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PeakOil is You

can the world really afford $200+ a barrel

Discussions about the economic and financial ramifications of PEAK OIL

Re: can the world really afford $200+ a barrel

Postby mos6507 » Tue 23 Jun 2009, 21:07:09

$this->bbcode_second_pass_quote('Spanktron9', '
')This is what I keep trying to convey to the hippies in Eugene, OR. They all have huge gardens, and bicycle everywhere, and do a good job of post peak living, except they all have huge "PEACE" banners and prayer flags out front. A large, disenfranchised part of the OR population, has military training, and the will to use it. That nice well stocked pantry is easy pickens with no defense plan.


But the two groups don't have to be on a collision course. I keep having visions of The Seven Samurai in my head. The ultimate doomstead lifeboat community is going to be comprised of mainly greenie permaculture hippie self-sufficiency types and a handful of grizzled survivalist types who are willing to do the dirty work for them.

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.

Image

I wish some of the prepping for violence that doomers do could be channeled into something a little more, how shall i say it, chivalrous? We need samurai, not survivalists.

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Re: can the world really afford $200+ a barrel

Postby Minvaren » Wed 24 Jun 2009, 01:47:12

I find myself agreeing mostly with you, Mos.

Those who can Do Things (medicine, growing or procuring food, sewing, brewing/distilling/creating drugs, building, etc.) will gain protection from those who need said things. There will be the exception, but even in direct conflict, the two should on average realize the benefit from each other. The real question is - on whose terms is the deal struck?

One can hope for the best, anyway.
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Re: can the world really afford $200+ a barrel

Postby rangerone314 » Wed 24 Jun 2009, 13:23:38

$this->bbcode_second_pass_quote('Minvaren', 'I') find myself agreeing mostly with you, Mos.

Those who can Do Things (medicine, growing or procuring food, sewing, brewing/distilling/creating drugs, building, etc.) will gain protection from those who need said things. There will be the exception, but even in direct conflict, the two should on average realize the benefit from each other. The real question is - on whose terms is the deal struck?

One can hope for the best, anyway.


Essentially what we are talking about is a realistic and diverse community, post-peak that performs ALL the functions of a normal society, including food production and defense.
An ideology is by definition not a search for TRUTH-but a search for PROOF that its point of view is right

Equals barter and negotiate-people with power just take

You cant defend freedom by eliminating it-unknown

Our elected reps should wear sponsor patches on their suits so we know who they represent-like Nascar-Roy
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Re: can the world really afford $200+ a barrel

Postby 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! 8O
"They're not too big to fail, they're too big to bail out!" Peter Schiff
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Re: can the world really afford $200+ a barrel

Postby kiwichick » Thu 25 Jun 2009, 10:13:06

montequest; yes continuous recession is depression

and thats what we are entering now

it will be 10 times worse than the 30's
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Re: can the world really afford $200+ a barrel

Postby Graeme » Thu 25 Jun 2009, 22:18:58

No it can't according to Kopits:

What oil price can America afford?

$this->bbcode_second_pass_quote('', 'S')teven Kopits of Douglas Westwood Energy research discusses this urgency in a new report, noting that in the last 37 years, the US has suffered six recessions. From the beginning of each, he says, oil played a central role. In every case when oil consumption breached 4 per cent of GDP, he notes, the US has suffered a recession. Indeed, he says, the current US recession began within two months of oil hitting the 4 per cent threshold, when oil reached $80 per barrel.


REGULATING SPECULATION
Human history becomes more and more a race between education and catastrophe. H. G. Wells.
Fatih Birol's motto: leave oil before it leaves us.
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Re: can the world really afford $200+ a barrel

Postby bodigami » Mon 29 Jun 2009, 07:53:33

yes, partly. :) :mrgreen:
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Re: can the world really afford $200+ a barrel

Postby eXpat » Mon 29 Jun 2009, 13:17:40

$this->bbcode_second_pass_quote('Graeme', 'N')o it can't according to Kopits:

What oil price can America afford?

$this->bbcode_second_pass_quote('', 'S')teven Kopits of Douglas Westwood Energy research discusses this urgency in a new report, noting that in the last 37 years, the US has suffered six recessions. From the beginning of each, he says, oil played a central role. In every case when oil consumption breached 4 per cent of GDP, he notes, the US has suffered a recession. Indeed, he says, the current US recession began within two months of oil hitting the 4 per cent threshold, when oil reached $80 per barrel.


REGULATING SPECULATION

Very interesting article, the golden rule seems to be:
$this->bbcode_second_pass_quote('', 'T')hree rules for policy

History then provides us three rules by which to avoid recession caused by oil prices, notably:
1. Crude oil expenditures should not exceed 4% of GDP.
2. Oil prices should not increase by more than 50% year-on-year.
3. Oil price increases should not be so great that a potential demand adjustment should have to reach 0.8% of GDP on an annual basis, as shedding demand at this rate has generally been associated with recession.
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You can ignore reality, but you can't ignore the consequences of ignoring reality.” Ayn Rand
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Re: can the world really afford $200+ a barrel

Postby rangerone314 » Tue 30 Jun 2009, 10:31:51

$this->bbcode_second_pass_quote('eXpat', '
')History then provides us three rules by which to avoid recession caused by oil prices, notably:
1. Crude oil expenditures should not exceed 4% of GDP.
2. Oil prices should not increase by more than 50% year-on-year.
3. Oil price increases should not be so great that a potential demand adjustment should have to reach 0.8% of GDP on an annual basis, as shedding demand at this rate has generally been associated with recession.
[/quote]

1. What happens when crude oil expenditures exceed 10% of GDP?
3. What happens if demand drops 0.8% of GDP per year, but supply drops by 3% per year?
An ideology is by definition not a search for TRUTH-but a search for PROOF that its point of view is right

Equals barter and negotiate-people with power just take

You cant defend freedom by eliminating it-unknown

Our elected reps should wear sponsor patches on their suits so we know who they represent-like Nascar-Roy
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