My first Google Adsense cheque

My first Google Adsense cheque has arrived in the mail. A grand total of SGD $156.34 based on accumulated earnings from end-Jan 2008 when I started monetizing my blog to the end of Mar 2008 when the payout was calculated. Based on USD $116.30 earnings at that point, the USD/SGD currency exchange rate used would work out to 1.34428. It's funny how I have been watching and blogging on the falling dollar, and how now my very first Google cheque has been hit by this. But of course I have been expecting this, and I also expect that the US dollar has further to fall.

Vagaries of the forex markets aside, I'd suppose $116.30 for 2 months isn't too bad, seeing how I initially set out to recoup my hosting costs of $12.85 per month. Or to look at it another way, the couple of dollars or so every day now helps to cover my tea-break expenses (a cup of tea or coffee and a bun at the local coffeeshop). My tea-break costs are hedged, as are my petrol bills with the monthly dividends of a couple hundred dollars or so coming in from my energy income trusts.

Talking about coffee, once the cheque clears, I will be owing shooperman a cup of coffee (as promised earlier) - he was the one who suggested to me to try to make some money from my blog. Though it's a modest start, I can say it has done far better than my initial expectations. Thank you, readers of lowem.log for your support.

Comments:

About the energy income trusts, investors need to be aware that we are entering a period of resource nationalism. If the Canadian government decides to curb or even halt oil exports in order to preserve oil wealth for future generations (to use the Saudi's King's words), your energy trusts share prices and dividends will crash.

Can something like this happen? Of course. Back in Oct 2006, the Canadian government decided to renege on a promise not to tax the energy income trusts. Their share prices then dropped as much as 20% to 30%.

The Canadians have every right to protect their national interests first. If I were Canadian, I wouldn't want my government to be selling oil for short-term profits and in the process ruin the environment with tar sands mining, and leaving nothing for future generations to transition to a post-peak world.

When peak oil reality hits home, Canadians will begin to question the logic of exporting their oil sands.

Posted by TM on April 29, 2008 at 07:40 AM SGT #

1. These are different issues - the Saudi's and Russians are practising resource nationalization, while the Canadian government is trying to grab a piece of the (taxation) action.

2. I bought in only some time after the Oct 2006 taxation announcement (after the 20-30% blow-up as you mentioned). So while many of the original investors are down on their money, I am in positive territory. The taxation issue is over-hyped and this is why the income trusts are selling at a discount. Sure there are some politics going on, and one of the results is that new corporate tax cuts will offset the impact of the increased income trust taxation. They are a bargain and King Hubbert's colleague Kenneth Deffeyes himself recommends them.

3. Under the NAFTA agreement the Canadians are bound to supply the Americans most of their fossil fuel exports. Canadian officials have been quoted as saying they would be most happy to ship their oil to China if they were not bound to NAFTA.

4. I don't buy Canadian oil sands companies or oil sands income trusts.

Posted by lowem on April 29, 2008 at 11:08 AM SGT #

I agree with you that they are different issues. My point is that governments will not hesitate to do whatever they like to protect and promote their own interests, and this includes backing down on trade agreements. I'm not saying that this will happen, only that investors should be wary of such government intrusions.

Pardon my ignorance, I was not aware of other income trusts. What other energy income trusts are there besides those in Canada, if you don't mind sharing?

Posted by TM on April 29, 2008 at 11:13 AM SGT #

Conventional energy trusts. Light or medium oil and conventional natural gas (non-CBM, non-shale).

Posted by lowem on April 29, 2008 at 12:16 PM SGT #