So there's no such thing as inflation, huh?

Remember, huge increases in home prices are to be cheered by the media.

Oil, however, must be fought with vigilance...

The author stayed at a Holiday inn last night.

savage henry: Remember, huge increases in home prices are to be cheered by the media.

Oil, however, must be fought with vigilance...

because one is an investment and the other isn't. you don't know a lot about accounting or finances, do you?

Just burn your damn Escalade and keep it off my roads so we can see where the hell we're going.

It'll settle around $75/bl in the next year or two.

Gas hit $5 a gallon yesterday in Alaska.Sure you want to keep that big ass truck or SUV?

I'm guessing he was one of those people who, two years ago, said it was impossible for oil to ever hit $100 a barrel for exactly the same reasons.

I am waiting for the next headline to say, "Oil prices rise on news oil prices may drop."

jimmyhaha: So there's no such thing as inflation, huh?

There's no way the current price of oil can be chalked up entirely to inflation.

I'm not saying he will be right, but his argument has merit.

obvious tag missing?

10 italicized words. 2 in a single paragraph.

Ads for SUVs and vans on the right side.

Headline in caps lock.

I submit that Mr. Alan Reynolds is full of shiat.

burndtdan: savage henry: Remember, huge increases in home prices are to be cheered by the media.
Oil, however, must be fought with vigilance...
because one is an investment and the other isn't. you don't know a lot about accounting or finances, do you?

So which one do you think is an investment?

/knows a lot about accounting and finances
//bets you don't

I always wondered what people who don't understand how oil is refined thought about the price of oil.

See, it's funny because he's an idiot with zero understanding of what he's talking about.

Good news everyone! Oil demand will drop because we're entering a global recession!

albanynyguy: Gas hit $5 a gallon yesterday in Alaska.Sure you want to keep that big ass truck or SUV?

you mean in the state where most people actually NEED a big ass truck?

Supply/Demand as a means of keeping a "free market" economy in check is hardly applicable when you are talking about a commodity with over 40+% of its sources forming an Oligarchy/Cartel to control it. Jeez, even Adam Smith recognized that trying to explain pricing in terms of supply and demand when talking about Monopolies and Oligarchies was an exercise in futility.

As the head of OPEC said a couple of months back: "Oil prices, there is a common understanding that has nothing to do with supply and demand..." - Abdalla Salem el-Badri, Secretary-General of OPEC.

Thus, why would prices drop when those who control a significant portion of it can continue to charge what they want for it?

The oil cartels are trying to find the sweet spot between making a paltry million dollars a day and pushing the price so high non-oil fuel sources become popular, thus putting them out of business.

Alacritous: The author stayed at a Holiday inn last night.

no wonder he failed. he neglected to stay at the Holiday Inn
Express

wejash: Just burn your damn Escalade and keep it off my roads so we can see where the hell we're going.

i completely agree.

Most everyone in here knows that the Iraq War is primarily responsible for our high gas prices- weakened dollar, instability in Middle East, perception by OPEC that this a war against Muslims ect...

Why is this fact never reported or mentioned in our media? Instead we get people like this trying to shove sunshine up our butts. For example, "There is no economic slowdown" or "the housing market is obviously recovering".

/I secretly hope that some conservatives listen to this man and actually believe him and suffer accordingly.

Chariset: The oil cartels are trying to find the sweet spot between making a paltry million dollars a day and pushing the price so high non-oil fuel sources become popular, thus putting them out of business.

In the 70's and 80's, they could kill the alternative fuels industry overnight by dumping oil on the market and dropping the price to $20 a barrel. That isn't an option anymore, so biofuels should be safe for the foreseeable future. I hope.

/Send more taxpayer dollars

In Euros the price on a barrel of oil has doubled in the last three years. In dollars, it has tripled. The price on a barrel isn't going to miraculously pop unless theres a sudden surge in the value of the dollar.

I choose to believe him. Mostly because I'm broke and denial will allow me to spend more of my money on beer.

Juansmith
There's no way the current price of oil can be chalked up entirely to inflation.

I'm not saying he will be right, but his argument has merit.

