PeakOil is You
THE Oil and Inflation Thread (merged)
Oil Prices May Resolve Fed's Inflation Split
by mmasters » Wed 23 Aug 2006, 10:20:34
$this->bbcode_second_pass_quote('', 'W')orld crude oil prices have bounced around the $70 to $75-a- barrel range since the end of March after rising sharply for about 2 1/2 years. If prices continue at roughly that level, it would bring down inflation and allay concerns about future price increases.
link 
Last edited by Ferretlover on Wed 04 Mar 2009, 13:21:11, edited 2 times in total.
Reason: Merged with THE Oil and Inflation Thread.
Reason: Merged with THE Oil and Inflation Thread.
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mmasters - Intermediate Crude
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Re: Increasing Oil Prices may help the FED's Inflation polic
by EnergyHog » Wed 23 Aug 2006, 12:22:30
Higher demand for oil and/or higher oil prices = higher demand for USD
And yet the USD is still falling.
And yet the USD is still falling.
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Re: Oil Prices May Resolve Fed's Inflation Split
by pup55 » Wed 23 Aug 2006, 12:35:03
$this->bbcode_second_pass_quote('', 'i')t would bring down inflation
...by finally taking enough money out of peoples' pockets that they cannot buy anything, driving the economy into a recession.
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Re: Oil Prices May Resolve Fed's Inflation Split
by Dreamtwister » Wed 23 Aug 2006, 12:51:33
The theory is that, if the price of oil maintains it's current level, eventually the fed will print enough money that they can turn off the printing presses. The economy *should* stop inflating. At least, that's what's supposed to happen.
Personally, I think we still have a long way to go before inflation finally slows down. The fed has stopped raising interest rates. That makes me think they have realized that the people *must* borrow, regardless of the rate. Further rate hikes would only hasten the foreclosure boom, and the inflation can't be stopped anyway, so there's nothing to gain by further rate hikes.
Personally, I think we still have a long way to go before inflation finally slows down. The fed has stopped raising interest rates. That makes me think they have realized that the people *must* borrow, regardless of the rate. Further rate hikes would only hasten the foreclosure boom, and the inflation can't be stopped anyway, so there's nothing to gain by further rate hikes.
The whole of human history is a refutation by experiment of the concept of "moral world order". - Friedrich Nietzsche
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Re: Increasing Oil Prices may help the FED's Inflation polic
by FoxV » Wed 23 Aug 2006, 13:36:56
$this->bbcode_second_pass_quote('EnergyHog', 'H')igher demand for oil and/or higher oil prices = higher demand for USD
And yet the USD is still falling.
And yet the USD is still falling.
because the primary support for the USD these days is interest differentials and the carry trade and not oil prices (although they help)
Most of the USD's loss in value was while the Fed rate was down to 1.5%. The quarter point rises have slowed the dollar's loss (except against commodity base countries like Canada and Australia).
The rest of the world is raising interest rates because their inflation calculations (which are far more accurate than the US's) says inflation is getting too high. If the US doesn't raise rates to match, then demand for the USD goes bye bye.
This would cause USD inflation and the price of oil would go up with it. So somebody should give that Mr Berry a slap. High oil prices will not bring down inflation because high oil prices is inflation.
Duh!
Angry yet?
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Post Peakoil inflation problems
by gwmss15 » Wed 30 Aug 2006, 11:15:29
I have read about extreame inflation rates of 900% a month in zimbabwe could this happen on a global scale due to peak oil
examples taken from http://www.railwaysafrica.com/news_african/zimbabwe.php
DIESEL, COAL & STAMPS
13 April 2006
Continuing shortages of diesel fuel continue to hamper train operations in Zimbabwe. The steam-worked commuter services at Bulawayo have not solved the problem completely. During the first week of April, inadequate supplies of coal grounded the Garratt locomotives.
Paperwork meanwhile is becoming increasingly expensive. The price of stamps, last adjusted in January 2006, has just gone up to $30,000 for a 20-gram letter within Zimbabwe, $225,000 to South Africa and $300,000 to Europe. The inflation rate exceeded 900% this month.
HUNDREDS OF THOUSANDS
6 March 2006
The only coins in Zimbabwe (inflation 500% plus) are relics discarded in the dust - all worthless. The current Z$100 dollar note is little better. Until recently, the Z$20,000 dollar bill was the highest denomination, but now a Z$50,000 version is in circulation. It doesn't go far - you won't see much change from buying a single ticket on a Harare commuter train, and one needs a wheelbarrow rather than a purse for carrying pocket money.
ZIMBABWE COAL
Faced with continuing undersupply of diesel fuel, the National Railways of Zimbabwe (NRZ) fell back on steam locomotives to haul Bulawayo commuter trains, but these have been sidelined in recent weeks by coal shortages. The coal used for locomotives is mined from an incline shaft at Hwange colliery which has been subject to flooding.
As far as general coal production at Hwange is concerned, this has fallen by 40%, with only 40 wagons leaving on rail daily against a demand for 120. Difficulty in acquiring spare parts is a major reason, but replacements are expected from China soon.
this kind of think could come to other countires soon but what would set it off?
examples taken from http://www.railwaysafrica.com/news_african/zimbabwe.php
DIESEL, COAL & STAMPS
13 April 2006
Continuing shortages of diesel fuel continue to hamper train operations in Zimbabwe. The steam-worked commuter services at Bulawayo have not solved the problem completely. During the first week of April, inadequate supplies of coal grounded the Garratt locomotives.
Paperwork meanwhile is becoming increasingly expensive. The price of stamps, last adjusted in January 2006, has just gone up to $30,000 for a 20-gram letter within Zimbabwe, $225,000 to South Africa and $300,000 to Europe. The inflation rate exceeded 900% this month.
HUNDREDS OF THOUSANDS
6 March 2006
The only coins in Zimbabwe (inflation 500% plus) are relics discarded in the dust - all worthless. The current Z$100 dollar note is little better. Until recently, the Z$20,000 dollar bill was the highest denomination, but now a Z$50,000 version is in circulation. It doesn't go far - you won't see much change from buying a single ticket on a Harare commuter train, and one needs a wheelbarrow rather than a purse for carrying pocket money.
ZIMBABWE COAL
Faced with continuing undersupply of diesel fuel, the National Railways of Zimbabwe (NRZ) fell back on steam locomotives to haul Bulawayo commuter trains, but these have been sidelined in recent weeks by coal shortages. The coal used for locomotives is mined from an incline shaft at Hwange colliery which has been subject to flooding.
As far as general coal production at Hwange is concerned, this has fallen by 40%, with only 40 wagons leaving on rail daily against a demand for 120. Difficulty in acquiring spare parts is a major reason, but replacements are expected from China soon.
this kind of think could come to other countires soon but what would set it off?
Last edited by Ferretlover on Wed 04 Mar 2009, 13:12:29, edited 1 time in total.
Reason: Merged with THE Oil and Inflation Thread.
Reason: Merged with THE Oil and Inflation Thread.
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gwmss15 - Peat
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Re: Post Peakoil inflation problems
by Dreamtwister » Wed 30 Aug 2006, 11:27:46
$this->bbcode_second_pass_quote('gwmss15', 'a')nd one needs a wheelbarrow rather than a purse for carrying pocket money.
People invariably think I'm exaggerating when I say something like that, but it seems to happen with startling frequency. The same thing happened in Argentina a couple of years ago as well.
The whole of human history is a refutation by experiment of the concept of "moral world order". - Friedrich Nietzsche
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