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Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 11/22/2008 : 19:25:09
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Are gasoline prices a decoy for inflation? Other than raw commodites & employment, what else is down now so much as to make you believe that the u.s. is in a true deflation (lowering prices)? If there is a conspiricy to use gas prices to make u.s. think we are in a deflationary economy rather than an inflationary one then it seems to be working. Even if gas was 50 cents a gallon how much can you really use? Other than mass gas hoarding in huge tanks you really aren't going to be buying much more than you are now or when it was $4.00 a gallon. That is especially true if you can't afford to travel anywhere.
No other prices are posted for anything out on the side of the road as gasoline prices are. If you wanted to make people think inflation is coming down then lower gasoline prices would be the way to go.
It appears to me that we may be in a stagflation that is being marketed to us as a deflation.
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Think positive. |
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 11/22/2008 : 20:14:23
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Excellent post Ardent Listener. Very well put. I was telling guys at work the other day that it doesn't matter what the price is and that you can only use so much. Great minds think alike....
Deal
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Live free or die.
Plain and simple.
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your council or your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen."
- Samuel Adams |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
 Posted - 11/22/2008 : 20:57:44
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There was a massive flight to the dollar. Everything and I mean everything else went down as a result. The scale of the move was so massive that I don't think that it could have been engineered.
Fundamentally the dollar is toast, but that means nothing for the present. People move the markets. Eventually, fundamentals matter and waiting for them to matter can feel like an eternity... |
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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
Posted - 11/22/2008 : 20:59:42
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I think there is a lot of merit to that line of thinking. So much so I do believe it to be true.
Gas has to be the number one consumer item people use to gauge the economy. Cheap gas is being percieved by the sheeple as keeping inflation under control.
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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
Posted - 11/22/2008 : 21:09:17
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quote:
Originally posted by horgad
There was a massive flight to the dollar. Everything and I mean everything else went down as a result. The scale of the move was so massive that I don't think that it could have been engineered.
Fundamentally the dollar is toast, but that means nothing for the present. People move the markets. Eventually, fundamentals matter and waiting for them to matter can feel like an eternity...
Very true, but gasoline seems to have dropped harder than most other commodites. I don't think the demand for gas has dropped as much because of the slowing economy as we are led to believe. My gas consumption never really changed, even when it was well over $4 a gallon.
Now were into the heating season, demand for heating oil should be puting pressure on crude supply, causing gas prices to rise. Holiday travel should be putting pressure on the demand side of the equation for gas. Yet gas prices are still dropping over a dime a week...
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Edited by - Bluegill on 11/22/2008 21:09:52 |
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fb101
Administrator
USA
2856 Posts |
Posted - 11/22/2008 : 21:29:30
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One more thing I think needs to be taken into account. Since oil is denominated in dollars, and the oil prices were killing Euros (and us) it would seem the easy answer is to boost the dollar, making oil cheaper and easing the pressure. Then, if you're Euro, you get multiple benefits. A)Oil is cheaper
B)You lessen or eliminate any existing competition from US exports
C)Your exports to the US become cheaper
D)Those saps in the US won't be frugal for too long, they've forgotten how.
E)The idiots in their government may just hand out another stimulus check which the people will likely hand over to European (and Asian) countries.
F)The price drops of Euro goods will appear to be deflation and cause lower interest rates and increase spending by Americans.
So if you're a European central banker, the answer to your problems is to buy dollars. |
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Edited by - fb101 on 11/22/2008 21:32:51 |
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Gas prices, a decoy for inflation? Conspiricy ?
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