Posted on 12/20/2014 8:06:02 PM PST by NKP_Vet
Uh, NO!
When the price of oil falls dramatically, that is a sign that economic activity is slowing down.
Only sometimes. Recognize that both supply and demand are involved.
But something is happening here
And you don’t know what it is
Do you, Mister Jones ?
Russia has faked it's own death before, too.
I remember $.25 gas. Life was good.
I agree with the points presented here. Little else makes sense in these oil price drops other than lack of demand, which is being concealed by the Ministry of ‘Information’. Our economy is in shambles; the final straw has just not been laid on its back yet.
The writer needs to read his history. Oil spiked dramatically in the spring of 2008, and the price shock “burst the housing bubble” and triggered the crash. The spike in oil prices was its own bubble, and the reduced economic activity caused by the crash burst the oil price bubble, and it’s price collapsed as well.
Not much in common with today.
“a sign that economic activity is slowing down”
That’s the key.
Demand rules.
Low growth = low demand.
High taxes = low demand.
This is not supply and demand that is driving the price this low.... it is geo-political.
I should add “imho” to my previous. And that I think the nominal premise is interesting. But to complete the picture, iinm, a severe credit crunch would have to follow, and I don’t see that happening. imho.
Oooh, “prophesy”watch blog. No way could these guys be fricking idiots, right.
But the Phillies won the World Series that year, so there's really no correlation since the Giants won this year.
It is the most basic of economic theories that the more supply the lower the cost. Due to the United States increasing production and Saudi Arabia not lowering production the total amount of oil available on the open market is higher than it has been as such being a commodity its price per barrel has lowered.
Exactly. It is a glaring oversight to not mention that huge price spike that preceded the crash.
I think people are missing the (tin hat sounding) real thing behind this:
It is a vast conspiracy by the huge, established international oil producers to drive out the small ‘upstart’ American companies that have been booming the last few years in the Bakken and other new, and the newly productive by fracking fields in the US.
When those companies are put out of business, oil will zoom back to what it was, and likely higher.
I remember my dad handing the gas attendant 2 bucks and saying, "Fill-er up."
“I remember $.25 gas. Life was good.”
i’ll 2 dollars, regular. and can you check the oil.
I remember $0.18 gas. Wasn’t so long ago. 1970.
What crap. The Saudis would not have waited this long if so.
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