Voodoo Economics Story of the Week: Higher Oil/Gas Prices = Better Economy

[Oddball]

Go back to the political threads, Joke.

Your evident stupidity there only becomes more glaringly obvious when economically savvy people are reading your bilge.

 

[JakeStarkey]

Remember that I called it. Oil is not being driven by demand but by investment dollars. This will inevitably collapse, and I will collect on it. Dude, I am more than willing to put my cash and credit where my stated position is. I have done that in spades, which has returned hearts and diamonds. What have you done, little buddy?

 

[Oddball]

Like investment dollars aren't representative of demand.

Get the fuck out of here, you imbecile.

 

[JakeStarkey]

Commodity is different than industrial demand for oil, you nitwit. What have you done, little buddy? It is cute when Dude gets hysterical and shrill. Reminds me of Dick Cheney's wife when she a bit too much of the bubbly.

 

[Polk]

Flight to safety? That doesn't make any sense. If gold and silver were spiking while everything else was flat, sure, but you don't invest in oil unless you think the price is going up, and that's only going to happen if demand is up.

Or there's more money in circulation versus product available to buy.

aka I-N-F-L-A-T-I-O-N.

Except inflation is currently running at 0-3% a year. Now, down the road might be a different story.

Exactly.

 

[Mike Mitrosky]

Flight to safety? That doesn't make any sense. If gold and silver were spiking while everything else was flat, sure, but you don't invest in oil unless you think the price is going up, and that's only going to happen if demand is up.

Or there's more money in circulation versus product available to buy.

aka I-N-F-L-A-T-I-O-N.

Except inflation is currently running at 0-3% a year. Now, down the road might be a different story.

You dont honestly believe those bs govt inflation numbers do you? Everybody knows real inflation is more than that.

 

[Oddball]

Or there's more money in circulation versus product available to buy.

aka I-N-F-L-A-T-I-O-N.

Except inflation is currently running at 0-3% a year. Now, down the road might be a different story.

Exactly.

Rubes.

 

[Polk]

Except inflation is currently running at 0-3% a year. Now, down the road might be a different story.

Exactly.

Rubes.

The real rubes are you gold cultists.

 

[Oddball]

Metals aren't the only place people go to maintain value.

In case you missed it, almost all commodities are up.

 

[Polk]

Metals aren't the only place people go to maintain value.

In case you missed it, almost all commodities are up.

Which rests on something far more obvious: the economy is improving.

 

[Oddball]

 

[The Rabbi]

Or there's more money in circulation versus product available to buy.

aka I-N-F-L-A-T-I-O-N.

Except inflation is currently running at 0-3% a year. Now, down the road might be a different story.

You dont honestly believe those bs govt inflation numbers do you? Everybody knows real inflation is more than that.

"Everybody"?? Really?
You have some links or something to show this?
While the CPI has some definite flaws I don't think gov't is really capable of perpetrating massive fraud without someone spilling the beans. If they can really do that then I think they are also capable of passing a health care entitlement that will lower the deficit.

 

[JakeStarkey]

Metals aren't the only place people go to maintain value.

In case you missed it, almost all commodities are up.

Including oil, which, however, no pent-up demand exists. If there isn't any evidence of that, then that commodity money is going to seek better and more secure profit elsewhere.

 

[JakeStarkey]

Metals aren't the only place people go to maintain value.

In case you missed it, almost all commodities are up.

Which rests on something far more obvious: the economy is improving.

eh . . . not as quickly as real Americans would want, but good enough that BHO will easily hold onto sizable majorities in next year's election.

 

[Paulie]

CPI numbers are skewed for this main reason alone:

The Plutocratic Gap

http://economicsbulletin.vanderbilt.edu/2002/volume4/EB-01D60003A.pdf

This is why when accounting for inflation, CPI is quite a flawed method.

 

[Paulie]

No demand for oil driving up prices can be substantiated at all. Paulie, I believe that the inventories are much higher than what you believe. Oil prices are be driven up because they are being treated as a commodity, not as a product. Why? Because the dollar is weak. Once the bubble on oil bursts, the investors will go jump on the dollar band wagon, driving down oil prices and the euro.

I don't "believe" oil inventories are down, I KNOW they are.

OIL FUTURES: Oil Down On Stronger Dollar; Inventories Eyed - WSJ.com

The American Petroleum Institute late Tuesday showed crude stocks fell 3.532 million barrels last week, gasoline stocks dipped 255,000 barrels and distillate stocks (diesel/heating oil) dropped 671,000 barrels.

Oil is being "treated as a commodity and not as a product"? This makes no sense. OIL IS a commodity, but you're somewhat right in that it isn't being treated as a product because there is not this DEMAND for it as the TV and newspapers would like us to believe. The DEMAND is for the run-up in price, not use. It's just an inflation trade, and the price should settle back down somewhere around $60 where it belongs. There's no "bubble" quite yet. A "bubble" was LAST year when it was at $150.

So it seems we somewhat agree, although I don't think you have your analyses formed very coherently. I get the impression that you don't understand how commodities work in a time of massive inflation staring us dead in the face.

No big deal, just keep learning. It's what I do.