If venezuela has an oil shortage, why do they sell fuel for less than 20 cents a gallon?

http://money.cnn.com/pf/features/lis...ces/price.html

 

oil politics. do a google on venezuela and china

 

All,

Knowledge is key, but how important is it to really understand what you know?

I ask this, is todays news (below) ... or ?

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By Doug Palmer WASHINGTON, Jan 12 [2006] (Reuters) - The U.S. trade deficit narrowed more than expected in November to $64.2 billion as shipments of aircraft, cars and other capital goods propelled exports to a new record and lower oil prices helped trim imports, a government report showed on Thursday.

The monthly trade gap fell 5.8 percent from the record set in October and was significantly below Wall Street's median forecast of $66.25 billion. October's record deficit was trimmed slightly to $68.1 billion from an initially reported $68.9 billion gap.

Separate reports showed new claims for jobless benefits rose less than expected last week, while import prices declined unexpectedly in December.

The November trade deficit was still the third highest on record -- behind the tallies for October and September -- and confirmed a new record annual trade deficit, with one month of data yet to come in 2005. The gap for the first 11 months of the year totaled $661.8 billion, surpassing the record of $617.6 billion set in 2004, the Commerce Department said.

The dollar strengthened against the euro and the yen in trading after the report, while bond prices trimmed gains.

"The improvement in the trade gap is always welcome but the continued high level is always a concern. Strong exports (are) a confirming sign that growth is picking up in the rest of the world," said Alan Gayle, a managing director at Trusco Capital Management in Atlanta.

"In general, the twin deficits (trade and federal) will be an ongoing source of volatility in the dollar and interest rates," Gayle said.

U.S. exports of goods and services increased 1.8 percent to a record $109.3 billion. Exports of both capital goods and consumer goods set records in November. Analysts had expected strong aircraft exports, after Boeing reported commercial orders had tripled to a new record in 2005.

Oil import prices, which had spiked in the wake of Hurricane Katrina in late August, declined further in November to $52.16 per barrel. The volume of crude oil imports increased in November, but the volume of all petroleum-product imports -- which also includes butane and propane -- fell from an unexpectedly strong surge in October.

Both factors helped trim imports to $173.5 billion, down 1.1 percent from the record set in October but still the second highest ever. U.S. imports of auto and auto parts set a record in November, as did imports of services. Imports of advanced technology products, which have grown rapidly in recent years, also set a record.

Meanwhile, the politically sensitive trade deficit with China narrowed nearly 10 percent in November to $18.5 billion, after rising for seven consecutive months. U.S. exports to China were mostly unchanged at $3.9 billion, while imports fell 8.4 percent to $22.4 billion.

A Labor Department report with more up-to-date information showed U.S. import prices fell unexpectedly 0.2 percent in December as the price of imported petroleum declined for the third straight month.

A second Labor Department report showed the number of U.S. workers making new claims for unemployment benefits rose 17,000 last week, slightly less than analysts had expected.

(Additional reporting by Alister Bull)

© Reuters 2006. All Rights Reserved.


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My take: We export $4billion/month to China, China exports over $22billion/month to the U.S. The situation is much worse than I personally would like - and this modest 'improvement' just reminds me of how bad it really is. My only comfort is that for a few weeks things didn't get much worse which to me is just lipstick on a pig. The news is .

 

excellent article biker, though this is getting a little off the topic, sometimes i think i am the only person who sees a decrease in a negative trade deficit or less new unemployeement claims than expected as still bad news.

lets have a postive trade and people getting off unemployment instead

to the best of my knowledge, the unemployment rate is counted by those filing claims, if you are no longer eligible, do you count anymore?

this can be considered on topic because how many of those jobs were lost when a walmart came to a town and how much of that trade deficit is caused by walmart strong arming their vendors out of the country to cut costs????

a comedian once "joked" walmart giving back to a community is like picking someone on the street and beating them senseless, and while your stomping on his throat, saying " its ok, because i am going to pay for 2% of your medical bills, i'm a good guy" lol i thought that was funny since i drive through the empty town around a walmart. place was a nice little town, and now it looks like white trash, slum heaven.... we give opinions here, and some can disagree, but i only go by what is fact for my own life and my community. cities i have been to seem to fare better with them around, but i'm sure other small towns look the same and it is sad to see.

 

I guess Minnesota isnt the only place upset with walmart not paying health benifits.

http://www.mercurynews.com/mld/mercu...s/13622322.htm
Maryland's bold new law!
The state's Legislature on Thursday passed a law that directs firms with more than 10,000 employees to spend at least 8 percent of their payrolls on employee health benefits. The law targeted Wal-Mart, the world's largest retailer, whose low pay and scant benefits have drawn widespread criticism.

 

How many companies will not move to the state because of this law? How many will limit expansion in the state to avoid the mandatory percentage? How many will spend their capital in other states? How many new jobs will not happen because of this law? This is a bad law aimed at one company.
Dono

 

IBeam...

Couldn't have summed it up better myself!

I hope someday we don't live to regret shopping at WalMart...I know there are negatives too...but as long as that's where my $$ goes farthest, that's where I'm shopping! Why should we help some local retailer get rich charging ridiculously high prices when we can get it at Wally World for 1/3 of the price (in the instance of jeans)???

