Quote:
Originally Posted by Gaolee
Gasoline was pushing $5/gallon around here when I put a new engine in the old van. Dumb? Yeah, probably.
The price of oil is doing what commodity prices do- collapse when demand collapses. When the economy recovers, and it will, the price of oil will rise with it. If this is a long, deep, nasty recession worldwide, the price of oil could go well below $25/barrel. If the economy comes roaring back, the price of oil could climb back over $100 fairly quickly.
We discount Keynesian economics, but the price of oil is behaving almost like the government counterbalance Keynes suggests. It spikes and kills the economy when things overheat, then it tanks when the economy tanks. High prices and disruptions were a big part of why we had such a nasty time in the 1970s, and then we got away with economic irresponsibility after about 1983, in part because the price of oil didn't spike with respect to the economic cycles. There are plenty of other more important reasons for why the economy overheated like it did and then crashed like it did, but oil prices were spiking at about the time the whole mess came to a head. Low oil prices are going to be part of what bails us out, no matter who's in power or what policies are in place.
Something to think about- if we weren't so dependent upon oil, we would be insulated from these fluctuations and our personal and collective behavior would be the reason for economic cycles.
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You just do not get it, the least of the worlds worries right now is how cheap gasoline is. People are going to be having trouble affording out current cheap gas, so raising them really accomplishes nothing except setting people back.
again, lead by example, untell you chest pounding libs man up and go all green, well, zip it.
Feel Free to Participate in this thread I started a couple of weeks ago
DO you use alternative Energy?