<DrumBeat: August 14, 2006The Oil DrumDrumBeat: August 15, 2006>

67 comments on The life of an oil reservoir

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Kevembuangga on August 15, 2006 - 8:37am Permalink | Subthread | Parent | Comments top
Without change on taxation, why would anyone move away from JIT?

Even discounting ANY taxation inventory has a running cost : the capital used (warehouse+stock proper) x interest rates.
Among the best examples that it is the very logic of markets/efficiency/profits which runs counter the safeguarding of "mission critical" operations.
Some kind of regulation is therefore in order, but that does not mean GOVERNMENTAL regulation.
The only safe regulations would be cultural/societal regulations, but establishing those takes TIME.
Any idea for speeding up such changes?

BTW, I know I am "banned" but to emphasize the sillyness of this you may notice that I was the first to publish the link to Kurt Cobb's article without anybody noticing.
Did I say morons?
(Yeah! I am still awkward, got 42 points)

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eric blair on August 15, 2006 - 9:46am Permalink | Subthread | Parent | Comments top
Even discounting ANY taxation inventory has a running cost : the capital used (warehouse+stock proper) x interest rates.

VS the cost of being without.

Taxation just makes sure you let someone else hold the inventory bag.  

The only safe regulations would be cultural/societal regulations, but establishing those takes TIME.
Any idea for speeding up such changes?

Oh, how about a change in the artifical regulation which favors the largest merchants like the tax code?

sillyness of this you may notice that I was the first to publish the link to Kurt Cobb's article without anybody noticing.

You want a medal or just a chest to pin it on?

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Kevembuangga on August 15, 2006 - 2:10pm Permalink | Subthread | Parent | Comments top
Taxation just makes sure you let someone else hold the inventory bag.

By this do you mean that the taxation "incentive" results in someone else up the supply chain to bear the cost of inventory so that it makes no difference overall?
This is wrong in all cases, with "taxation incentive" or just the running cost of capital, because :

1) Being subject to the same "incentives" suppliers will have the same policy of reducing inventory.

2) Even is for some reason (dumbness or technical constraints) they do not reduce their inventory they have no reason to INCREASE it.
Therefore the portion of YOUR inventory that you dropped off by JIT is still subtracted from the grand total of all RESERVES along the supply chain.

The "total slack" of the whole chain at the consumer end is decreased.

Yeah! Inventory is doubleplusungood, well known...

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eric blair on August 15, 2006 - 4:05pm Permalink | Subthread | Parent | Comments top
At Monday August 14, 2006 at 10:11 AM EST
http://www.theoildrum.com/story/2006/8/14/9102/35436#11
the link to Is just-in-time nearly out of time? by Kurt Cobb
was posted

At Monday August 14, 2006 at 11:18 AM EST
http://www.theoildrum.com/comments/2006/8/13/232547/321/32#32
was posted with a link to the same material.

So when you said "you may notice that I was the first to publish the link to Kurt Cobb's article " what point were you trying to make?

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Kevembuangga on August 15, 2006 - 5:23pm Permalink | Subthread | Parent | Comments top
You are making a diversion on the main argument (JIT desirable or not) by using Stratagem XXV on a minor point.

It's getting tiresome isn't it?
Not only am I a sucker but I am patient.

However, there is more to the point!
If you brought in this topic yourself:

Will the just-in-time religion which swept the world in the 1990s survive such a dynamic?

(so long as the tax code punishes firms for having stock on hand, yes)

It seems this was only to argue against taxation, as you repeated in this thread.
So your biases are beginning to show more clearly.
Am I wrong?

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eric blair on August 15, 2006 - 5:52pm Permalink | Subthread | Parent | Comments top
Am I wrong?

Yes, you are wrong.   Feel better now that you have the affermation and attention seeking you want so badly?

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Kevembuangga on August 16, 2006 - 4:01am Permalink | Subthread | Parent | Comments top
Yes, you are wrong.

So you are DENYING that you are spitting out bullshit in favor of lower corporate taxation and, as a general policy of yours, trying to deviously support the interests of the wealthy and "business as usual" at the expense of survival of mankind and earth current ecology.

Could you back up this gratuitous "affirmation"?

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eric blair on August 16, 2006 - 4:42am Permalink | Subthread | Parent | Comments top
So you are DENYING that you are spitting out bullshit in favor of lower corporate taxation and, as a general policy of yours, trying to deviously support the interests of the wealthy and "business as usual" at the expense of survival of mankind and earth current ecology.

Not only are you a stalker, but you are a poor one.   Not actually READING what is posted.

My, my, my.

The tax law exists to benefit large corporations.

Let me repeat that, because you might not understand.

The tax law exists to benefit large corporations.

Large corporations can buy a large number of items and move them through the market chain.  If I wish to have built a plastic mold and make lids similar to the tattler lids, I bet I can undercut the $13 per dozen price easy.  But, because I do not have a large corporations supply chain, I'm stuck with 4,183,000 lids at the end of the 1st year.  As the cost of energy goes up, the remaining lids have FAR more value, not to mention increased demand of home canning lids.  Which would be a fine thing (the building is paid for, the storage space is not all that great), but the taxes on inventory kills me over time.   And the arms length rules prevent me from dropping the $250k on making the lids, then selling the unsold lids for $10 at the end of the year to myself.  Or any of my relatives.

But you go right ahead and think that I'm all about "lower corporate taxation" because that is what gets you to post again and keep your attention seeking behavior engaged.   If your attention is hear that means you are not misbehaving in meatspace, and humanity is well served.

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