CJ3Flyr
Super Moderator
Another good that'll make you crazy... :bash: http://economictimes.indiatimes.com...l_prices/articleshow/msid-3039762,curpg-1.cms
Gasoline/oil prices. How did you know?
- Thread starter juneau92
- Start date
JungleJim
New member
I remember back a year ago....The news was reporting that gasoline prices would go up to $3.50 to $4.00 a gallon by summer. It never happened last summer, but it's happening now.
I think since it never really went up a year ago like it was predicted, a lot of folks didn't think it would happen this year.
I wonder why it didn't come true last summer, but it is now?
I think since it never really went up a year ago like it was predicted, a lot of folks didn't think it would happen this year.
I wonder why it didn't come true last summer, but it is now?
Last edited:
Jeff Kleb
New member
JungleJim said:
The two most basic reasons I can think of are as follows:
1. The world-wide market price of crude is higher than ever before -- about $130 as of May 23rd. Since 70%+ of the pump price is based upon the price of purchasing crude oil, it is easy to see the relationship.
2. The "value" of the US Dollar on the world market is much lower than it was a year ago. Because of poor fiscal policies (which transcend party lines), our buck lacks the 'bang' that it once had. In a nutshell, this makes foreign products more "expensive" to US consumers; much as our Levi jeans and Marlboro cigarettes were "out of reach" for most people in the former Eastern Bloc nations back during the '70s and '80s before the Berlin Wall came down.
The dollar once was "king" of currencies, but that has changed dramatically.
:bash:
One of the few good things about the falling dollar is that many of our exported products become more affordable and competitive to foreigners wishing to purchase US-made goods.
I think a significant cause of our current economic instability is that speculation and a gambling-mentality is running rampant in our society.
Speculators are flipping houses and using stock/commodity markets as their personal casinos with little regard for sound fundamental analysis. These practices are raising prices for everybody. In the hands of a professional, speculation can be a useful tool often used as a mechanism to reduce risk. With the in-flux of non-professionals and TV sensationalism, it's a free-for-all.
Many of the price increases we're seeing are being fueled by a mechanism similar to ticket scalping (on a global scale). Demographics and supply/demand have taken a backseat. As long as the Government turns a blind eye, we will continue to remain on this economically disruptive roller coaster.
Speculators are flipping houses and using stock/commodity markets as their personal casinos with little regard for sound fundamental analysis. These practices are raising prices for everybody. In the hands of a professional, speculation can be a useful tool often used as a mechanism to reduce risk. With the in-flux of non-professionals and TV sensationalism, it's a free-for-all.
Many of the price increases we're seeing are being fueled by a mechanism similar to ticket scalping (on a global scale). Demographics and supply/demand have taken a backseat. As long as the Government turns a blind eye, we will continue to remain on this economically disruptive roller coaster.
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