Posted on 09/22/2008 11:09:09 AM PDT by tatown
Inflation is an unequal distribution. There’s no telling necessarily where prices will rise first once new dollars are created. Energy prices are up in general for a variety of reasons but to dismiss the weak dollar as one of them is wrong.
I’m not against drilling, in fact I’m for it (as well as a host of other things we’re not currently doing), but the root cause of our issues is a weak dollar.
Not so fast!!! There was a thread posted today where the Saudis have turned down their all out pumping from the last few months. I think that is having a much bigger impact that the dollar. Also there was another article that they need prices above $100 to be happy. The same article stated that Iran needs $147.
Before the bailout legislation is even passed, the American consumer and taxpayer begins paying the bill in the form of higher crude oil and petroleum product prices. And the bill will be presented in many other forms.
Yet gold is up less than 0.5% today....
That’s only kind of true. We are inflating an unsustainable bubble that will eventually pop regardless of whether we inflate or not. Yes if deflate now it will hurt like hell and the economy will probably go into a deep recession, but if the government stops manipulating interest rates and printing money (along with keeping taxes and spending low and deregulating the market in general), the market will correct and recover in a relatively short amount of time. The Depression was a market correction (the problem being created by the government), but it was government’s subsequent policies to “help” people that made it last for so long.
Ultimately, we need to stop inflating. In the long run deflation will be a win, though in the short term they’re both painful.
Vote every last one of them out. This is unbelievable.
Like I said, it’s an unequal spread. Gold was up $70 one day last week and now it’s got only very modest growth. Monetary policies go through the market unequally and at different rates. There are other factors too. Oil was falling for a while. Now it’s going back up. The weakened dollar doesn’t help.
Sounds like a plan to me.
“Also there was another article that they need prices above $100 to be happy. The same article stated that Iran needs $147.”
And how times change. A couple of years ago, the OPEC folks hoped for a range around $35-$40. Then after crude went to $50 and more, and then $60, a brief drop back into the low $50s had the big OPEC players very concerned that the price was dropping so low. Then in the past year or so we saw it more than double and now they just can’t get by on less than $100 per barrel.
My time frame might be a little off, but that is how the oil tick’s expectations have changed in little more than two years.
In 2006 gas was 2.25 a gallon, oh I wish for the corrupt ways of the gop I guess
The price of oil is going back up because the world sees that Pelosi’s drill bill is a joke. They all thought we were going to get serious about oil independence, but the dems have shown otherwise. One more reason to vote straight GOP on Nov 4.
Saddle up boys. Its time to get a million man posse and ride to D.C. with plenty of ammo, tar, feathers and rope.
Hmm? Let’s see. HUD, Fannie and Freddie, Dodd, Frankie Boylover, Gorelick, Raines, and on and on and on?
And how many Repubs was it that PROFITTED PERSONALLY?
So, one former GoldmanSachs guy carries all the blame?
And would the demoncrats miss an opportunity to point fingers, say on capitalism? Really?
...and a new day brings a different story with oil down $25 from it’s peak yesterday (different contract) and the dollar rallying hard.
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