Hurricane Katrina

I can not imagine the death and destruction that Hurricane Katrina inflicted on the families of the Gulf Coast. To lose one's home and, even worse, memories is something that I don't wish on anyone, not even my worst enemy (unless my worst enemy is Osama bin Laden, then, yes, it could happen to him). My thought and hopes go out to everyone involved for as speedy recovery and rebuilding as possible. However, I suspect that they will be picking up the piece for a VERY long time. I suspect more than 5 years to fully rebuild New Orleans and Biloxi. From North Carolina's experience, there are towns still rebuilding down east from hurricanes that passed through 2 years ago.

But let me take te opportunity to complain about something here. It isn't the direct impact on gas prices that has me down (though maybe a little bit). I put the whole situation in perspective. I refuse to truly complain about gas prices. I can pay $3.29 per gallon (which our President assures us is temporary), especially when I think about all those people in New Orleans and Biloxi. I'm sure all those people would be "happy" to pay that price for gas because it would mean that they still had places to go, they had jobs, places to shop, eat, home to travel to and from. So I am grateful that I have all those things and am able to pay the gas prices.

My biggest complaint is, of course, with government. Not necessarily this administration, but many past administration who did very little to prevent these gas prices. Decades ago there were fuel crises. Long lines, rationing, high prices. It has been over 30 years since it was a clear reality that prices of oil will be controlled by forces outside our control and that one day, we WILL run out of fossil fuels. My question: How long will it take to develop reliable alternative fuel sources?!?! Where has the earnest investment in these alternative sources? In one of his state of the union addresses, the present President Bush wanted to spend what seemed like a ridiculous amount of money developing new types of engines for automobiles that will not be reliant on gasoline. This was actually the ONE thing that President Bush said hat I actually liked (I try to find something else he said that I liked and since it is taking too much time, I decided that there probably isn't anything). Had previous presidents made commitments to alternative fuel sources maybe we wouldn't be in such a fuel pinch and still "slaves" to the Middle East. If we didn't need oil related product, the US would be less involved in the Middle East, which, of course, would result in an entirely different world today! (For better or worse, I am not sure, but I have a guess).

I think I know the reason why such an earnest investment in alternative fuel sources has not been undertaken: $$MONEY$$. Fuel companies mke a killing, no matter what the price, because people have no alternatives to their sources of power. "They have us by the balls." Economically speaking, gasoline is inelastic, meaning that a change in price will result in a relatively small change in the demand. As a result, fuel companies incomes are guaranteed beacuse we still have to buy their product, there are no substitutes. And with this secured income, money is spent on supporting presidential campaigns for candidates least likely to push the alternative fuel solution. In fact, follow the logic here, they are the one more likely to push for war on oil producing countries. By fighting a war there are several benefits to the oil companies: (1) the government must buy more fel to fight the war (2) the possibility of victory will make it easier for US petroleum companies to operate in these foreign countries, thus lowering costs, which does NOT translate into lower prices at the pumps (they keep the same prices resulting in greater profits!).

But there is more! Before Hurricane Katrina, the price of crude was rising, and so was the price at the pump. And as the consumer was cringing each day as they drove past the gas station, the investors were livin' large! Since gasoline is inelastic with no substitute, investors in oil companies on the stock market were raking in the (potential) money. "Buy low and sell high" is the motto for market speculators who are seeing a higher and higher prices. What is more, President Bush, where did his family get a good deal of their wealth? (Here's a hint, for generations his relatives have not been pushing for alternative fuel sources). Oh well, I guess the only way to get ahead in this country is "lie, cheat and steal" from the working class who have no choice but to buy gasoline.

Sure looks like there is something wrong with the system.