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PeakOil is You

Here it comes...

Discussions about the economic and financial ramifications of PEAK OIL

Re: Here it comes...

Unread postby smallpoxgirl » Sun 28 Sep 2008, 16:18:54

On the bright side, I hear they're considering mailing out a lubricant package with the tax forms this year. :roll:
"We were standing on the edges
Of a thousand burning bridges
Sifting through the ashes every day
What we thought would never end
Now is nothing more than a memory
The way things were before
I lost my way" - OCMS
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Re: Here it comes...

Unread postby TheDude » Sun 28 Sep 2008, 16:24:48

Ilargi also says:

$this->bbcode_second_pass_quote('', 'A')n adapted Paulson plan will try to address that issue by buying up frozen assets, and the idea is that that will make banks whole again, and take away the fear. But that can’t be done with $700 billion, it can’t even by done with $7 trillion. There is far too much of that funny frozen paper in the world, it’s more like $700 trillion, and it is indeed all over the world, which compounds the problem, for all intents and purpose, to infinity and beyond.


Maybe we could offshore it on the moon? :x Like at the end of the film 2001: "Jupiter and Beyond the Infinite.”

My God, it's full of derivatives!

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Re: Here it comes...

Unread postby killJOY » Sun 28 Sep 2008, 16:28:13

Just think, this isn't even the beginning.

They haven't even rolled the title credits yet.
Peak oil = comet Kohoutek.
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Re: Here it comes...

Unread postby americandream » Sun 28 Sep 2008, 16:35:36

$this->bbcode_second_pass_quote('TheDude', 'I')largi also says:

$this->bbcode_second_pass_quote('', 'A')n adapted Paulson plan will try to address that issue by buying up frozen assets, and the idea is that that will make banks whole again, and take away the fear. But that can’t be done with $700 billion, it can’t even by done with $7 trillion. There is far too much of that funny frozen paper in the world, it’s more like $700 trillion, and it is indeed all over the world, which compounds the problem, for all intents and purpose, to infinity and beyond.


Maybe we could offshore it on the moon? :x Like at the end of the film 2001: "Jupiter and Beyond the Infinite.”

My God, it's full of derivatives!

Image


These rich dudes all round the world will find a way round this. It's going to be a band aid granted and in due course this crock of shites going to break, but in the meantime average Joe's like you and I will pic up the tab.
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Re: Here it comes...

Unread postby americandream » Sun 28 Sep 2008, 16:38:53

$this->bbcode_second_pass_quote('TheDude', 'I')largi also says:

$this->bbcode_second_pass_quote('', 'A')n adapted Paulson plan will try to address that issue by buying up frozen assets, and the idea is that that will make banks whole again, and take away the fear. But that can’t be done with $700 billion, it can’t even by done with $7 trillion. There is far too much of that funny frozen paper in the world, it’s more like $700 trillion, and it is indeed all over the world, which compounds the problem, for all intents and purpose, to infinity and beyond.


Maybe we could offshore it on the moon? :x Like at the end of the film 2001: "Jupiter and Beyond the Infinite.”

My God, it's full of derivatives!

Image


These rich dudes all round the world will find a way round this. It's going to be a band aid granted and in due course this crock of shites going to break, but in the meantime average Joe's like you and I will pic up the tab.
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Re: Here it comes...

Unread postby cube » Sun 28 Sep 2008, 16:49:24

$this->bbcode_second_pass_quote('Leanan', '')$this->bbcode_second_pass_quote('cube', 'I')t is perfectly possible to have price increases with no wage increase.
How does this mathematically add up?
You simply buy less but pay more. :)

But what happens to the businesses who are selling less? They don't stay in business. People lose their jobs, and lose even more purchasing power. And more businesses go out of business.
You have not disproved my position.
Even if we enter a great depression and purchasing power takes a massive nose dive, prices for everyday goods can still go up. You'll just buy less and less --> and pay more and more. An equilibrium will eventually be reached.

Here's an example:
Suppose a loaf of bread costs $3
and a cup of Starbucks coffee also costs $3
You have a budget of $6 therefore you can buy both bread and coffee today.
In a future inflationary depression scenario the cost of everyday goods may double in price.
In the future you'd spend $6 for a loaf of bread and buy no coffee.
You see....it adds up mathematically.
It's perfectly possible to have rising consumer prices and also stagnant wages. :)
That's what happened in the 1970's it's called "Stagflation".
Last edited by cube on Sun 28 Sep 2008, 17:02:12, edited 2 times in total.
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Re: Here it comes...

Unread postby Heineken » Sun 28 Sep 2008, 16:57:00

I agree with Cube in the inflation/deflation debate. Just at a gut level, of course, since I'm not an economist.

Falling prices in a time of growing scarcity just does't add up.

Also, what they're doing to the dollar can't possibly make it worth more going forward.
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Re: Here it comes...

Unread postby cube » Sun 28 Sep 2008, 17:19:14

$this->bbcode_second_pass_quote('Leanan', '.')..
This is far from settled yet. The credit implosion is massively deflationary.
I disagree.

Here's an analogy.
Inflation = driving a car forward
deflation = slamming the brakes, shifting into reverse, and then driving backwards

At the height of the housing boom we were speeding on the freeways at 100 mph.
Now that banks are being much more "stingy" with who they loan money out to, we're doing 55mph.
Have we slowed down? --> yes
Is the car going in reverse? --> no

Therefore we're still in an inflationary environment.
//
IMHO society would have to pay off its debt at a faster rate then it is taking on new debt to be considered deflation and that is definitely NOT happening.
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Re: Here it comes...

Unread postby Kristen » Sun 28 Sep 2008, 19:38:13

Isn't there a mathematical solution to our current problems?? I see the figure seven hundred billion, that can't be enough to cover it.

Are these bankers the ones who finance the campaigns? Our government representatives don't want to go broke.
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