[Dakar]

I will fully admit my grasp oneconomics is tenous at best. I'm an artist, so this doesn't particularly bother me. However, I have a few notions I'd like to air out here and you guys can (kindly? lol) pick them apart and tell me where I have and haven't erred.

I was wondering if this sudden increase in prices at the pump will have a negative effect on the economy. If people start having to spend more on gas, they'll have less disposable income, so could it possibly cause a recession?

Also, are they any projections as to how long we're looking at having these huge oil prices? Weeks? Months?

Lastly, say I were correct and the sudden spike in gas prices could hurt the economy. Would the government be unwarranted in temporarily stepping in and regulated prices to prevent further economic problems?

Thanks, and play nice.

[Judge_Fire]

There are a number of additional factors that might affect consumption.

- Higher gas prices also raise transport costs, which translate into higher prices for many products.
- People may drive less, which in some areas could mean less time spent in malls or shops.
(- And at the extreme, even the price of plastic as raw material may go up, as it's typically made of oil.)

These things may signal 'weakening consumer confidence' in the economy, which at higher levels could translate into general pessimism in the markets, and scepticism over the 'real' value of US treasury bonds. The latter being the things Asia is buying to sustain the debt-ridden US economy.

It's all a bunch of 'may', 'could' and 'might' - economics as usual.

Some hold optimistic views, while others are all doom and gloom. (URI may change, the title is 'The Endogenous Oil Shock').

There are risks, if things start escalating even faster than the trade and budget deficits. Problems could arise from lack of consumer confidence translating into an uncontrolled burst of the house price bubble, or the current diplomatic stand-off between the main financier of the US, China.

J

[mojo2]

On "Coast to Coast AM" tonite.

Matt Savinar, who created the Life After the Oil Crash site, will be discussing the possible repercussions on fuel prices and availability in the aftermath of Hurricane Katrina.

http://www.coasttocoastam.com/shows/2005/09/03.html
http://www.coasttocoastam.com/

Saturday 9/03/05 10:00pm - 5:00am depending on your local station play times. Available via Streamlink and via podcast on the internet. Streamlink subscribers can download past shows.

[NYCFarmboy]

gas prices will have very little impact on the economy as even though people are fainting from the horrer of 3 dollar gas, adjusted for inflation it is still less than it was in the 70's.

[RAILhead]

mojo, you gotta quit listening to those guys -- they'll rot out your brain, man!!11

[mojo2]

Originally Posted by RAILhead

mojo, you gotta quit listening to those guys -- they'll rot out your brain, man!!11

[img]http://www.coasttocoastam.com/timages/page/art4bio.jpg

Compare and contrast the level of credible information presented on Coast to Coast AM and that which you'll find on teh intarweb.

By the way, it's because of c2c that I first became aware of info that most us here are only now beginning to realize is true...peak oil.

The guy responsible for opening my eyes to it is the guest tonite.

I can't MAKE anyone get informed but I will at least share some of the things I know will help them become better informed on the subject that so many of us speak of without any relevant knowledge.

Anyone who discourages others from getting educated is no better than a thief.

Knowledge is power. Listen and THEN decide if it's for you or not.

mojo2
Addicted to MacNN


Join Date: Jun 2005
Posts: 1,818
Status: Offline
Yesterday, 02:05 PM

Quote:
Originally Posted by finboy
That explains a lot.

That comes from someone who listened to Art and George (with a critical ear) for years, every night (for the noise).

Reminds me of the homeless guys who hang out at the SF library and just read the newspapers to pass the time.

Art & George are over your level of comprehension, eh?

Seriously, though I know you'd attest to the serious nature of certain shows and the level of thought regularly indulged isn't for lightweights.

One regular frequent guest?

Quote:
Michio Kaku

Books
Parallel Worlds: A Journey Through Creation, Higher Dimensions, and the Future of the Cosmos
Einstein's Cosmos
Visions: How Science Will Revolutionize the 21st Century http://www.amazon.com/exec/obidos/A...3687331-3271033
Hyperspace: A Scientific Odyssey Through Parallel Universes, Time Warps and the Tenth Dimension
Beyond Einstein: The Cosmic Quest for the Theory of the Universe
Introduction to Superstrings

Websites
mkaku.org

Bio
Dr. Michio Kaku is an internationally recognized authority in theoretical physics and the environment. He holds the Henry Semat Professorship in Theoretical Physics at the City College and the Graduate Center of the City University of New York. He has lectured around the world and his Ph.D. level textbooks are required reading at many of the top physics laboratories. Dr. Kaku graduated from Harvard in 1968, summa cum laude, and number one in his physics class.

He received a Ph.D. from the University. of California at Berkeley Radiation Laboratory in 1972. He held a lectureship at Princeton University in 1973. He then joined the faculty at the City University of New York, where he has been a professor of theoretical physics for 25 years. His goal is to help complete Einstein’s dream of a “theory of everything, “ a single equation, perhaps no more than one inch long, which will unify all the fundamental forces in the universe.

[mojo2]

Originally Posted by NYCFarmboy

gas prices will have very little impact on the economy as even though people are fainting from the horrer of 3 dollar gas, adjusted for inflation it is still less than it was in the 70's.

When you recognize all the other repercussions of increased gas prices you'll sing another tune. Aren't you paying attention to what's happening in NOLA and the Katrina areas? The reporters are TELLING us that certain things are going up in price and certain industries will be harder hit than others as a result of increased gas prices. Some businesses are already going under. No wonder foreigners laugh at Americans.

Open your eyes and ears and think.

And as you become increasingly aware of the growing economic impact of increased gas prices, keep in mind that when we hit $4.00/gal avg. nationwide, THAT is when we'll really see things change.

Who are you gonna believe, anyway? Me or your misinformed mind?

[Dakar]

Originally Posted by NYCFarmboy

gas prices will have very little impact on the economy as even though people are fainting from the horrer of 3 dollar gas, adjusted for inflation it is still less than it was in the 70's.

Good point. Also, most of our vehicles today are more fuel efficient.

Problem is, there's a hell of a lot more of us using that gas right now.
Anyway, did it have any impact on the economy then?

[mojo2]

Originally Posted by Dakar

Good point. Also, most of our vehicles today are more fuel efficient.

Problem is, there's a hell of a lot more of us using that gas right now.
Anyway, did it have any impact on the economy then?

Yes. Wikipedia it.

[mojo2]

Information on the oil situation written in French

http://wolf.readinglitho.co.uk/francais/index.html

And in English

http://www.wolfatthedoor.org.uk/