PeakTrader.com

[administrator]

PeakTrader:

I explained before how raising the minimum wage, up to $15 an hour, is a pro-growth policy. However, without reducing regulations and taxes, the effect on growth, and employment, will be small.

For example, on the production side, we need to make it easier for small businesses to succeed, including removing and reducing regulations that prevent start-ups, slow growth, take-up some proportion of a business’s time, or raise production costs.

On the consumption side, less regulation will reduce prices, the cost of living, and raise real wages and compensation.

It should be noted, there are people who earned over $100,000 a year, went into debt to start a business, and work 80 hours a week, while other people receive a $1,000 check each month, spend it all within a week on “sex, drugs, and rock-’n-roll,” and then panhandle the rest of the month.

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Jerry:

PT, just what regulations and taxes are you proposing we reduce or eliminate? Reducing taxes will necessitate reducing government spending or accepting an even greater increasing debt. Where will you cut?

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PeakTrader:

Jerry, show me all the taxes, regulations, and spending, and I’ll show you where to cut to achieve a real economic recovery and strong economic expansion.

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Coberly, I gave an appropriate response to a ridiculous question, i.e. how would I overhaul the tangled tax system, enormous federal budget, and vast federal regulations, which no one can explain in just a few paragraphs.

Your opinion doesn’t mean anything, since you’ve shown you don’t understand the interrelationships and interactions of economic variables. You even implied it yourself it’s way over your head.

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PeakTrader:

There are three unusual factors about natural gas:

1. The price differences are huge, e.g. twice as high in Europe and three times higher in Japan.
2. It has to be converted into liquefied natural gas for export, which seems to be expensive.
3. It’s a “residual good” for many oil producers, which implies supply is relatively inelastic, i.e. a higher price may not increase supply much.

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“Costs of liquefaction can range from $1.50 to $2.00 per mcf…Shipping costs can vary from $0.30 to $0.90 per mcf.

Regasification…converting LNG from a liquid back to a gas so that it can be moved through the domestic natural gas pipeline transportation network…can add $0.30 per mcf to the cost of LNG. Thermal energy (heat) is required to regasify the LNG.

Total costs of liquefaction, shipping and regasification could add up to $2.10 per mcf on the low end to $3.20 per mcf on the high end. Add to this the base cost of the natural gas commodity, currently around $3.00 per mcf in the US. Bringing the total cost of delivering US produced LNG to Europe or Asia to $5.00 to $6.00 per mcf.

To put this in perspective, natural gas in the UK is currently trading around $8.00 per mcf and in excess of $15.00 per mcf in Japan.”

http://extension.psu.edu/natural-resources/natural-gas/news/2012/02/understanding-the-role-of-liquefied-natural-gas-part-1

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