May be dumb but not stupid

[OregonMaule]

When we were in Mexico in March avgas was in the $3.50 a gallon range. I don't think Mexico imports any gas. I see they have now jumped on the rip off band wagon.

From Baja Bush Pilots

Mexico just informed us that the price for Avgas has just been increased.

In following up and checking with several AOEs, we find the following:

MMSF: US$6.20 per gallon

MMCN: US$5.92 per gallon

MMLT: US$5.19 per gallon

The above does not reflect any taxes



Jack @ BBP

[180Marty]

That's what a monopoly does for you. Still can't figure out you anti-alternative people.

Check this out. http://cantwell.senate.gov/news/record.cfm?id=332839

[dirtstrip]

I might be both.
Several years ago a family member bought Caterpillar stock, which is a publicly traded company. He has no plans to buy a Caterpillar but he thought the stock was cheap and would be higher some time in the future. He wanted an investment and bought the price that was offered for the stock. Today the price is 8-10 times higher. Is he a speculator? If he is then are all individuals purchasing publicly traded stocks, in order to have some investment other than their home and job, speculators that drive the market? Is the problem with those who have no intent to own the commodity which they buy or is the problem that so many do it at once and with such large volume they propel the market direction by their actions. It is possible to regulate the volume part influencing the market, but to eliminate the speculator altogether is to take away those willing to take the risk for others in the production end who cannot stand to take that risk themselves, so a producer sells his future risk at a price and the speculator buys it for a time, holding it and betting the producer is wrong. For every buyer in the market, there must be a seller, right? How does the entire publicly traded capital market system work if you eliminate speculation? Does this apply to price discovery in oil futures?
Dumb and Dummer

[180Marty]

I have to admit to being a speculator also. I have sold corn on the CBOT for a price and had it go down, gotten out and sold the same bushel a time or two more when the price went back up. A commodities broker says we don't want to get rid of speculation since it is good for higher prices if you guess right. To get back to Rob's post, though, when 100LL is your only option, you set yourself up for rip off prices. Get another fuel option, and competition should help lower prices. I know that with politics and insurance, it is tough to make changes.

[Vick]

when 100LL is your only option, you set yourself up for rip off prices. Get another fuel option, and competition should help lower prices.

Umm, many of us did have an alternative with 87 octane mogas. But then some jack holes lobbied to mandate that it be polluted with low grade moonshine and the 100LL monopoly was sealed. So if by get another fuel option you mean get ethanol out of pump gas I'm completely in agreement with you. If you mean consider burning ethanol in certificated planes to bolster the false demand for an inferior product then good luck.

[willyb]

Before computers investing in the stock market was a bit different.It was more long term not multiple trades in minutes.A lot like a big electronic casino now with automated buy/sell programs etc.It's more about how much I can make for me today than it is investing.Trouble is all the gambling payouts come out of the pockets of everyone when your betting on things people have to have.Kinda like gambling with someone elses grocery money.

Bill

[180Marty]

Vick, can you imagine how much 100LL would cost in the Dominican Republic? Another thing to think about---ethanol is 115 octane R plus M rating. If you mixed 84 sub octane and about 55% ethanol, you'd have 100 no lead. Should work good and range wouldn't be reduced much.

In the DR we have enabled a Green Airport, Flight School (DR part 141) and flying Club.

Land donated by a local business man, paving by airport authority, infrastructure by grants, ethanol by local rum distiller.

The enablement was done by forming a member driven and run not for profit with the aim of promoting sustainable aviation for GA. Members elect trustees vote on the rules etc, we can supply expertise, leadership, experience of over 30Years test facilities and the know how and contacts to get STC's.

[180Marty]

Some more thoughts on speculation. Up until now, the corn run up has been mostly speculation in my opinion. Lots of Wall Street investors buying corn. Now we actually have some poor planting weather in parts of the corn belt and we may actually have a short crop. If that happens, will the price be able to continue up or will the camels back be broken. I could see the gov't stepping in and shutting the ethanol plants down and saying no more exporting ethanol to Europe and Brazil. Another thing that is kind of funny and actually is helping ethanol is the no corn fructose scam in food. Because the cane sugar guys are hood winking the public on that, cane sugar is in big demand and corn sugar isn't. Brazil has switched to more sugar and now imports some ethanol.

[Nosedragger]

We just jumped from $4.15 to $5.60. The price is set according to bulk cost when the tanker delivers, we ran on a tanker-load for two years.

It wouldn't surprise me that the Mexicans are capitalizing on the oil runup. It also wouldn't surprise me if that price was negotiable.

If times get tough, the gummint won't be able to subsidize sh!tty so called green gas and people will EAT corn as it should be.

[Headoutdaplane]

I had a buddy that would say to the gas guys in Mexico, "I have a credit card, or, I have (insert half the cost of the avgas) in cash" they would always take the cash. He figured it out after having so much trouble using his credit cards to pay for avgas, he had so much trouble one time that he paid cash one day and watched it disappear into the attendants pocket. Of course it is illegal and unethical