Wednesday, October 10, 2012

Monopolies, Reality, OPEC and the FTC

It is interesting the OPEC Nations and the cartel, which affects the quality of our daily lives, personal success, the number of people who can enter our middle class, and all of our businesses and industries including your job. In our country we have rules about monopolies that we enforce on every large super heavy weight business in every industry. A recommended read would be the book on Rockefeller. If you have already read that book then you understand the remaining points and why we bring up the importance of flow and we are discussing it and comparing it to OPEC. Rockefeller was beholden to the market place and the supply and demand issues of the day. If his price got too far out of line, then others would jump into the game. OPEC constantly screws with our supply, much worse than the anti-trust issues of yester year.
If it is okay today for OPEC to play these games then certainly Rockefeller did nothing wrong, as a matter of fact, I have never heard of such an important concept such as Anti-Trust, which has so little reality based thinking and has undergone so few changes in the past 200 years. With all the ridiculous patch work within is regulations it throws out the entire idea of capitalism and competition. The laws are vague, utterly preposterous and reward the weak. The notion that bigness is automatically evil, dangerous to the welfare of free men or bad for the society as a whole makes no sense in a free market economy. The attack on Gate's Microsoft, by the FTC, after the people choose them and bought their products and continually wait until the next windows upgrade is beyond me. People vote with their dollar, they chose a company that fulfills their desires, purchase products and services from that company and this is bad? It appears that the FTC only attacks the visionaries and market winners. Well it must be something like that. Competitors who lose in the market place (Sand Box) go crying to momma or the liberal teacher of academia and liberal media?

Then at the same time when companies want to merge to share costs and use the efficiencies to get maximum use of the economies of scale they are forced into a box of questionable divestitures, all of which end up making the merger less of a good deal as it would have been and all these costs are past onto the consumer who would have had the greatest benefits in the long run. Yes that is right the very consumer that the FTC is sworn to protect. I give this example due to all the Tiger Marts, which closed after the Chevron Texaco merger. All the jobs lost and the hardship of customers to find a place to fuel up causing longer lines and therefore more demand and therefore higher prices, check the statistics if you disagree. Great so now you have high fuel prices, long lines and you are to thank the FTC for protecting you? From what, they caused it.
The theory that Monopolies, which started small and grew big due to the consumer choosing them over the competition is a testament of a strong free market system with tough competition forcing the best athlete forward for the gold metal and is merely survival of the fittest. It is about the most natural thing mankind has created. If growing big is evil then and anti-trust laws are to be enforced upon bigness then the entire government, by the people and for the people should be immediately shut down, because it was voted for by us, we chose it over other forms of government and it is friggin huge, talk about out of control with regulations. This alone would make it ready for anti-trust lawsuits, with it's finger on the flow of everything and in the colon fudge cake of everyone, every company and obviously up there own. You are looking for a retraction, doubtful if you would get one from someone who studies the flow and the cogs in the wheels of commerce, no apologies here, I am absolutely serious because a complete overhaul is needed. It is a complete joke, only it is NOT funny, because we are talking about the future of the greatest nation in the world and the rest of the planet's future depends on our example to follow in the next time one following this present period. Let's look at this from a distance.
When our Oil Companies here in the US wish to merge to create the economies of scale to compete, they go through 18 months of regulatory review and every congressman wants to go up to the podium to tell us what they think (actually why we should keep voting for them). Then these same oil companies are told they must divest themselves of certain pipelines, retail outlets, subsidiaries, trading rooms, etc. The consumer gets a better price when these larger companies can compete with the Cartels and can deliver for less. We force them to go offshore and own interests in the cartels to stay competitive.
Our stock market, your mother's 401K and father's pension do better when subsequent market sectors are more efficient and profitable. Especially those involving large industry and when the flow of fuel has profitable years and decades, steady growth in the market helps the strength of our nation. It is interesting that we allow foreign competitors more latitude than our own companies and then we create a hostile environment in the regulatory bureaucracy and cause our companies to move jobs, factories, refineries, etc to those same foreign lands. One might have to ask exactly whose team are we on? Let's face it, the growth of a business from small to large is a testament of commitment and hard work by the team running that company and their value to the consumer and my friends that is merely survival of the fittest and best prepared to take advantage of opportunities to serve the desires of the customers. Just like the republic or Democracy government voted into power by the people is a sign of the strength, trust and will of the people.
John D Rockefeller was a great man and delivered fuel to the people and enabled us to move the ball forward as we modernized our civilization.