporters and some of its critics, to revolutionise shopping in France. Other critics suggest the draft law is too timid. Large French shops will mostly remain closed on Sundays. Little effort will be made to diminish the regional domination of French supermarket chains.

The draft presented by the Economy minister Christine Lagarde will make it simpler to build medium-sized supermarkets. That should encourage “hard-discount” chains such as Lidl and Aldi, which have a relatively small share of the French market.

If approved by parliament, the law would also abolish the existing complex rules which, in theory, forbid sale below cost and force manufacturers to provide goods at the same wholesale price to hyper-markets and village shops.

With inflation gathering pace and wages stagnating, the law is intended to help to fulfil the President Nicolas Sarkozy’s promise to increase the purchasing power of French people.

The federation of large shopowners predicted that the law would reduce prices of food and basic household goods by 2 per cent. Serge Papin, head of the Système U chain of supermarkets, predicted price cuts of up to 3 per cent.

Michel-Edouard Leclerc, head of the Leclerc chain, said the law would “cut inflation in half” by allowing shops to refuse the “excessive price rises” demanded by manufacturers. He predicted a “vast spree” of price-cutting from September, if the law is passed.

Yes, it will slightly cut inflation doubly. On the one hand, grocery prices will go down slightly. On the other hand, massive numbers of workers and owners of small groceries will likely be put out of work and either stay out of work or accept the low wages offered by the hypermarkets that walmartized their shops out of existence. We’ve seen this before – back during the boom in the US the greenspanites couldn’t stop talking about the fact that Walmart singlehandedly kept inflation at safe levels. What they didn’t discuss much is the fact that this is in part accomplished by the proletarianization of the workforce.

The French ban on loss-leaders always seemed to me an incredibly sensible piece of law, one that at once supported employment and consumer convenience and urban vitality. Prices at hypermarkets may go down some, but it seems to me the net effect has to be that prices at small shops will simply go up.

As if we needed to be reminded that each crisis – whether deflation or inflation, whether demand failure or food crisis, poor farmers or expensive food, too-expensive houses or too-cheap ones – will always be met with the same set of responses: deregulation, lower taxes, and the dismantling of the social state.

Written by adswithoutproducts

April 29, 2008 at 12:07 pm