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Grain for Oil, I can go for that

Discussion in 'Uncategorized Threads' started by SeldomShoots, Jun 27, 2008.

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  1. SeldomShoots

    SeldomShoots Active Member

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    More thoughts floating around in email:

    THOUGHT FOR THE DAY


    OPEC sells oil for $136.00 a barrel.
    OPEC nations buy U.S. grain at $7.00 a bushel.
    Solution: Sell grain for $136.00 a bushel.
    Can't buy it? Tough! Eat your oil!
    Ought to go well with a nice thick grilled filet of camel ass!!!



    John E.
     
  2. GoldEx

    GoldEx Active Member

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    Read a book called "Confessions of an Econimic Hit Man" and you will understand why we will never charge them $136 a bushel for grain. It explains why I love my country but I fear my government.

    Jeff
     
  3. SeldomShoots

    SeldomShoots Active Member

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    Jeff, I hate to say this but I don't read books cover to cover very often. Could you give me a cliff notes summary on the book? I'll look for it though.

    John E.
     
  4. OhioBob

    OhioBob TS Member

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    I would surely like to trade 2 bushels of corn today for a barrel of oil.....maybe we should.

    In 1949, the price of corn averaged $1.24 per bushel. Today, corn futures were going for $7.55 per bushel on the commodities market.

    That’s an increase of 508 percent in 59 years.

    Now compare that to oil.

    In 1949, it averaged $2.54 per barrel. Today it was going for $140.50 per barrel. It took about 2 bushels of corn to buy a barrel of oil.

    That’s an increase of 5433 percent in the same 59 years.

    An interesting side note to the food versus fuel debate going on now....the State of Florida just announced that they will be purchasing 642 square miles of land owned by the U S Sugar Corp for $1.75 billion dollars and restore it to promote/enhance more water flowing into the everglades.

    Now Florida isn't the place to grow corn, but surely taking 410,000 acres out of agricultural production that is presently used to grow sugar cane and could be refined into ethanol as in Brazil seems unwise. Not to mention the eventual restoration costs taxpayers will incur once they proceed.

    It seems like we have things backwards from time to time.

    Bob T
     
  5. perga1

    perga1 Active Member

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    What we need is an OPEC for food sales. JRM
     
  6. zinger

    zinger Member

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    or maybe this?

    http://www.youtube.com/watch?v=UOpcPfAarjY&feature=search_on_watch&search=newt%20gingrich
     
  7. SeldomShoots

    SeldomShoots Active Member

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    Newt ticked me off for being somewhat of hypocrit regarding extra marital affairs. HOWEVER, I have heard about these oil speculators driving the prices up and I can fully agree with what Newt is saying in the video. Especially about the part that we still have the control, we just need to show the politicians that we do. I believe Newt has found his calling as an information provider, activist and catalyst. Keep spreading the message.

    John E.
     
  8. Jeff P

    Jeff P Well-Known Member

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    You should remember that while corn is still relatively easy to obtain, oil surely isn't.

    And a question: If the 'speculators' are the ones driving up the price of oil, why do the supplies of oil (as reported each Wednesday on CNBC) continue to decline?

    oil is a physical commodity that delivery must be taken of, by SOMEONE, at the contracted date. If I'm a speculator and I buy a contract for 500k barrels, I either have to sell that contract to someone else, or figure out where to put the oil. If that were occuring the 'real users' of oil would merely wait until the speculators had to take delivery and screw them with a bargain basement offer.

    Sure, there's a speculators premium in oil right now...but what I read is that it's about $10 to $15 a barrel....
     
  9. Dr.Longshot

    Dr.Longshot Banned Banned

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    The trade formula for oil was a Bushel of Wheat or Corn per Bbl of oil if my memory servres me right,I feel it should should still be on the same standard.


    Gary Bryant
    Dr.longshot
     
  10. crusha

    crusha TS Member

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    Folks,

    America isn't the only place in the world that can grow grain. We're very good at it & can grow a lot, but we don't have a monopoly on it - especially when it comes to low-cost production.


    Did you ever hear of a thing called, "agriculture subsidies?" That's what we use to keep prices from plummeting to where it hurts the farmer (hint: they have lobbyists, too).


    Whether it's "wheat as warfare" or "let's drill our way to cheap crude," the economic themes discussed here illustrate that many simply do not grasp that grain, as well as oil, are both fungible commodities on the world market. World markets determine the price.


    If we drill oil here...China can still elect to pay $139 a barrel for it, if they want to - and they will get it, because oil companies are not in business to provide subsidized "public fuel service" for John Q. American.


    Likewise, we can "attempt" to charge $139 a bushel for grain - but that only means that Brazil will under-cut us at $135. The A-rabs are not going to starve, as long as they have $$$.


    I thought the concept of markets was understood...but American public school economics education the past 50 years has apparently produced a bunch of people who think the entire world economy is a command-and-control fiefdom. Some parts are...but many more are not...and less and less every day.
     
  11. JerryP

    JerryP Active Member

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    can't grow grain without oil.
     
  12. gun fitter

    gun fitter TS Member

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    I wonder? How many bushels of oil would produce a barrel of corn oil. If we converted it to diesel and alcohol what is the cost! I'll bet that $ 130 a barrel for Oil is not out of line.

    We should not consider the price of oil as the fault of the oil companies or on OPEC the consumers determine the price not the other way around.

    If we want to blame anyone blame the Tree hugging environmentalists. I used to be an environmentalist but no more. When we could have all sorts of hydro power the enviros stop it when we could have all sorts of wind power the enviros stop it. When we could produce domestically and more environmentally friendly than in other countries the enviros stop it.

    Wake up people it's our own fault. Until people start to vote with their financial interests in mind and some common sense it's not getting any better.

    Joe golderg
     
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