|
kdsub -> RE: Iraqi government (10/27/2008 3:44:45 PM)
|
quote:
ORIGINAL: Sanity The problem with your idea is that the oil market is global, and so any serious cut in production anywhere causes prices to spike everywhere. And you can't just call out, "Stop gas prices at eight dollars a gallon" and have that happen, it could as easily go to sixteen dollars a gallon if the conditions are right. As we've all recently learned, a lot of the price of the barrel of oil is speculation, and so if there were domino wars in the Middle East causing a serious shortage prices could potentially skyrocket and we could all be screwed bad. And the problem isn't as much as what you as an individual think you can can afford to pay, it's more a question of what society can afford. Farmers need fuel to run their equipment and to ship their harvests, and a lot of their fertilizers and other necessary chemicals are oil dependent. Anything that is mined or harvested or manufactured, everything that is transported... in other words everything becomes more expensive. Fishing trawlers become more expensive to operate... just name it. So essentially our money becomes less valuable. People on fixed incomes suffer terribly when fuel costs skyrocket - imagine what double digit inflation does to the poorest people in third world countries, living on around a dollar a day... or even people here, getting by on minimum wage, or the elderly trying to get by with just their social security. Even the "middle class" obviously feel the pinch with any serious cut in the oil supply. We need affordable energy, and like it or not oil is going to be a fundamental part of any energy equation for the foreseeable future. Sanity I’ll admit I have no expertise in economics, do you?…I’m not talking about an immediate cut in production…just a shift where we get our oil. Remember we are only talking a 20 to 30 percent shift. The impact of that shift can be greatly reduced by the options I described above. I really don’t care what Saudi Arabia does with its extra oil.. maybe they can turn oil into food in the way we turn food into oil. The whole Idea in my suggestion is not to give a rats ass about domino wars in the Middle East…That is our problem and has been for years…we’ve let oil cloud our fair judgment. I remember you and others saying how the cost of oil was a true reflection of supply and demand…Now we see it was just speculation...so I do find it hard to believe all you say now. I don’t believe there would be any long-term shortage of energy with a comprehensive energy plan. Butch
|
|
|
|