Say’s?
Energy drives the world’s economies. If we could suddenly acquire unlimited free energy the world’s economies would explode. The discovery of oil as an energy source is why we expanded so fast in the first place.
Cheaper oil, indeed will not
“boost” the world economy. The fall in oil is, in part, a reflection of the economic slowdown. It is part of it. Separating out the components and considering them singly, cheaper oil, at best, keeps the economy from contracting as fast as it would were oil not cheaper.
Sounds like another variation on “Drill, drill, drill? We can’t drill our way out of this.”
we expect GDP growth of just under 3% each year in 2015 and 2016.”
Which is NEGATIVE, any GDP that is not greater than inflation(deficit spending) is negative. we are running 6% now.
Just trying to be logical here....I’d think stable oil prices would be best for the world economy.
Justice Department probing Moody’s for mortgage deal grades: WSJ
http://www.reuters.com/article/2015/02/01/us-moody-s-investigation-idUSKBN0L51T820150201
The problem is the use of “global”.
By definition, there are economies that are net sellers of oil and economies that are net buyers of oil.
A halving of the price of oil helps the latter and damages the former, but globally it’s close to a zero sum, at least in the first year.
But as far as US and European and Japanese growth? It’s a HUUUGE net positive for each. Halliburton is not a good proxy for the global economy, by the way.
Cheaper oil may not boast global growth, I don’t know, but this I do know, it sure is helping me get through this winter in Maine.
Cheaper oil means more money in consumer’s pockets that will boost GDP. Technically you have to consider the marginal propensity to save ...money can be either spent or saved, but additional spending for consumer goods should boost GDP
In the US, any boost from cheaper oil is being offset by the sky rocketing cost of obamacare!
Supply and demand.....for Govt. Pensions, that is. More extortions, more Greeky global paper makers by the Enronites.
Hey, alex, you’ve posted quite a few articles, but you never take part in the discussion on your threads. Are you out there?