[Plantagenet]

$this->bbcode_second_pass_quote('threadbear', ' ')In the coastal cities, house prices have gone up at least 100% in the last five years, so a correction of 20% is HIGHLY deflationary.

[threadbear]

$this->bbcode_second_pass_quote('Plantagenet', '')$this->bbcode_second_pass_quote('threadbear', ' ')In the coastal cities, house prices have gone up at least 100% in the last five years, so a correction of 20% is HIGHLY deflationary.

[Plantagenet]

$this->bbcode_second_pass_quote('threadbear', '')$this->bbcode_second_pass_quote('Plantagenet', '')$this->bbcode_second_pass_quote('threadbear', ' ')In the coastal cities, house prices have gone up at least 100% in the last five years, so a correction of 20% is HIGHLY deflationary.

[Plantagenet]

Its in your neighborhood. Tell us what you know about it.

[threadbear]

$this->bbcode_second_pass_quote('Plantagenet', '')$this->bbcode_second_pass_quote('threadbear', '')$this->bbcode_second_pass_quote('Plantagenet', '')$this->bbcode_second_pass_quote('threadbear', ' ')In the coastal cities, house prices have gone up at least 100% in the last five years, so a correction of 20% is HIGHLY deflationary.

[seldom_seen]

The rising cost of oil leads to a rising cost of gasoline, food, and just about everything else that is transported, constructed or somehow associated with oil (or just about everything). An offshoot of this problem is the sudden move to offset runaway oil prices by using different forms of fuel. In this case food, to power our machines in the form of palm, sugar cane, or corn based fuel stocks.

This in turn, creates a loop, which then comes right back around and causes inflation in food prices to gather even more momentum. A problem pushing poor people to the edge in Guatemala, Mexico, Indonesia (and probably other places I don't know about).

Our economic chieftans, the federal reserve, have recognized this problem and come rushing to the rescue like firefighters with buckets of kerosene to create more and more inflation by pumping up the money supply. An effort to "juice" or "jumpstart" the economy by making more money available for people to buy stuff. While at the same time trying to hide any evidence of this by concealing or convoluting economic data related to money supply and inflation.

The economy unfortunately does not run on money. It runs on oil (and NG, coal, topsoil). Thus the candle is burning at both ends and the flames are closing in from both sides.

The question remains. Is this a cynical or malicious attempt by the federal reserve to flush our economy down the toilet? Or are economists as really decoupled from reality as many think? "Hey Ben, oil sure is getting expensive." "I know Alan, but we use dollars to buy oil, so let's just make some more dollars." "Brilliant, Ben!."

Here is a fella named Perry Arnett's take on this issue. I mostly agree with what he says except I'm not sure whether central bankers are really aware of resource depletion, or they are just responding like they always respond with cornucopian reflexes by printing more money because they really have no other option.

$this->bbcode_second_pass_quote('', 'A')nd while I cannot offer much proof at the moment of the following thesis, I submit that the recent ~18-24% INCREASE in world financial (fiat) liquidity, is a ‘tightly-coupled proxy’ for, and a derivative of a markedly similar DECREASE in available exosomatic energy resources. That is, I suspect the mechanism is such that since central bankers and other power brokers in governments are fully aware of Resource Depletion Theory, and Oil Depletion in particular, they have created for themselves an ‘ad hoc race’ to see who can drive the other guy into national bankruptcy first(!); ‘money’, in this case, serving as a last ditch GDP proxy tool replacing ‘real’ oil that no longer exists for ‘real’ wealth generation; sort of like playing King-of-the-Mountain. This suggests that as oil depletes further, fiat liquidity will continue to rise in similarly corresponding amounts.

http://groups.yahoo.com/group/AlasBabylon/message/32238

[Tanada]

$this->bbcode_second_pass_quote('seldom_seen', 'T')he rising cost of oil leads to a rising cost of gasoline, food, and just about everything else that is transported, constructed or somehow associated with oil (or just about everything). An offshoot of this problem is the sudden move to offset runaway oil prices by using different forms of fuel. In this case food, to power our machines in the form of palm, sugar cane, or corn based fuel stocks.

The question remains. Is this a cynical or malicious attempt by the federal reserve to flush our economy down the toilet? Or are economists as really decoupled from reality as many think? "Hey Ben, oil sure is getting expensive." "I know Alan, but we use dollars to buy oil, so let's just make some more dollars." "Brilliant, Ben!."

[MrBill]

Blah, blah, blah. More of the same 'blame the economists' and 'policy makers' type posts we see every day on peak oil dot com.

I read far fewer posts about suggestions on how to solve post peak oil depletion or mitigate its economic effects?

Maybe oil consumers are decoupled from reality? Do not their low levels of savings and record levels of debt indicate that they too believe that growth and higher living standards can continue forever?

Did you happen to miss this report?

"Uncertainty about future oil supply makes it important to develop a strategy for addressing a peak and decline in oil production."
Source: United States Government Accountability Office Report

I think the title says a lot? But who is listening?

