Don't worry there is no inflation! 10 year at 4%, Oil at $87

Discussion in 'Economics' started by Financial Saint, Apr 6, 2010.

  1. The U.S. government is telling us, there is no inflation and that they are going to keep the rates low. Does this make any sense? (Maybe we should all move to California and smoke POT since it’s going to become legal)
  2. It's all part of the re election plan for the dems. All data and fed comments will only support a rising stock market, got to shape public opinion.

    The Republicans tried the same thing in 2006, it did not work. Boots on the ground not fealing the love.
  3. the equity market is taking this as a sign of strong economic recovery.
  4. pismo10


    It is just more bubbles, bubble here, bubble there, stocks, then commodities, whatever. Zero percent money is driving it all...
  5. No, theres no inflation.
    There is deflation, due to weak demand.

    Morons are now dumping their T-Bonds (dropping prices, rising yields) to get into stocks, when they should be doing the opposite.
  6. where do you see weak demand outside housing? auto sales are strong, retailers are on fire,resturants are strong,electronics are strong. even housing is showing strength.
  7. Peak oil man shifts focus to peak price, demand
    Barbara Lewis
    BALLYDEHOB, Ireland
    Tue Apr 6, 2010 1:16pm EDT

    BALLYDEHOB, Ireland (Reuters) - The economic shock of global recession has led a prime exponent of the theory conventional oil output has peaked to shift his view of the consequences, but he still thinks the world has to go green.

    Retired petroleum geologist Colin Campbell, who worked for major oil companies as well as smaller firms, has long been associated with the belief the world's oil supplies are dwindling.

    He does not waver from that and dismisses the argument of the so-called optimists that technology will manage to keep eking out more and more oil to keep pace with rising demand.

    What has changed is his opinion of the price impact and implications for fuel consumption after the spike of July 2008 to nearly $150 a barrel was followed by world economic recession, a deep drop in fuel use and a crash in oil futures to just above $30 in December 2008.

    "I have changed my point of view about future prices," said Campbell, who used to think the peak in conventional oil production, which he believes happened in 2005, would lead to a relentless price surge.

    Instead, the record rally led to a peak in demand in the developed world.

    "Peak oil drives prices up in the first place. It has its own mechanism. We're sort of at peak demand right now," Campbell told Reuters from his home in the village of Ballydehob, West Cork. "I think presently the price limit is about $100."

    For those who have painted alarming pictures of civil unrest as the world economy is forced to move away from conventional fuel and pay high prices for it in the interim, an inbuilt price mechanism to limit demand and move the world to other forms of energy should be a good thing.

    "We have no alternative but to go green," Campbell said.

    But he does not think reduced demand is enough to offset the gravity of peaking supply. He still sees a possibility of social anger as millions are forced to change their lifestyles in a too-sudden structural shift from economic growth driven by cheap conventional fuel.....
  8. S2007S


    How anyone can believe bubble ben bernanke is beyond me, he lied about the past few bubbles this economy has been through and will lie now about whether or not this economy is headed towards inflation or deflation, they wont even tell you where were headed, its all a fucking guessing game from here on in, the economy is being propped up to make it feel there is demand for goods and services when all it is,is trillions of worthless dollars entering the system, bubble ben bernanke is going to keep rates at zero % for a as long as he can, bubbles are forming right now, oil at $80+ is in a bubble at this very second, if it isn't I am kind of worried to to see where it will be trading when unemployment rates get back down to 5-6% and our economy starts producing 16 million+ cars a year again, forget it, by that point oil should be over $200 a barrel. Stock prices are being inflated, as well as housing, they put a false bottom in housing by slowing foreclosures and offering free handouts to everyone and anything, so I would lean more towards an inflationary environment.
  9. S2007S


    By the way, bubble ben bernanke lied about the last housing bubble by ignoring it all together and went as far as to yell out that sub-prime was contained.....he is telling more lies today as well, so don't believe this turn around, the biggest credit crisis in history doesn't disappear in a few months.

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  10. If im not mistaken, to this day he does not think that those prices were bubble prices. Even after the pop. He is trying to get prices back up there.
    #10     Apr 6, 2010