by odegaard » Thu 25 Jun 2009, 02:36:56
$this->bbcode_second_pass_quote('mos6507', 'I') think that's why I tend to get into so many flamewars with the James Wesley Rawles style survivalists, most of whom tend to cluster over at LATOC. A bunch of trigger-happy soldiers does not make a functional community.
The greatest flamewars I've seen were not between believers and non-believers but instead between people who both believe in PO but disagree on how it will play out.
//
Anyways getting back to the original question: "can the world really afford $200+ a barrel"
Assets tend to move in a group. I like to call this "group action".
For example when the stock market goes up 90% of all stocks go up.
It doesn't matter if a company is selling cars, computers, or hamburgers its stock price will go up in a bull market.
And of course the same is also true in a bear market, 90% of all stocks go down.
Getting back to commodities, crude oil NEVER goes up alone. When oil is up, so is gold, silver, corn, wheat, sugar, cotton, etc...
The commodity markets also work on "group action".
The world
can NOT afford $200 oil because it won't just be oil going up but the entire commodity index!
