To: thackney
"The recoverable reserves from a typical field rises with the price as well."
I think I know where we're missing each other here. That doesn't represent a movement along the existing supply curve. That represents a leftward shift of the supply curve, itself. That typically results in a new equilibrium point of a higher price, but the same quantity still being supplied.
"I would like to see your same chart ploted in tons of gold. It only proves that some commodities rise faster than the average market. Not really a surprise.
I'll go a step further. You can plot the same chart in terms of virtually any fungible commodity over the past 12-15 years, and while the amplitude will change and the peaks may move by a few months left or right, the basic shape of the graph does not. What it means is that the only way we can continue to consume at current levels is by taking on increasing amounts of debt, because our actual economic output - indexed to anything real - has been in almost nonstop contraction over that period.
46 posted on
12/05/2011 12:34:45 PM PST by
CowboyJay
(Generic Republican - 2012. He's the only 'electable' candidate.)
To: CowboyJay
The recoverable reserves from a typical field rises with the price as well.”
I think I know where we’re missing each other here. That doesn’t represent a movement along the existing supply curve. That represents a leftward shift of the supply curve, itself. That typically results in a new equilibrium point of a higher price, but the same quantity still being supplied.
- - - - - - - - - - -
It also means the predicted decline from the old fields, and the necessary new sources needed to make that difference up, declines.
47 posted on
12/05/2011 12:39:16 PM PST by
thackney
(life is fragile, handle with prayer)
To: CowboyJay
What it means is that the only way we can continue to consume I would also point out it means our GDP is become less a function of commodities and more a function of services and increasing value from the original commodity.
48 posted on
12/05/2011 12:51:17 PM PST by
thackney
(life is fragile, handle with prayer)
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