High oil prices: blessing in disguise

Discussion in 'Commodity Futures' started by peilthetraveler, Jun 20, 2005.

  1. Everyone is so afraid of what their energy bill/cost to fill at gas station/blah blah blah...but look at the bright side. All those cheap labor textile factories in china making those inexpenisve shirts/pants or whatever wont be so cheap to ship here anymore...therefore there will be a boom in our now practically defunct textile industry. Big companies like walmat will be crushed by those high fuel costs, in turn letting the little guy compete for business because he will buy from local vendors and save on fuel costs. The local vendors also get a big increase in volume since everyone will buy from the little guy now. The little guy now doubles his income and can easily afford the higher fuel costs. Everybody wins except the goliaths of the world. The bigger they are, the harder they fall. And since the goliaths of america all seem to get their cheap crap from overseas, the little guy will get his product from americans and help the economy with new jobs. I know some of you may come up with the theory that walmart will adapt quickly and buy from americans and deep discounts and still put the the little guy out of business...but since walmart has everything shipped to a central location in the US, their fuel costs are still goign to be high...only way they could compete would be for each walmart to individually buy from each local vendor in each town and they sure wont get a deep discount like they do now for that. I say let oil soar to 100 dollars a barrell and put the american textile industry back on the map.

    Please let me know what you think of my ramblings and if you see any flaws in it. :)
  2. This is barely worth a reply, but the market is slow and I'm bored, so here goes. Energy costs are a worldwide problem, domestic textile companies (do we even have any?) will pay higher energy costs along with their foreign competitors. It's the cheap labor that caused the fall of the domestic textile industry. That has not changed. So don't expect to go to Walmart and pick-up a towel or a shirt with a label saying made in America any time soon.
  3. That is pure propaganda ratboy and has nothing to do with oils price move. I was able to determine it was propaganda after the first few paragraphs and then I looked to see who wrote the article to see if the author had some credibility, the NY times has called this guy the most famous renegade marine officers since oliver north. The fact that aljazeera is the one that printed the article destroys alot of credibility right away even though they know he is such a wacko they say his views are his own and not of aljazeeras. This guy scott ritter is just stirring up B.S. to basically sell whatever book/documentary he is selling this year. Hes got 3 books and one documentary so far that i could find. This guy is nothing more than a book promoter.
  4. at least you neocons are consistent. Ritter was the neocon poster boy till he went against the grain and told the truth about saddam and the lies about iraq's wmd's. everything he predicted has come to fruition. LOL LOL LOL they even tried to frame him with some sex crime charge that was easily proved a set up.

    the mere fact that you cite the NY times as credible still has me chuckling. bottom line, the neocons and the MS media want this war bad and the big oil money knows it.

    just curious, it doesn't sound like you knew who ritter was before your post, do you realize he was one of the main UN inspectors and held in very high esteem by the neocons?
  5. Its the shipping that is where the cost is going to affect other countries, not the labor. For instance...lets say i want 20,000 shirts made. In america it will cost me 10 bucks an hour to hire someone to make them and in S.E. asia it will cost me 20 cents an hour. Both workers make 50 shirts an hour so in 400 hours they are both finished. Now labor only cost 80 bucks in S.E. asia and 4000 bucks in america. But how much does it cost me to ship 20,000 shirts across town...probably could do it for about 200-300 bucks and it will be there in a day. How much to ship from bengladesh? As of todays prices about 4,000 dollars in a 20 foot foot container and you might be talking weeks. So its pretty neck and neck right now, but of course factory/electricity/materials push the price up in america right now so that in asia they can do it alot cheaper. But now imagine that oil goes up and it costs 8,000 dollars to ship those same shirts. America just became the cheaper place to make textiles...American factories would also save on the import tax...so there you have it....oil goes up...more jobs for americans.
  6. I agree and also, most if not all of the factories needed to produce textiles are gone as well as the equipment needed in them. So, IMO, finding anyone willing to make this investment to get it going again will be near impossible.

  7. Yes I realize he was a UN inspector. And there are plenty of people through out history that switch sides in the middle. Like Benedict Arnold.

    Truth is this ritter guy cant sell alot of books by saying bush was right, now can he? The guy hadnt inspected weapons since 1998...5 years before the war and anything can happen in 5 years. We havent found bin-laden either...that doesnt mean he doesnt exist.
  8. Goliaths like Exxon Mobil will keep profiting from this situation. They are the big winners.
    #10     Jun 20, 2005