Tell Me if Any of This makes Sense to You

The LA Times may understand the current Situation more than Our Governmental leadership. The article says that current Oil prices induce an equivalent to a 9% Tariff on East Asian Goods shipped to American shores, which could increase to a 15% Tariff if the price of Oil reaches $200/barrel. Is it time for a combination Wind/Diesel powered Ship, where Docking and Exit from Harbors are under Machine-power, but Ocean-transfer is completed under Sail? This is currently not a salient option, as Sail requires almost 5 times the Crew with Sailing Times significantly longer. The Idea could be improved with Sails which also generated Solar power in addition to Wind power. Seems far-fetched, does it not? The Idea does not seem as crazy, when Ship refills cost $3.8 million Now, and are bound to go up in Price; consider that Sail Crews would cost about $20,000/Crew member per Trip, and require no more than 20 in number.

I will not even attempt to claim I understand all of Tyler Cowen’s Thoughts, but feel that qualified Students should go through this stuff. I will attach to Tyler’s insistence that a long-term bet could be made even when Futures extend only for 3 years; why would One desire to remain a Speculator utilizing only Futures, when a realizable Investment opportunity has appeared? Arnold Kling is whistling in a huge Warehouse which is totally dependent upon Fundamentals, and even lack of Capitalization works out to be a form of Hoarding. Bryan Caplan is right about his dedication to the traditional Movements of Commodity pricing, but should be cognizant that those Expectations are dependent upon a consistency of Resource Recovery Costs; Commodity prices will not reduce, if Recovery Costs have become marginally more expensive. I would not comment on Mark Thoma, or Holbrook Working’s efforts to define the convenience yield, except to say relatively no one has ever pinned down the Concept, or its impact; it reminds Me of the Tooth Fairy. I do not know what Paul Krugman has against the Concept of Speculators, forever claiming that Speculation has absolutely nothing to do with Pricing; why then do People put so much Money into Speculation? lgl