Empowerment--And the Cost of It

The Shipping or Baltic Exchange enjoys a Heyday, though the nature of that expansion should worry Economists. There are an estimated 10,000 Ships on Order which will require a $350 billion payment for the Ships, a potential oversupply of Ships by 2010, a massive increase in Fuel usage (I think about 1200 gallons per Ship per Day), and a World benchmark for shipping rates that have increased 365% in under Two years; all in hopes of financing the expansion. The Whole will require vast new Port capacity, with Downtime probably estimated as about $20,000/Day per Ship waiting for Harbor. Any Economist will recognize that Trade itself is becoming far more expensive, and Freight Costs can destroy far worse than any regressive Tariff system.

The Story Today must be the jump in Oil prices. Speculation is driving the Price, as there is no Short-term threat to Oil Supply, or will the Dollar weaken much further; there being great debate about this, because We would have to sheer off major amounts of Employment which will not happen. We already running Production a very lean levels. The Jobs We are shedding are Energy-intensive labor, which is not Cost-effective under high Energy pricing; where Product benefit is not great. The Herd mentality shown by the Market remains disappointing, expressing the fact much of the Money does not study long-term trends; relying on statistical models which over-weigh Short-term Conditions (Oil Purchasers–whether actual Oil or Paper–will lose an expected 8% upon Sale of the Oil, in the face of alternative Sourcing). Speculators love volatility, but artificial injection of it can only bring grief.

Tyler Cowen created a stir through his description of libertarian heresies, as described here. I must first say that ‘descriptions’ of anything becomes the prevalence of a affluent, basically leisure Class; by the way, I agree with Tyler totally at least from what I have read. The access to Money and Time imbues Everyone with humanitarian impulse. He highlights the need for the Rule of Law, a substance necessary for Business to rise above the level of a Drug Deal. Tyler enters the dissension with his identification of ‘positive liberties’, causing some consternation in declaration that most liberties are Those of what I would call ‘Empowerment’. We want to do what We can, without restriction from Others; said Restrictions limited only to protection of physical person, Property, and Wealth. I would utilize the adage that ‘Law is Wonderful’ but lawyers are Tramp Prostitutes, as they confuse and choke efficient Law. lgl