looming depression : high oil prices cause?

[zzzz]

It now appears that the past depression/recession's trigger was not the financial services and housing market collapse but the price of oil which shot to $147 a barrel. Remember those $4 a gallon for gas days? All the blame was put on the derivatives and speculation on property and rightly so but the triggering event was the spike in oil prices. Oil prices are once again rising faster than the US economy and $90 a barrel is not far off. The economy is like a ship dragging an anchor and that anchor is oil!

Why is oil rising? The answer is that China is now the Worlds dominant economy in terms of being a vibrant consumer economy. China became the second largest economy in the world in size earlier this year. (http://www.nytimes.com/2010/08/16/business/global/16yuan.html?_r=1) Southeastern Asian countries are riding China's coat tails and doing quite well. China has and is investing heavily in infrastructure, something the US is failing at and this will ultimately doom the US to second class status like the Fench and British. But that is another thread.

Next year, if oil continues to rise faster than the economy, the US economy will take another dive. China's economy is expected to grow at 10%, the US 3.5%!

 

[Intense]

The price of oil rising like it did, and staying there as long as it did, broke the trust. It cleaned allot of us out in one way or another, exposing the bullshit for what it is. Government fucked everything up by doing nothing thinking they would gain political power by making Bush look bad. People could no longer pay mortgages, people slowed down buying and selling, and a scam was revealed because of it. A scam that even Government was in on, price gouging home sales and loans. They got what they wanted, the cost being them exposed for the brainless hacks they are. The violation and hurt done to us, will not be soon forgotten, even though many are capable of consciously admitting the cause. When we see gold go back down, then we will be on the road to recovery. The gang that couldn't shoot straight.

 

[uscitizen]

After what 3 years people are beginning to figure things out?

Fox will be fighting the emerging truths.

 

[boedicca]

High oil prices are a symptom, not a cause.

They're one of the things that happen when the government's monetary and fiscal policies converge in Stagflation.

 

[uscitizen]

High oil prices are a symptom, not a cause.

They're one of the things that happen when the government's monetary and fiscal policies converge in Stagflation.

A bit of truth there, but just a bit.
It was not the cause of our recent oil ripoff.

Iraq invasion and speculation were the primary causes.
excessive oil gulttony by the USA was also a factor. ie gas guzzlers, etc.
China,s growing consumption was also a factor, however it was overplayed since Chinas economy was still going strong when oil fell back down.
And lets not forget greed

 

[william the wie]

Sounds like a reasonable hypothesis.

The bond market crashed nearly 20% in the last month. (Toro can give you better sources and perspective than I can on this these numbers because bonds are not an indicator I really keep an eye on.)

Insider smart money buy/sell ratios for the S&P 500 have been insanely bearish for months. (MarketWatch and Minyanville are free and have archives on this and other subjects. MSN and CNBC have also covered the same turf but not as well in my opinion.)

The stupid money buy/sell ratio as reflected in the put/call is and has been insanely bullish also for months.

The free CNN and USA today money sections have been covering real estate quite well and another 25% decline in home values seems likely.

This board does not have a pinned Bank Failure Friday thread but other boards do and that is not looking at all well.

Weekly UE applications also tend to look much worse even with Manpower and payroll reports than the official U3 that Pinqy keeps track of for us.

Therefore I would say sliding into double digit U3 unemployment and staying there for a year or more does seem likely.

 

[Terral]

Hi zzzz:

... Why is oil rising? The answer is that China is now the Worlds dominant economy in terms of being a vibrant consumer economy.

No! The price of oil is going up, because oil revenue is determined in Fed-created fiat U.S. Dollars. Printing up trillions and trillions and trillions of dollars for handouts to Rothschild/Rockefeller Bankster pals devalues every dollar in your pocket. A weaker dollar means you need more of them to buy the same goods and services, which is the same reason the stock markets are 'melting up.' In 2000 you could buy the entire S&P Index with five ounces of gold, but today that same Index sells for less than one ounce of gold.

[ame=http://www.youtube.com/watch?v=eb1n1X0Oqdw]Melt Up: Wake The Hell Up Already[/ame]

The shrinking dollar is the reason more dollars are required to provide Health Care and gas in your car and a sack of potatoes. Gas will continue escalating higher with the weaker dollar, until that cost raises the cost of everything else and hyperinflation is the new reality and America stumbles into a deep Depression this country has never seen.

China became the second largest economy in the world in size earlier this year. (http://www.nytimes.com/2010/08/16/business/global/16yuan.html?_r=1) Southeastern Asian countries are riding China's coat tails and doing quite well.

Those countries do not have a Rothschild-owned Central Bank like the USA, all of Europe and most of the world devaluing the currency at record pace.

China has and is investing heavily in infrastructure, something the US is failing at and this will ultimately doom the US to second class status like the Fench and British. But that is another thread.

China is using those worthless dollars to create infrastructure, BEFORE the dollar collapse and coming depression.

Next year, if oil continues to rise faster than the economy, the US economy will take another dive. China's economy is expected to grow at 10%, the US 3.5%!

The US/Global Economy is imploding by design, so Rothschild and his Bilderberger/Council on Foreign Relations/Trilateral Commission Bankster pals can bring in their New World Order.

GL,

Terral

 

[Mr. H.]

It didn't take long for that $147 oil to crater to $30. It was a short-lived event.
Most of the trade deficit is comprised of crude purchases. You want more money to stay in the U.S. then drill for more oil, baby.