Scott

I'm guessing Kmart is never packed...because if it's like the one in my town, their prices are higher than WalMart's, so people go to WalMart instead.

You (whether you realize it or not) just hit the nail squarely on the head as to why so many folks bash Walmart...they're at the TOP of their game...just like Microsoft, the other company people love to bash/trash...

Walmart wasn't always on top...someday Home Depot and Target might be...then our bashing/trashing attention will turn to them.

Actually, I believe Home Depot is already TOPS in their game...why aren't we bashing them as we (many Americans, excluding myself) are doing WalMart?

Could it be because Home Depot is considered the "darling" of home improvement? Could it be because the media hasn't reared its ugly head against Home Depot yet? Is it just a matter of time until they do?

I agree...Walmart is not killing the American dream...people are killing their own American dream. Them and the lawmakers who sit smugly in Washington, never having to worry about how far a SS check will get you until the next one arrives. They live in their own little wealthy world...unconcerned until re-election time. OOPS!!! Starting to sound political...my bad.

RIGHT ON!!!

What??? What happened to the principal of supply and demand???

If we go to buy a new truck and the price is too high...should we be forced to buy it anyway???

Why should Walmart have to pay more for something than they are willing to pay for it???

I don't see the logic in that...

 

Its not that much higher and you get in and out plus I will pay to not be a sardine in a can or 1 of the 2 dogs fighting for the same bone.We had some ruff fights in walmart with these end of the year sales.I mean the morning after christmas looked like a third world country fighting for the drops of goods.Sad!!

 

Grant12...

I hear ya! No way was I about to visit WalMart the day after Christmas...that's just asking for a miserable time!

I did venture into Office Depot to scope out some bargains on black Friday though...the parking lot didn't look that busy (at 7am), so I took a chance and got some good deals on DVD+/-R's and a portable MP3 player...then I skeedaddled on home to let the others fight it out later in the day!

 

Thats funny I hit office depot the same way to get dad a laptop case so he could keep it safe in his truck got a good deal to.THse things are darn expensive for a good one.

 

Walmart is only able to do what they do because they own 25% of the US retail market. In fact they are the 7th largest retailer in the world. Because of that they are able to dictate prices regardless of the cost of the item being bought.

If I make a item and the price of my raw materials rises I pass this cost up the chain. Walmart makes you eat it. This is what happened to Rubbermaid.

 

Home Depot may be large but there is no way they even come close to having the effect of Walmart. Home Depot has to compete with Lowes. And Lowes beats Home Depot in many areas. Also both of those stores really only cater to the DIYer. Professional and the serious DIYer still use traditional lumber yards due to better quality materials. In addition if say I want to buy a Pella door, the price is no different wheather I buy it from Home Depot or The Pella Store.

The real difference is that Home Depot has it under one roof and that appeals to many people. I have yet to see a lumber yard, plumbing or hardware store go out of business because of Home Depot. The DIYer was always only a same segment of that market.

 

Actually, they are the LARGEST retailer in the WORLD...not the 7th - that's Kroger.

Acccording to http://www.fastcompany.com/magazine/77/walmart.html

"Wal-Mart is not just the world's largest retailer. It's the world's largest company--bigger than ExxonMobil, General Motors, and General Electric. The scale can be hard to absorb. Wal-Mart sold $244.5 billion worth of goods last year. It sells in three months what number-two retailer Home Depot sells in a year..."

I still don't see (at least at this point in time) how WalMart can MAKE any potential supplier "eat" anything...that supplier can say NO...we're not letting you have it for that. Then WalMart will find another supplier. Let's not confuse a supplier's reluctance to not be solicited by WalMart with WalMart "making them eat it". While it may seem as though WalMart can MAKE the supplier sell it for less...it's still really up to the supplier.

Note that the quote above says Home Depot is the #2 Retailer...I'm assuming that means "in the world". So Home Depot is not that much different from WalMart and I'm sure Home Depot has been the cause of many "mom & pop" small-town hardware store closures.

And...apparently, Home Depot has no real reason to be concerned about Lowes...at least for now.
Scott

 

This is happening in all US manufacturing I see it every day working in a machine shop.
Buyers wont take a price increase they will shop the part.
We have to figgure out how to make the part faster cheaper to keep the work.

China is gonna get whats coming to them !
http://www.msnbc.msn.com/id/10838942/

Chinese staff sing during the opening ceremony for the newly-opened Wal-Mart supercenter in Shanghai last July. Wal-Mart operates 56 stores in the country.

 

My error on the size.

If Walmart won't buy it for what it cost to make it plus some profit then what outlet does the manufaturer have. They just lost 25% in sales because of there size.

Concerning Home Depot closing down mom & pop hardware stores, that is not my experience. As I said the pro's don't shop there much. For instance if I need a building package to put up a house I won't go to Home Depot. At least 1/3 of a 2x4 bundle is scrape. If anything what Home Depot has done is tap into and grow the DIYers of the country. Plumbing, electrical, laying tile, etc is just not that hard.

In fact in my wifes home town a Home Depot went up a little over a year ago as a test. I went into this store and was amazed to find no one in it. The three local yards have not seen a loss of business at all.