Finally, there is enough info to break down the cost of an Apple I-Phone. It is as I always suspected. Apple could have switched production back to the US, but due to greed, it didn't. Instead of providing wealth here in the US, they gave their innovation to offshore aliens. For a long time, we all knew the cost, however marketing kept a cloud on value. There was the two year subscription deals along with other come-ons. Today, you can purchase one on sale for $800. Dear reader, Apple only spends $370 to get it into your local store. They get a great markup as well as the retail outlet. Did you ever consider that the markup is so large that it borders gouging? To put this into perspective consider your local gas station. The owner works on a very small markup. Usually, he earns just .10 cent a gallon. He has to sell many gallons to make a living. If all gas stations used the Apple formula to price gasoline and get the "Apple" margin, the price of gas would more than double. People would scream "GOUGING!" No one screams at Apple, but me. They suck!
One more tidbit on Apple. They stated that their new home speaker would not be ready for Christmas. They said it needed to be tweaked. I guess when you build it over 7,000 miles from the US, you get echoes in the system.
Sovereign Wealth
The world's largest wealth fund is in Sweden. It is worth over $!.7trillion. It just stated that their fund will no longer support oil or the companies that cater to it. This is huge. The firm holds 1.4% in every oil equity, oil fund, oil bonds and periphery companies in the world. They reported to their government and they received approval to begin to dismantle their interests in this area of energy. They did not commit to public knowledge as to where they will move their money, but speculation runs to include solar and wind power. If you were not aware Sweden is a large oil producer with many firms that assist drilling, notably offshore. They also have large transportation firms that specialize in carrying oil on water to ports all over the world. This is a big dent to OPEC. The announcement sent US firms like Exxon and Chevron down. The anti-oil meme also got a blow from its biggest supplier. Saudi Arabia's new crown prince, stated that the kingdom needs to diversify away from oil. He offered some ideas, however this puts a dent into Saudi Arabia's prior plan for an IPO for their state oil. The nation originally estimated that the issue would result in a cool $2 trillion for its coffer's. Now, it will probably take in around one trillion and that is still a lot of dinero.
When it rains, it pours
The bad news keeps coming at oil. The Keystone Pipeline reported an oil spill of 200,000 gallons. Didn't they just swear that their new pipeline would never pollute? They got our government to arrest our Native Americans who were protesting the pipeline. They knew better, but the political shills run the government. On Monday, Nebraska regulators gave approval to extend the pipeline through Nebraska. That is one sad story except it doesn't end. The danger could "leak" in many locations from the north border to the gulf coast.
Walmart
joins the anti-oil movement by announcing on Friday that they will purchase 15 new electric Tesla trucks. Walmart uses the most over-the-road haulers and this shift is big, very big. Every car maker is jumping on the clean, electric band wagon. In fact, the biggest buyer of automobiles, China is considering a phase out of fossil fuel cars in the future. All this anti-oil thinking could cause a back fire. If prices decline too much, bankruptcies will follow. Then, the world will still have demand, but no product. You do know what happens when demand outstrips supply - gouging by the survivors in the energy field.
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