The very first paragraph states, "Oil is a global commodity, and its price is determined by the balance between world demand and supply." It does not get much simpler or straight forward, although I know economists are famous for mumble jumbo, right?

And peak oil news is a daily diet in the papers. It is not like it is a big secret that everyone except posters on this site are completely unaware of? There is just no concensus as to when and how it will play out, 'in reality', of course.
National Petroleum Council hides the hard truths about energy instead of facing them

So you that are so grounded in reality. Let us read your predictions in black & white here? What are your solutions? Tell us how we are going to transition to a fossil free future? By cutting back money supply?

First of all that 'comment' alone shows you do not even know where we are much less where we are going? Money supply is not something you can 'arbitrarily' cut back on. Money supply is a function of demand for money and credit as controlled by interest rates set by the Federal Reserve. You raise the cost of money and borrowing and you reduce demand. You cannot simply reduce money supply.

Secondly, demand for money and credit is global. So you can hike US interest rates to 20%, but if investors can still borrow freely at 1% in yen then you have done zero to reduce potential money supply.

Yeesh, I read ill-informed comments all day long here. Posters just expect to be able to say anything, so long as its populist and plays to the crowd. Don't worry if it makes sense. Decoupled from reality indeed.

[Tanada]

Mr. Bill,

IMO which you obviously disagree with, fiat money IS THE PROBLEM not the solution.

Fiat money is completly arbitrary and its value changes on whims or market forces based against other fiat currencies if you prefer.

It is all just a big game they are playing with other peoples lives and I am sick of it, and if I knew a way to fix it I would be doing everything I could to accomplish the repairs.

Complaining that some of us don't beleive fiat money is a great thing is a really weird response, but hey whatever makes you happy. I come here to vent so I can keep up the charade of a normal life with my family friends and fellow members of society while the current system lasts.

[EnergyUnlimited]

$this->bbcode_second_pass_quote('seldom_seen', '
')The question remains. Is this a cynical or malicious attempt by the federal reserve to flush our economy down the toilet? Or are economists as really decoupled from reality as many think? "Hey Ben, oil sure is getting expensive." "I know Alan, but we use dollars to buy oil, so let's just make some more dollars." "Brilliant, Ben!."

[MrBill]

$this->bbcode_second_pass_quote('EnergyUnlimited', '')$this->bbcode_second_pass_quote('seldom_seen', '
')The question remains. Is this a cynical or malicious attempt by the federal reserve to flush our economy down the toilet? Or are economists as really decoupled from reality as many think? "Hey Ben, oil sure is getting expensive." "I know Alan, but we use dollars to buy oil, so let's just make some more dollars." "Brilliant, Ben!."

[MrBill]

$this->bbcode_second_pass_quote('Tanada', 'M')r. Bill,

IMO which you obviously disagree with, fiat money IS THE PROBLEM not the solution.

Fiat money is completly arbitrary and its value changes on whims or market forces based against other fiat currencies if you prefer.

It is all just a big game they are playing with other peoples lives and I am sick of it, and if I knew a way to fix it I would be doing everything I could to accomplish the repairs.

Complaining that some of us don't beleive fiat money is a great thing is a really weird response, but hey whatever makes you happy. I come here to vent so I can keep up the charade of a normal life with my family friends and fellow members of society while the current system lasts.

[MrBill]

Tanada wrote:
$this->bbcode_second_pass_quote('', 'F')iat money is completly arbitrary and its value changes on whims or market forces based against other fiat currencies if you prefer.

[EnergyUnlimited]

$this->bbcode_second_pass_quote('MrBill', '')$this->bbcode_second_pass_quote('EnergyUnlimited', '
')That is probably true, but sad state of affairs.

Most of economists are decoupled from reality.

[mmasters]

Fiat is a BIG part of the problem.

With wealth remaining constant and all fiat currencies naturally depreciating towards zero value, fiat serves as a rigged transfer mechanism for wealth. The fiat's mechanism of transfer is by way of inflation which banks, corporations, governments, central banks and wealthy groups control or influence. Additionally, the rising cost of oil and food substanically adds to fiat's inherent inflation making it an even greater wealth transfer mechanism.

[seldom_seen]

$this->bbcode_second_pass_quote('MrBill', 'B')lah, blah, blah. More of the same 'blame the economists' and 'policy makers' type posts we see every day on peak oil dot com.

[CrudeAwakening]

$this->bbcode_second_pass_quote('MrBill', ' ')Money supply is not something you can 'arbitrarily' cut back on. Money supply is a function of demand for money and credit as controlled by interest rates set by the Federal Reserve. You raise the cost of money and borrowing and you reduce demand. You cannot simply reduce money supply.

[cube]

$this->bbcode_second_pass_quote('MrBill', 'B')lah, blah, blah. More of the same 'blame the economists' and 'policy makers' type posts we see every day on peak oil dot com.