Monday, August 18, 2008

OPEC "2008 Has Been Berry, Berry Good To Us"

With apologies to Sammy Sosa, the news today that total OPEC revenues in 2008 will surpass total US Tax Receipts for the first time in since 1980. Just 5 years ago tax receipts were running at roughly 4 times total OPEC revenue. 2008's OPEC revenue of $1.2 Trillion is roughly 6 years of oil revenue at 2003 prices. The geopolitical ramifications of this sort of global wealth transfer are easy to see (check out Burj Dubai - Started in Sept 2004 and to be finished in Sept 2008).

The Organization of Petroleum Exporting Countries' export revenue will surpass what the U.S. raised last year in individual income taxes. The cartel's revenue may reach $1.174 trillion this year, edging U.S. personal income tax receipts for the first time since 1980, when gasoline shortages and the Iranian hostage crisis transfixed the country.

Source: Econopic

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