I'm not saying high oil prices are caused by inflation, I'm saying they'll cause inflation. High oil prices eventually equal rising consumer price index, which leads to inflation.

chrischris451: Why is this fact never reported or mentioned in our media? Instead we get people like this trying to shove sunshine up our butts. For example, "There is no economic slowdown" or "the housing market is obviously recovering".

Yesterday on CNN, Elaine Chao was desperately trying to convince us that things weren't bad because we weren't technically in a recession. I almost threw a bottle of whiskey through the TV. (I was behind the bar at work, by the way - I don't normally have throwin' whiskeys at hand.)

TFA: Oil prices won't go higher because I can't believe they will go higher!

Rascal King: I choose to believe him. Mostly because I'm broke and denial will allow me to spend more of my money on beer.

Denial... not just a river in Egypt.

/left yourself wide open for that one!

Don't sell your Bear Stearns stock!!

Pay no attention to the man behind the curtain.

They've been predicting a huge drop in the price of oil since oil hit the $50 mark a couple years back.

Juansmith: I'm not saying he will be right, but his argument has merit.

No, it doesn't. This guy is a stupid douche. A really stupid douche. Oil prices have risen and will continue to rise because we are currently pumping as much of it as humanly possible out of the ground - our supply has 'peaked' yet global demand for oil, especially in southeast Asia, India, Brazil, and parts of Africa is skyrocketing.

Anyone with a 4th grade grasp of economics knows that stagnant supply that has no hope of being increased coupled with exponentially rising demand that shows no sign of flagging results in prices increasing ad infinitum.

The guy who wrote that article is a stupid douche.

Chariset: The oil cartels are trying to find the sweet spot between making a paltry million dollars a day and pushing the price so high non-oil fuel sources become popular, thus putting them out of business.

That does not make sense.

"If Chewbacca lived on Endor instead of Kashyyk, you must aquit."

Or, better yet, "I'm going to breath easier by smoking one more cigarette per day every day for the rest of my life."

These are the oil companies we're talking about, not the underpants gnomes. They're don't even take a shiat without a plan.

I've said this before, I'll say it again.

Right now, there is more than enough supply to keep the world happy and running. If there are sudden spikes like yesterday's increase of $10, it's because of speculation. And, by "right now", I mean today, next week, next year.

What about this long-term increase? It's also speculation. The energy crunch, while not here right now, is coming. When you don't include natural-gas liquids in oil production, you'll see that crude oil production hasn't risen for several years. Why is this important? Because crude oil is what we need to make jet fuel, gasoline, and diesel. At some point, demand for crude will outstrip supply. That is probably going to happen in the next ten years.

Any increase in crude-oil output from OPEC will only offset declines we're seeing in non-OPEC states like Mexico and Russia. So, what we're also seeing right now is long-term speculation. Essentially hording: fund managers, investment houses, banks, betting long term in oil by buying it up. Sure, inflation will eat into some of the gains, but, because of the flat supply and growing demand, it's value will shoot through the roof and leave inflation in the dust. It's a good bet.

I guess my point is that these really recent spikes are perfect to try and short the market with in the short term. Just realize that the floor is probably around $80 and will only increase if you're looking long term.

lexslamman: coupled with exponentially rising demand

Well, demand in this case CAN be limited by price. There are people who can't afford $4+/gallon gas and so will use less. In turn prices will drop somewhat, although clearly they're never getting back down to what we'd expect in the past.

He's just being overly optimistic about the degree of the drop.

hmm msnbc is doing an Obama documentary right now

Anyone mention that the guy who wrote the article is a stupid douche?



/no really...the guy who wrote the article is a stupid douche who stupidly douches with utterly unadulterated douch-an-igans.

If oil prices go down, banks will fail like Goldman Sachs and National City, oil companies will fail, and millions of people will be out of work. Recession. If the demand in the United States is falling, then oil companies need to shut refineries off and lower production to keep prices high. We need to either keep oil prices stagnant or higher to prevent a fail everywhere. Still China's economy will be going into a recession immidately following the Closing Ceremonies of the Olympics just like the Dotcom bust following Y2K because they overaccumulated so much so fast.

Beside it's official that we're going to war with Iran and the Bush team is passing resolutions forcing Obama to keep us there. Obama is a big threat to the economy, oil prices.

