| Publisher's Notes
We live in interesting times.
Since 2000 we’ve had an Internet boom and bust, a housing boom and bust, and now a run up in gas prices which is a boom that should bust.
It is easy to be disheartened but Americans have faced tough challenges and always pulled together as a nation. We will succeed again.
The number one problem right now is the price of oil. Gas is predicted to be $7 a gallon by 2010. We the American people won't stand for it. We invented the light bulb; we will invent an alternative for gas. Experts agree that there are three main causes for the increase.
- Supply and demand: China and India have 2 billion new members of the middle class and they want to drive cars.
- The weakness of the dollar versus other currencies: If you vacation in Europe you’ll find you need about twice as many dollars to buy the same thing as five years ago.
- Speculation: Oil is priced on a trading market, just like corn or wheat on their markets. Seeing a supply / demand tightening, investors have been bidding up the price of oil futures. Pension funds and university endowments have gotten into the act.
To solve this dilemma we need to attack each of these factors.
- Drill for oil. Do it cleanly, but do it. It won’t help right away but we’ll need it in ten years, so let’s get going. The act of aggressively drilling could send a message that would lower prices fairly soon.
- Lessen demand by improving hybrid vehicles and gas mileage in all-gas vehicles. Detroit can do this. They may need help from some kind of federal program, but this is too important to wait. Do it now. This could payoff next year. And it might make the oil producers lower their prices right now.
- The Federal Reserve has to slowly tighten rates. That will help strengthen the dollar.
- The futures markets serve a necessary purpose in our economy. We don’t want to tie them down, but raising margin requirements and putting position limits have worked to squash wild swings in other markets. They can work here. A recent panel of traders and hedge fund managers testifying before Congress said the price of a barrel of oil is between 30% and 50% based on speculation. If they’re right it would immediately bring prices down to around $80 a barrel.
On a personal level, we can double up in our cars, and unload the heavy junk we tote around needlessly. Let the kids walk to school and back. Walk with them. Take the bus. Invest in solar panels. Just plain conserve.
In the meantime, be grateful for what we all have in this country. With all our challenges we still have great lives. Don’t get bogged down in negative thinking. Do what you love. Reach out to others. Work hard and play hard.
I recently came back from a spectacular cruise to Alaska (thanks to Joan Crane-Wilhoit from Four Seasons Travel). The scenery was breathtaking. It was hard for me to let go of business worries but seeing the beauty of our world helped. Look around and be appreciative of the beauty right here in the Central Valley. Take time for a weekend getaway to the coast or the Sierras. Spend time close to home in our beautiful Delta. Pamper yourself in our local restaurants. Take your friends and all go in the same car. Reward yourself and rejuvenate.
It’s important to keep perspective in tough times. We will all get through this together if we keep our eye on the future. Don’t discount the courage and brains of your fellow business people.
Signs of growth exist even in these times. In Stockton, StoneCreek Village has just had their first phase Grand Opening…with more to come soon. The new Stockton Nissan building on Hammer Lane houses an impressive inventory of fuel efficient cars and shows confidence in the future of Stockton. Papapavalos is booming in their new location. In Modesto, the World of Wheels bicycle store is doing great business. The Farmers Markets in Modesto and the Central Valley are thriving. The Stanislaus and San Joaquin Ag Reports show record results for our growers. Read about all these positive results in this issue.
Jason Harrel’s column this month proves to be a must read when considering which candidate deserves your vote. Check out Don Buck on page 8 in this issue. I love it!
Speaking of taxes, hard times make it doubly important to take advantage of tax credits for which your business qualifies. The Enterprise Zones in Stanislaus and San Joaquin counties may enable you to save thousands. In upcoming months we’ll have a two part series that tells you how to save money.
Is the Enterprise Zone working for you? Find out in upcoming months in the Central Valley Business Journal.
Happy birthday to my husband Rich. (Could it be the candles on his birthday cake that started the fires? HA! Happy birthday to you!) Despite the 105 degree weather the annual Calone law group barbeque and trap shoot was a blast!! I beat you again Dougie! What a hoot!
All of my fellow trap shooters were gratified that the Supreme Court said recently that, yes, indeed we do have the right to bear arms. The NRA now goes to court to fight San Francisco's ban on hand guns. I feel strongly that we must protect this right, which is explicitly given to us by the Second Amendment.
Happy 4th of July. Take a moment to ponder your independence and always remember we fought for it. We deserve it. Let’s keep it.
Congratulations to the newlyweds Doug and Joan Wilhoit.
– Sharon Alley Calone
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