Oil Nears $100/Barrel--What Do You Make of It?

by owenfieldreams 31 Replies latest jw friends

  • Justitia Themis
    Justitia Themis

    Yes, I've looked at gold also. Of course, if it gets bad enough, the government will execute another type of Executive Order 6102 as they did during the Depression. But, it certainly does help in the interim.

    http://www.itulip.com/forums/archive/index.php?t-495.html

    No one knows for sure what might happen during the next recession, but here’s a scenario. Let’s say there is a crisis that causes a sudden drop in consumers' access to credit and a corresponding decline in demand. A U.S. war with Iran and sympathetic withholding of oil by Venezuela that causes a spike in the price of oil to $200 a barrel would do it. Interest rates will rise and credit will tighten, reducing the flow of credit to the median household that has come to rely on it to compensate for loss of wage income. We’d then have a situation not unlike the early 1930s, with an economy comprised of a few million rich unable to generate sufficient demand in the economy to employ several hundred million without access to the credit they use to pay the bills.

    When FDR took over in 1933, he had a similar problem. Thousands of very rich buying super cars cannot generate enough demand to employ millions of workers. The problem was not unique to the U.S. but was global, just as housing and other related credit bubbles today are not unique to the U.S. Both eras’ stock market and credit bubbles produced wealth inequality. The economic crisis that followed turned this inequality into a political nightmare. The way it was addressed in parts of Europe was the wholesale redistribution of wealth in Communist movements. There was a period in the early 1930s when many were convinced that a Communist movement was all but inevitable in the U.S. In his memiors, Alistair Cooke noted that he came to the U.S. from the UK to cover the Communist revolution that was at hand, seeing this as a once in a lifetime career opportunity for a young journalist.

    Political developments overseas made FDR’s solution an easier sell to the wealthy elite in the U.S. when he came into office. The U.S. president that follows the administration that follows the Bush II administration, take note.

    FDR offered the top 1% in American society a better option than Communism: "Turn in your gold and the government we will pay you in currency which we will then inflate. The impact will be that your money will be put back into circulation to get the economy moving and we’ll get the banking system working again. Everyone wins, and it’s a better deal than the creditor class is getting in, say, Hungary. This will cost you only 30% of the purchasing power of your wealth."

    Most responded by voluntarily turning in their gold to the government in exchange for currency. To take care of stragglers, Executive Order 6102 was issued in April 1933 (repealed in 1975), making private gold ownership illegal in the U.S. This law was intended to keep bankers from cutting deals with their wealthy clients. Once the government had the gold, they marked it up from $20 to $35 an ounce. At once, a 30% inflation occurred to halt the deflation that had been crippling the economy.

  • Simon
    Simon

    Actually, I don't think oil is getting that much more expensive (slightly) but it's more that the US dollar (which oil is usually priced / quoted in) is depreciating so rapidly.

    Maybe now though America will get with the program and start to look at efficiency and conservation ... they are the only major country to become less fuel efficient in recent years !

  • Warlock
    Warlock

    The increase in the price of oil has been caused by many factors, the least of which is any increase in consumption by the U.S.

    Why dont' some of you look up some financial websites that talk about oil.

    Warlock

  • oldflame
    oldflame
    may be paying $3.50/ gallon

    Try $5.00 a gallon and coming soon to your town.

  • jaguarbass
    jaguarbass

    Man used to be under kings who exploited them and kept them poor.

    Then man had slaves.

    Now our keepers, owners have found a new way to tax the masses.

    Some scientist say that the earth makes oil, that there is no shortage and no such thing as fossil fuel.

    They say have you ever burried a dead dog or pet in your yard and went back and dug them up and found a puddle of oil? Bleiving in fossil fuels is like believing in Santa Clause or the Easter bunny.

    Man lives by the Golden Rule. Those who have the Gold make the rules. They own the presidents and congress and senate.

    There is nothing new under the sun.

    Somebody made and designed us and they made us just dumb enough to not be able to figure out what is going on and who our owners, keepers are.

    Those are my thoughts.

  • Gill
    Gill

    Crude Oil is just so 'passe'!

    Enough with it peoples! It's time to move on with renewables, ditch the middle east to their self destroying muddled existence and move on to the future and beyond!!

  • jaguarbass
    jaguarbass

    Imagine how expensive it would be if we hadn't invaded Iraq. Thats a no brainer. About a dollar a gallon. Thats what it was when Clinton was president. Hugo Chavez comes right out and says Bush is an idiot. He doesnt like him so he charges more for oil. When Sadam Hussien was in charge there was stability in Iraq and oil was cheap. Oh I get it you asked a rhetorical question. Sorry.

  • jgnat
    jgnat

    It's not just China who exports oil, you know. Alberta will keep raking in the bucks. The oil will be gone one day, as Elsewhere points out.

    I've told my hubby the next car we get will be a hybrid. No monster trucks for us!

  • WTWizard
    WTWizard

    For one, it is going to be harder for Jehovah's Witlesses to do their stuff. They are working as window washers, having just been effectively banned from going to college. And they burn lots of gas trying to get their litter-ature into the hands of people. This is going to put a squeeze on them like nothing they have ever seen before.

  • Alligator Wisdom
    Alligator Wisdom

    The pioneers in my congregation are feeling the "crunch" of rising fuel costs. I believe even more so in my congregation as it is covering a foreign language territory and it really isn't house-to-house work in terms of walking. It is more like driving from one neighborhood to find a house and then to another as our territory encompasses the entire district. Households are literally scattered.

    This will certainly have an effect on these so-called "full-time" servants. These full-time servants will eventually need to get full-time jobs!

    Alligator Wisdom (aka Brother NOT Exerting Vigorously)

Share this

Google+
Pinterest
Reddit