Skip to comments.Fall in Oil Prices Won’t End Soon: Pro
Posted on 06/25/2012 12:56:51 AM PDT by Uncle Slayton
The increase in demand for oil from emerging countries is not enough to counteract the fall in demand from established economies, Alejandro Barbajosa, oil markets specialist at Argus Media told CNBC.
Oil prices are decisively lower than three months ago and Brent Crude [LCOCV1 90.39 -0.59 (-0.65%) ] fell to below $90 per barrel last Thursday, its lowest level in eighteen months.
(Excerpt) Read more at cnbc.com ...
The fall in oil prises is for the November election. They will rise right after it is over.
Actually that’s not true, factories are busy, lots of places are busy... many companies are sitting on cash, the issue is they AREN’T HIRING.
Why aren’t they hiring? Mostly because the current administration, and the democratic congress that was in power until 2010 introduced so much uncertainty to the market that they aren’t willing to hire unless they have NO OTHER CHOICE.
Would you hire someone if you weren’t sure what exactly it was going to cost you??? Not if you didn’t have to.. or if you could get hit with some retroactive tax? or you don’t know what is coming next? Nope.
The other reason is efficiency, because we have created so much efficiency in most manufacturing in the states, demand uptick doesn’t equate to mass hirings like it used to.
However the single biggest issue is “UNCERTAINTY”.. companies will not hire if they don’t know what is coming next, and Obama and Pelosi and Reid introduced so much uncertainty into the system that no one is going to hire anyone unless they absolutely have to.
Europe is depressing the greater macro system, but its incompetent and anti business government that has been the main culprit in supressing hiring.
Interesting. I sure know a lot of older people getting hips.
As a kid I remember people being upset when Canadian coins were given out as change at stores because it was worth less to unsuspecting customers.
Notice the Food Share of Disposable Income goes from 13 3/4%
down to 9 1/2%, which is a 30% drop.
“The fall in oil prises is for the November election. They will rise right after it is over.”
Well of course, we all know that Obama has connections with the OPEC ministers, the world’s oil companies, George Soros, the oil speculators and Ahmadinejad and they are doing things to bring down the price of oil during the worst economy in the history of our nation.
no sense over killing on prep
People who think that Obama has some secret power to intentionally control gas prices are exactly as goofy as the people who thought Bush had that power.
Who do you think sent him to college and got him in the White House?
“Who do you think sent him to college and got him in the White House?”
The OPEC ministers, the worlds oil companies, George Soros, the Kenyan government, the USSR, the Hawaiians, the CPUSA, the Muslim Brotherhood, the Sodomites, the Indonesians, the oil speculators, the 19th Amendment, the Voting Rights Act and Ahmadinejad.
What part of “Not entirely true if you use a CPI unencumbered by a series of ‘enhancements’ that suppress inflation. “ did you not understand?
The charts you posted do not account for the manipulation of the CPI.
What’s “over prepping”?
Whats over prepping?
6 months to a year
I’m good for Dad, me & my cat, for 3-4mos of water/food/tp etc. Plus 15 firearms, 8 calibers, 350k rounds. That should be enough. Yes?
My charts have nothing to do with the CPI, and are not affected by it, manipulated or not.
They simply point to what percent of a families income was spent to buy food in 1969, and again what percentage went to buy food in 2009. How many dollars that amounted to doesn’t matter.
The key to understanding the chart I posted, and the article I linked to, is that they are measuring PERCENTAGE of income, not dollars that are somehow ‘adjusted’ to account for inflation.
By way of extreme example, and I’m just guessing here, in Biblical times people probably spent well over 60% of their income (or work effort) on food, in prehistoric times, over 90%.
Russia is rumored to need north of $115 a barrel to make ends meet; and, the Saudis can subsist for a while below $80 with $700B+ tucked away. The Russian network in the Saudi neighborhood has them worried as much as Iran’s maneuvers so “two birds”.
My point is not to deny the trend of your charts which is why I used the words ‘not entirely accurate’.
However the manipulation of the CPI affects them; it has not been applied to all sectors of the economy equally. In fact one of the tools used to manipulate the CPI is intervention analysis; if the cost of a particular part of the economy is deemed to be rising ‘too rapidly’ a formula is applied to suppress inflation.
Your reply brings up a question, do you understand what ‘percentage’ means?
For example; if someone asked you what percentage of your income do you spend on fueling your vehicle, assuming you had the numbers at hand, would you be able to come up with that fraction? Would you know what that fraction means to your standard of living?
I think the answer is no, you probably couldn’t, and if you did, you wouldn’t understand the significance of that fraction when compared to the fraction you spent 5 years ago.
That lack of understanding of fractions permeates your responses.
By way of example, Use the CPI approach to the fractions I used in my examples of the amounts spent during Biblical times for food and also to the amount spent during Pre-historic times. What numbers do you come up with?
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