No soup for you

[sl6886]

Excited about the “mother of all gas bidding wars?” Yep, I’m in that camp too

But the horror of our government confiscating money (rent)due to landlords, followed by a Supreme Court opinion that said it was illegal, but only because Congress didn’t approve it, should make all property owners nervous. The theory is that there’s more users of natural gas than producers/investors, and “fairness” dictates that the producers should not be rewarded with profits as a result of gouging consumers. Therefore, your carefully pre-positioning and over-weighted allocation to oil/nat.gas producers with the hopes of capturing capital gains and dividends could be at risk this winter if joe Biden and the Dems are threatened by the same market forces you hope to see.

Yes, we want high prices because we agree with Dan’s logic, higher prices validates our decisions, it makes us more wealthy, and it should force a market solution. So the workings of the free market will be tested yet again this winter when consumers need a “break” and if you read below how Spain’s government responds to this crisis, it’s an all to easy road map for joe and Kamala to follow.

A portion of an article from zero hedge:

Pedro Sánchez, Spain's prime minister, addressed the nation on Monday night to minimize political damage from the hyperinflationary rise in power prices. He said taxes on electricity would be significantly reduced, and energy companies would be taxed on their "extraordinary profits" and "redirected to consumers."
"We have made a firm commitment that all citizens will pay the same electricity bill [this year] as in 2018," Sánchez said, adding that energy companies' high profits are "not acceptable."
The emergency measures would reduce government revenues for 2021 by around 1.4 billion euros, he said, and 650 million euros will be taken from energy companies' profits and used to assist households. The new package is expected to be approved.

At the risk of being to pessimistic, I think there’s a better than 50/50 chance heading into next years election cycle that the White House attacks oil/gas profits. In the words of the “Godfather” Anthony corleone, “every time I thought I was out, they pull me back in.” In the name of fairness, those of us positioned to win could be like Oliver holding his bowl and asking Joe for “more, sir”

The real estate rent confiscation was and is a big deal and the politicians all to easily arrived at a solution through executive confiscation. Gavin Newsom wins in a landslide? These people are just getting warmed up and no one is standing up for the free market. Don’t be surprised if the soup nazis put their hands on your natural gas winnings and say “no soup for you.”

[dan_s]

Washington would be wise to let market forces solve the natural gas supply problem, but the word "wise" and Washington can't be used in the same sentence. Putting something like Jimmy Carter's Windfall Profit Tax on upstream companies will just delay the supply response and the taxes will be passed on to consumers.

[Fraser921]

>and energy companies would be taxed on their "extraordinary profits" and "redirected to consumers."

what did i tell you

[CreativeEquity]

Thanks to the socialists a gallon of gasoline today in Caracas costs 8 cents usd but almost all of the filling stations are closed, and the few that are open have lines that extend for miles and miles.

The US can subsidize natural gas prices by taxing producers but the decline in supply will result in rationing and shortages. Also the free govt handouts are not helping. Why worry about my energy consumption when I can just rely on "pandemic assistance" (aka govt bribes) to pay my bills.