Cathedralmaster: They've been predicting a huge drop in the price of oil since oil hit the $50 mark a couple years back.



THIS.

(hotlinked for your clicking pleasure)

FTFA: "The world economy can't handle current energy prices... Which in turn means that oil prices WILL fall."

Let me try...

"My boss will fire me if I'm late again, which means traffic WILL be better tomorrow morning."

If you believe gas is going to drop like that, you should roll over to your local auto dealer and buy every truck on the lot. Because they have a shiatLOAD of them no one else wants. You'll make a killing. If you're right.

loser_death_spiral: So which one do you think is an investment?

Oh this I'm dying to hear.

/come on burndtdan, dazzle us with your grasp of finances

GoRedSoxGo
Yesterday on CNN, Elaine Chao was desperately trying to convince us that things weren't bad because we weren't technically in a recession. I almost threw a bottle of whiskey through the TV. (I was behind the bar at work, by the way - I don't normally have throwin' whiskeys at hand.)

I agree, that's not how I abuse whiskey. But on your other point, it is ironic that someone on TV who is making a low six-figure salary can tell us common folk what and how to feel. My guess is that she never misses a meal and gets to do all the expensive drugs too.

Edsel: lexslamman: coupled with exponentially rising demand

Well, demand in this case CAN be limited by price. There are people who can't afford $4+/gallon gas and so will use less. In turn prices will drop somewhat, although clearly they're never getting back down to what we'd expect in the past.

He's just being overly optimistic about the degree of the drop.

Yeah. I subscribe to the peak theory. When the drop happens, everybody had better look out below...

It is kind of ironic that there are so many of us still fighting for global free trade when we are approaching the point where global trade as we know it will be utterly infeasible. Heck, the corporate business model as we know it will be obsolete - as will our individual and community settlement patterns. Good times!

lexslamman: Chariset: The oil cartels are trying to find the sweet spot between making a paltry million dollars a day and pushing the price so high non-oil fuel sources become popular, thus putting them out of business.

That does not make sense.

"If Chewbacca lived on Endor instead of Kashyyk, you must aquit."

Or, better yet, "I'm going to breath easier by smoking one more cigarette per day every day for the rest of my life."

These are the oil companies we're talking about, not the underpants gnomes. They're don't even take a shiat without a plan.

That makes no sense whatsoever. Its as if you responded to a different post than the one you quoted.

Mentat:

In the 70's and 80's, they could kill the alternative fuels industry overnight by dumping oil on the market and dropping the price to $20 a barrel. That isn't an option anymore, so biofuels should be safe for the foreseeable future. I hope.

/Send more taxpayer dollars

Alternative fuels aren't going to save us. We need an inexpensive, powerful energy source first.

Nothing really compares to the potency, portability, and price of petroleum.

And throwing gobs of money at it won't work. We've been investing billions into cancer research for years, and Patrick Swayze is still dying from stomach cancer!

The oil industry is embracing what the pharmaceutical industry has know for years: if it's a product we can't avoid using, we'll pay whatever they ask.

Massa Damnata: Anyone mention that the guy who wrote the article is a stupid douche?



/no really...the guy who wrote the article is a stupid douche who stupidly douches with utterly unadulterated douch-an-igans.

Possibly from Stupiddoucheistan?

IMHO -- and I am most def. not an economist... The key difference between now and the other times referenced in the article = the drastic rise of the worlds demand (China, India, 3rd world countries).

savage henry: loser_death_spiral: So which one do you think is an investment?

Oh this I'm dying to hear.

/come on burndtdan, dazzle us with your grasp of finances

The house is clearly an investment. Is someone really going to claim that it isn't? I'm assuming no one would claim that the consumers use of petroleum is an investment.

Question for any chemists out there (or fodder for snarky farkers):

How do you produce synthetic oil, and how much does it cost? Didn't German make synthetic oil during WWII because it had no access to the normal commercial outlets? Whatever the price of synthetic oil, that would be the absolute ceiling for a barrel of oil.

We should still pursue alternative energies -- I'm a big fan of fuel cells -- but when is it more economical to manufacture oil instead of drill for it?