The slippery slope of increasing oil prices.

[sarettah]

On the way to work this morning I was greeted at the gas station with a $2.25 per gallon price (I know I know all you european fuckers are like "That's nothing, you wimpy Americans...etc etc" ....) which is 10 cents more than they were yesterday.

Now, since gas in my area got over $2.00 I have been buying $20.00 at a pop instead of filling my tank as I normally would and I imagine other folks are playing that same game. Catch it on the low side, fill up..If it's high, just get enough to gfet through..

Anyway, this got me thinking of the ramifications of all this.

1. Oil goes up.

2. All industries dependent on oil have to raise their prices (this is virtually all industries that have actual tangible goods to deal with)

3. Prices go up, the consumer has to start making smarter choices in order to maintain their standard of living. They have to decide what to do without and what they are willing to spend higher amounts on.

4. For many products, sales start declining.

5. Declining sales lead to lower profits.

6. Lower profits leads to "cost cutting measures".

7. Cost cutting measures include lay offs etc.

8. More people out of work means less money circulating at the consumer level (the most important level of the moneygoround)

9. Less money circulating at the consumer level means less money being spent.

10. go back to 3, continue loop...........


How long till the current economy looks like Jimmy Carter is back in office ?

[Vick]

Originally posted by sarettah@Apr 6 2005, 12:54 PM
How long till the current economy looks like Jimmy Carter is back in office ?

Bingo

I said something to that effect here months ago


While I don't have hard stats on it I believe many families coped in the 70's by then moving to being dual income families, basically the homemaker entered the work force
Now with most families already being dual income families how do we off set the increase in the cost of living?

and the as $ sources dry up (less $ working it's way around) the prime interest rates rises killing off our booming housing market (if you don't think the USA has a booming housing market check out the rise in property values, you might have read it from me before but in less than 5 years my house more than doubled in value)

Not a pretty picture


Many here in their 20's don't remember double digit inflation and prime interest rates in the teens
It happened during the 70's, largely due to OPEC increasing the cost of oil thereby
driving spiraling inflation

[Steady]

WOW! Vick...You hit the nail on the head. I remember the 70's and double digit inflation...I purchased a home at the lowest interest rate possible, 21%.

Today you can purchase a home for just about the same price they were in the 70's. The only difference is, in the 70's they built quality homes. They had to, the interest rates were high, so builders added extras to sell there homes.

Not to stray from the subject...Which I did...I do buy gas at $20.00 a pop. We are sitting at $2.09 a gal. just down the street.

Steady "Hook-Em-Horns"

[The Other Steve]

Here in country Queensland we're paying the equivalent of $US5.20 a gallon for premium unleaded and that includes a state subsidy. In other states where there is no subsidy it's much higher.

We also had an interest rate rise last month and another one was expected this month but didn't happen.

Here when petrol prices and interest rates go up the first thing you notice is a rash of near new cars and big gas guzzling SUVs parked in driveways and in public spaces all carrying 'for sale' signs as people off load their second car or downsize to something that gets better than 25 miles to the gallon.

[Dravyk]

Gee, let's change the Constitution ...

BUSH FOR LIFE!!!






... Hmm. Perhaps I got that backwards!

[Rolo]

Oil price have been going up, because the world economy is better (more money)... now if it had gone up, because there were no more oil, then you should be scared shitless :-))

[sarettah]

Actually I am completely in favor of pumping all the oil dry. I have come to believe that that is the only way to get a serious push in this country towards alternative fuels.

[Mike AI]

Oil prices are going up do to increase demand - especially in China and India.


I know the ignorant masses and those who are still upset that Bush won re-election think prices are up because of Iraq and Halliburton - but the fact is this has been priced into the market for over a year.

NO blood for oil! HAHAHA

You liberals crack me up!!

Bush pushed for a National Energy Plan when he first took office... and the Dems shot it down. We should have been drilling in Alaska years ago. We should be securing as many natural resources we can.

The wars of the past, and certainly in the future will be over Natural Resources - Oil, Fresh Water, Fishing rights, etc.... Instead of sticking our heads in the sand, we should be preparing for the inevitable.

[sarettah]

Originally posted by Mike AI@Apr 6 2005, 03:36 PM
I know the ignorant masses and those who are still upset that Bush won re-election think prices are up because of Iraq and Halliburton - but the fact is this has been priced into the market for over a year.

I don't know about anyone else, but where did I indicate that this was a result of the administration.

The fact of the matter is that our economy is pretty much at the mercy of the energy companies. Whether it be market forces that drive the price or greed that drives the price, fact is if energy prices go up virtually all tangible goods prices rise in response and the economy ends up taking a hit.

It is the fault of the past 100 years of administrations, congresses and voters that we do not already have a readily available alternative fuel in place. Teddy Roosevelt warned about it back in 1901 or 1902. In his address to the graduating class of Harvard's engineering school (I believe..) he stated that it was going to be their job to produce an efficient alcohol running engine because the oil was going to run out.

For the century since then, each and every administration and congress has passed the buck to the next generation coming up because there is/was enough oil to get us through for now.

[Vick]

Originally posted by sarettah@Apr 6 2005, 03:31 PM
Actually I am completely in favor of pumping all the oil dry. I have come to believe that that is the only way to get a serious push in this country towards alternative fuels.

What would happened to the American standard of living during the ensuing crisis causes me great concern

However you do have a point

[The Other Steve]

The state government here in Qld has just announced that it plans on banning electric hot water systems in new homes.

Builders will either have to opt for gas, solar, or heat pumps.

I can remember when, if you lived on a farm, the wood fired stove in the kitchen also heated the hot water system - I must be getting old.

[Inabon]

Originally posted by Rolo@Apr 6 2005, 12:10 PM
Oil price have been going up, because the world economy is better (more money)... now if it had gone up, because there were no more oil, then you should be scared shitless :-))

Wrong oil the world is not doing better. Oils is going up because there is lack of production. laws of demand and offer.

don´t tell me you believe iraq is pumping 100%

venezuela is getting ready to fuck bush up the ass too and their economy is shit.

down here gas is at an all time high of 2.57 per gallon there is word that it will go up to 3 in a week. there is already talk and sales of a convertion kit where you can pump regular kitchen gas in to the car. the kit costs 500 bucks but it is being tested word says that a 5 gallon gas tank which costs 5 bucks can give you 50% more range than same amount of gasoline.

thats what they say i have to see it to believe it a friend of mine installed one i will keep you posted.

ahh and needless to say that those hybrid cars are no where to be found down here.

[Inabon]

Originally posted by Mike AI@Apr 6 2005, 12:36 PM
Oil prices are going up do to increase demand - especially in China and India.


I know the ignorant masses and those who are still upset that Bush won re-election think prices are up because of Iraq and Halliburton - but the fact is this has been priced into the market for over a year.

NO blood for oil! HAHAHA

You liberals crack me up!!

Bush pushed for a National Energy Plan when he first took office... and the Dems shot it down. We should have been drilling in Alaska years ago. We should be securing as many natural resources we can.

The wars of the past, and certainly in the future will be over Natural Resources - Oil, Fresh Water, Fishing rights, etc.... Instead of sticking our heads in the sand, we should be preparing for the inevitable.

yeah bush out of the subject we are talking about offer.

venezuela is acting stupid and iraq is not pumping less oil higher price. i really don´t see how high price increases demand.

[Inabon]

Originally posted by Vick+Apr 6 2005, 03:16 PM-->