Comments on: Government To The Rescue? http://www.economyguy.com/government-to-the-rescue/ Economic News For Everybody....by Tom Harvey and Cyrus Uible Fri, 06 Aug 2010 18:53:55 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Tom Harvey http://www.economyguy.com/government-to-the-rescue/comment-page-1/#comment-554 Tom Harvey Wed, 12 Nov 2008 22:21:07 +0000 http://www.economyguy.com/government-to-the-rescue/#comment-554 Hi David, I agree with your opinion that lower oil prices will give the US more control in the financial world. However, this is a transitionary period, and as soon as we get out of the recession - oil prices will go up, as you said. So, the question is "how long" will oil prices stay down? One other consideration is the manipulation of the oil futures market to unrealistic (high or low) prices. Tom Hi David,

I agree with your opinion that lower oil prices will give the US more control in the financial world. However, this is a transitionary period, and as soon as we get out of the recession – oil prices will go up, as you said. So, the question is “how long” will oil prices stay down? One other consideration is the manipulation of the oil futures market to unrealistic (high or low) prices.

Tom

]]> By: David http://www.economyguy.com/government-to-the-rescue/comment-page-1/#comment-553 David Wed, 12 Nov 2008 04:23:59 +0000 http://www.economyguy.com/government-to-the-rescue/#comment-553 I have a different opinion regarding lower oil prices. I think they may help stabilize the world from the perspective of putting less wealth into the hands of unstable regions in the world. Additionally, as long as the US dollar is implicitly backed by oil, it helps the US remain in control. That said, maybe it is time we had less control and imposed our will less frequently in foreign lands. In the longer term, there seems to be more demand for energy worldwide than there is a supply of cheap oil. Thus, once we go through global deflation, it seems quite logical that we'll see energy prices rise as more countries industrialize and modernize. Thinking back to our last period of global deflation (Great Depression), the end result was world war. Let's hope that isn't what we'll see this time around. I have a different opinion regarding lower oil prices. I think they may help stabilize the world from the perspective of putting less wealth into the hands of unstable regions in the world. Additionally, as long as the US dollar is implicitly backed by oil, it helps the US remain in control. That said, maybe it is time we had less control and imposed our will less frequently in foreign lands.
In the longer term, there seems to be more demand for energy worldwide than there is a supply of cheap oil. Thus, once we go through global deflation, it seems quite logical that we’ll see energy prices rise as more countries industrialize and modernize. Thinking back to our last period of global deflation (Great Depression), the end result was world war. Let’s hope that isn’t what we’ll see this time around.

]]> By: Tom http://www.economyguy.com/government-to-the-rescue/comment-page-1/#comment-550 Tom Tue, 11 Nov 2008 23:09:30 +0000 http://www.economyguy.com/government-to-the-rescue/#comment-550 There was an interesting article in yesterday's USA Today about the problems with the credit card market and the debt that was packaged up and sold just like the sub-prime mortgages were sold. I would recommend it to you for reading. There was an interesting article in yesterday’s USA Today about the problems with the credit card market and the debt that was packaged up and sold just like the sub-prime mortgages were sold.

I would recommend it to you for reading.

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