Posted on 01/18/2011 2:57:11 PM PST by NRG1973
I lived/worked through the inflationary period of the 1970's and remember that, although there was indeed a lot of inflation, wages went up close to the same rate as prices...so consumers didn't really lose any purchasing power. However, we now live in a world of >9.0% unemployment (>16% if you include enderemployment) and our economy is service based so I don't think the purchasing power of employees is going to be "in step' with price increases this time. That means consumers will have to make choices (as Swonk says in the article)...and that won't be good for the economy.
I can tell you there were a LOT more jobs in the local sunday paper this week than in previous weeks. Seems like things might pick up a bit.
Also, how come OPEC is not a major topic these days? They were in the news the other day, basically taking the Goodfellas approach to setting the price/brl (F--k you, pay me). Shouldn't the energy independence advocates on the right be making big hay about stuff like that? Or are they truly owned by the Saudis?
Pretty much. This is the pattern for the next several years until alternative fuel sources are price-competitive on a $/joule basis with gasoline without eating into the food supply. Just hope that policy makers don't keep trying to use textbook economics to fight the downturn.
I can tell you there were a LOT more jobs in the local sunday paper this week than in previous weeks. Seems like things might pick up a bit.
Also, how come OPEC is not a major topic these days? They were in the news the other day, basically taking the Goodfellas approach to setting the price/brl (F--k you, pay me). Shouldn't the energy independence advocates on the right be making big hay about stuff like that? Or are they truly owned by the Saudis?
In most of the past recessions, the US economy was manufacturing based and when the economy started to recover prices did go up, but employment and wages went up soon thereafter so consumers maintained their purchasing power. I don't think thats going to happen this time, because our economy is service based and the service industry has implemented productivity improvements over the last 20 years. So, I don't look for them to hire more people or feel compelled to give out big pay raises to the emplyees they have.
In regards to OPEC and the news, the Mainstream Media is trying to convince us that we are in a wonderful recovery and that all is well...so they don't want to report bad news. Bad news might have a negative affect on 0bama's re-election chances. I have serious doubts if that is going to work though because consumers eventually realize that they don't have as much cash on hand and eventually the recovery will peter out.
Nat gas is roughly $1.30 a gallon if people did the conversion. The problem is fewer retail delivery sites. We are #1 in nat gas right now thanks to hor drilling in the past 5 years.
It will not matter that much because the entire govt and financial system now is totally corrupt and going broke.
In my experience, rising gas and oil prices gets Americans in a BAD mood right quick.
Much of the result of the ever increasing gas prices is the value of the dollar. China and Russia no longer trade in dollars. The Chinese - now King of the mountain - are already suggesting trashing the dollar for the Yuan as Global Currency. There is a glut of oil on the world market and much of the US oil is out of bounds because of government’s outright banning or overly burdensome rules and regulations. Every mentionable alternate energy source which is already heavily subsidized is much more expensive than oil. Wait till we have to buy oil with Yuan.
Who said reporters can't do math?? :rolleyes:
When gasoline was 3.25/gal in NY in December, it was an extra 10 dollars per fillup from this summer, up 0.25/gal. Gas is now 3.50 a month later so that will be an additional 20/fillup.
In 2008, the rise in price started in the winter and peaked in the Fall just before the election. I always suspected George soros and his cartel buddies were running up the price to affect the election, especially when you could see the tankers full (riding low) on oil sitting off the Arthur Kills. Now I am not sure who is pushing the prices but I know if Obama said we need to drill now in Anwar and the Gulf, the price per barrel would drop $20 but that fantasy will never be.
I too remember the 70’s (both after the Yom Kipur war and then again thanks to Jimmy Carter’s energy policies/politics) waiting an hour in line for 8 gals and didnt care what it cost (here take my wallet), just so you could get to work for the next few days. I hear Archie and Edith screeching “Those were the days”
All done with malice aforethought by the Marxists in the administration and their able assistants in the MSM!
I heard that dollar talk the last time gas spiked to nearly $4. Was nonsense then and still is now. It’s mostly Aramco/oil companies playing the game and squeezing the goose for all they can.
Who controls the white hut? They bought it for $700 million? Our troops are being killed in two micky mouse cluster******* faux “wars” like penny aracade bears in a shooting gallery or fish in a barrel just to amuse their king, the royal family who finances al qeada and islam.
This has become a low intensity far more mindless Vietnam to bankrupt America and slowly kill our troops. “Fighting” a war in islamic countries when your “leader” is a muslim? It is a joke. Don’t call me unpatriotic because I support our troops more than the corrupt islamic regime in DC.
Who controls or heavily influences the 6 TV networks which own 95% of the TV channels? Those “Goodfellas” you refer to.
The American public enables it with their TV viewership. Tha masses have no clue what is going on. They worry about ball games and reality TV shows.
Your TV obsession reminds me of Loughner.. I can imagine you shooting one up someday with your ridiculous over-the-top rants.
Get help.
Thats right, especially when higher oil prices leads to higher food prices.
Exactly! Oil price recovery carries with it the seeds of its own price destruction.
If we were smart as a nation, we'd stop futzing around with corn/ethanol and go to algael biofuels.
Power diesels are nice little engines.
I tend to think the issue isn’t lack of smarts; I tend to think it’s corruption.
Wait ‘til gas hits $4 or $5 A gallon and a pound of hamburger is $7.
We started combining our trips to the grocery store, paying bills, etc. back when the prices went up so much the first time a few years ago to keep from having to buy extra fuel and we still do.
It’s bad enough we are being hit with the increase in the price of oil in the form of higher groceries and electricity costs. Not gonna give em one cent more than I have to.
Another thing I noticed at work is all the companies that placed a “fuel surcharge” on their invoices back then never changed them when the prices went back down.
Sarah’s fault.
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