To: Thermalseeker
As long as the Fed keeps too many dollar in circulation, and as long as oil is traded in dollars, and as long as the Fed keeps lowering interest rates trying to avoid inflation, fuel prices will remain high.
The speculators have ignored and your scenario ignores the law of supply and demand That can't go on indefinitely. At some point supplies become so large that producing more gas will only exacerbate the situation. Producers will be forced to sell increasing supplies asap. That can only be accomplished by reducing prices considerably.
9 posted on
03/08/2008 4:19:36 AM PST by
Man50D
(Fair Tax, you earn it, you keep it!)
To: Man50D
The speculators have ignored and your scenario ignores the law of supply and demand Actually, the law of supply and demand is not ignored in this scenario. OPEC is controlling enough of the worldwide supply of crude to keep the prices up.....that is the sole function of OPEC, after all......remember 1973?
18 posted on
03/08/2008 4:41:54 AM PST by
Thermalseeker
(Silence is not always a Sign of Wisdom, but Babbling is ever a Mark of Folly. - B. Franklin)
To: Man50D
the Fed keeps lowering interest rates trying to avoid inflation,I'm no economist but I think lowering interest rates actually encourages inflation.
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