Wow! Oil is now less than half price,gas is well under it's 4.00 a gallon or more,you can afford to get to work now..life is great again,right? Maybe not so fast....6 months ago,many factorie's were reviewing the shipping cost's of part's made oversea's,and with the price of fuel,shipping,all that,decided it MIGHT be worth looking at bringing those job's back home!
Not so fast...Now that oil and cost's are reduced,your job won't come home soon.I'll admit,I am NOT a financial genius,by any mean's,but this is a business that I have experience in,so let me ramble.
Let me explain a few thing's.I'm a machinist for a large corporation,that make's money buying small companie's,and reducing cost's..Great idea on paper.So,you buy a reasonably profitable company,so how do you reduce cost? LOWER WAGE'S! We bought a company in the midwest,moved it to Arizona,hired questionable employee's,and made a profit.That's the american way!But,as on Wall Street,greed set in...we moved the plant into Mexico,of course!
Before we get into any immigration issue's,let me inform you about a few thing's.What is the minimum wage in our area?7 or 8 buck's an hour?No prob..what is the minimum wage in Mexico??? 7.50 a DAY,plus lunch!Yes,the company has to buy you lunch!You wonder why they come here? These people are here to improve they're live's,not to take your job.So,what stop's the corporate beancounter's from moving the factory to China for 0.75 cent's a day???? Nothing,beside the cost of shipping!
So,cheap oil cost's a lot of job's,but,why is oil cheap now???
Easy! OPEC know's that high fuel price's drive up inflation,and reduce's the sale's of oil.If price's are high,demand goes down,they make less,drive the rest of the world into a recession,at least,and they lose money!!!Pretty simple,right???
So,to make money on fuel,they reduce the price to increase demand.Have you noticed that Tesla Motor's has almost shut down production of electric car's,Chrysler is closing it's hybrid line?Oil is cheap,they don't need them now....sigh....
You need to realize how you are being manipulated,either way.If you spend less on fuel,you can spend more at Wally mart,right?Either way,your money is going out the door.Even if you try to "buy american",chance's are it's going to China or the middle east,or Mexico.
Ignore the stock market,as it's being manipulated by greed and speculation.Depending on your age,it's a great time,or a nightmare.Don't try to out guess the market,just ride it out.We'll have a year,at least,of merger's and buyout's,so ride it out,don't panic.Personally,I'm going heavy into precious metal,mainly silver.But,keep cash on hand,fill your pantry,plant a garden,and hope for the best.
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