inflation

[slim 1,514]

Sometimes I think my fiance is weird too

If she's anything like my wife, yes she is.

When oil gets to $200 a barrel, at least it should start cutting demand, and boosting output - which should in theory start to lower prices...

Which would be true if today's prices were reflective of the current cost. Prices today are what we "should've" seen at about $90/barrel. By the time it all catches up, we may see $10/gallon gas.

Your theory may hold true, but if gas prices climb to $10/gallon before they start to fall again, it's unlikely they'll ever fall back under $4/gallon.

Gas now is "cheap."

[Satellite 1]

When oil gets to $200 a barrel, at least it should start cutting demand, and boosting output - which should in theory start to lower prices...

I wish this was true. But in reality, when demand drops so will production both in oil producing and refining thus artificially maintaining a high price as demand falls. The oil folks aren't idiots and have now grown accustomed to the high profits.

The real solutions lies in alternative energy for our vehicles, mainly the electric car that costs under $25,000, gets 300 miles to the charge, is easy and cheap to dispose of, and runs under warranty for 10 years. Secondly, developing nations like China, India, and even Russia, lifts their government subsidies on gasoline, thus forcing all their citizens to cut back.

Edited July 8, 2008 by Satellite

[Neonred 3,460]

When oil gets to $200 a barrel, at least it should start cutting demand, and boosting output - which should in theory start to lower prices...

I wish this was true. But in reality, when demand drops so will production both in oil producing and refining thus artificially maintaining a high price as demand falls. The oil folks aren't idiots and have now grown accustomed to the high profits.

The real solutions lies in alternative energy for our vehicles, mainly the electric car that costs under $25,000, gets 300 miles to the charge, is easy and cheap to dispose of, and runs under warranty for 10 years. Secondly, developing nations like China, India, and even Russia, lifts their government subsidies on gasoline, thus forcing all their citizens to cut back.

With gasoline prices in Russia around $3.80 a gallon their not doing a great job with government subsidies for a petroleum producing nation.

[Satellite 1]

With gasoline prices in Russia around $3.80 a gallon their not doing a great job with government subsidies for a petroleum producing nation.

Perhaps that is what the price at a Moscow gas station is selling it for, but my relatives are doing just fine getting diesel on the black market at 7-8 rubles a liter.

[Bobalouie 0]

With gasoline prices in Russia around $3.80 a gallon their not doing a great job with government subsidies for a petroleum producing nation.

Perhaps that is what the price at a Moscow gas station is selling it for, but my relatives are doing just fine getting diesel on the black market at 7-8 rubles a liter.

The Russian government subsidizes the black market?

[Neonred 3,460]

With gasoline prices in Russia around $3.80 a gallon their not doing a great job with government subsidies for a petroleum producing nation.

Perhaps that is what the price at a Moscow gas station is selling it for, but my relatives are doing just fine getting diesel on the black market at 7-8 rubles a liter.

No, that is the price in Rostov, not Moscow. And you clearly said gasoline, NOT diesel. Two very different things.

[Satellite 1]

The Russian government subsidizes the black market?

When no effective controls are implemented or enforced, it's hard to argue that the government comes out clean.

[Neonred 3,460]

The Russian government subsidizes the black market?

When no effective controls are implemented or enforced, it's hard to argue that the government comes out clean.

So who is dirty here, the government or your relatives?

[Satellite 1]

So who is dirty here, the government or your relatives?

Oh they are not alone, trust me on that one.

[workin4somethin 0]

Just wondering what others here are hearing and how you are responding.

Real inflation in Moscow during the past year = 40%.

And neither Medvedev nor Putin are popular with a majority.

[slim 1,514]

And neither Medvedev nor Putin are popular with a majority.

Sounds familiar.....

[workin4somethin 0]

And neither Medvedev nor Putin are popular with a majority.

Sounds familiar.....

Yeah. Last month I met a Brit who now lives in Moscow. He was asking how we Americans could allow our executive branch of government to ruin our country's economy, individual freedoms, reputation, etc. (basically 200+ years of progression) without impeaching the inept president and vice-president. I suggested that he sit back and watch the fireworks until the end. He then said that what he fears most is that with the Bush+Cheney+Evangelicals' agenda the end was coming soon - the end of the world, that is. Perhaps a bit of high inflation is not so bad after all.

[russ 1]

Historically, OPEC has not been very good at cutting production when prices drop. Record prices are about the only thing that will prod OPEC members to develop or exploit fields. When prices drop, the reaction is typically to produce more oil, since the petro-states are addicted to money, as much as we are addicted to oil.

After the oil shocks in the 70's, oil was very cheap for a long time.

I wish this was true. But in reality, when demand drops so will production both in oil producing and refining thus artificially maintaining a high price as demand falls. The oil folks aren't idiots and have now grown accustomed to the high profits.

[eekee 182]

Just wondering what others here are hearing and how you are responding.

Real inflation in Moscow during the past year = 40%.

And neither Medvedev nor Putin are popular with a majority.

Where did you get your information from?

http://www.russiavotes.org/president/presi...fe50dcdf4ff#202

here the figures from 2 weeks ago are 69% (Medvedev) and 80% (Putin). Seems like a healthy majority to me.

[workin4somethin 0]

The Russians I talk to in Russia view Medvedev, Putin, Bush & Cheney as the same type (bad). They think Putin has made their country worse (less democratic; and, becoming nearly impossible for many economically), and they think Medvedev will widen the disparity Putin has created. Also, a member of the DUMA told me four days ago that there was probably only one person in the DUMA that thought Medvedev should have become the new president. These are facts and not government-approved statistics.