1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Greetings Guest!!

    In order to combat SPAM on the forums, all users are required to have a minimum of 2 posts before they can submit links in any post or thread.

    Dismiss Notice

Is the Cost of Oil Affecting You?

Discussion in 'Off Topic' started by Taylor, Mar 8, 2011.

  1. Taylor

    Taylor Former Stratics CEO (2011-2014)
    Professional VIP Stratics Veteran Supporter Alumni Campaign Benefactor Alumni

    Joined:
    Oct 21, 2008
    Messages:
    8,023
    Likes Received:
    1,714
    Tensions in MENA have driven up the cost of oil dramatically. Last week, the U.S. hit a 29-month high. This week, we reached the highest priced oil in the month of March in all time.

    Has this affected anyone? I have to drive to Washington, DC a couple of times per week for school. My monthly gas bill has gone up at least $50 as a result. Moreover, where I live, there's really no option for public transportation, so I'm out of luck.
     
  2. Aran

    Aran INFRACTION INFRACTION INFRACTION!
    Stratics Veteran Stratics Legend -A-

    Joined:
    Apr 1, 2000
    Messages:
    14,717
    Likes Received:
    1,021
    I've had to cut back on joyriding in my convertible because it takes 93 octane.

    Now I only do 100 miles at a time instead of 200.
     
  3. Taylor

    Taylor Former Stratics CEO (2011-2014)
    Professional VIP Stratics Veteran Supporter Alumni Campaign Benefactor Alumni

    Joined:
    Oct 21, 2008
    Messages:
    8,023
    Likes Received:
    1,714
    What a shame. :p
     
  4. Hunters' Moon

    Hunters' Moon Grand Inquisitor
    Stratics Veteran

    Joined:
    Oct 19, 2004
    Messages:
    4,271
    Likes Received:
    120
    The cost of oil will effect us in many ways. Not just at the gas pump. I have already noticed that gorcery prices at local stores have gone up the past two weeks. Artifical price gouging ftw....for oil barons.
     
  5. Taylor

    Taylor Former Stratics CEO (2011-2014)
    Professional VIP Stratics Veteran Supporter Alumni Campaign Benefactor Alumni

    Joined:
    Oct 21, 2008
    Messages:
    8,023
    Likes Received:
    1,714
    Tell me about it. I'm trying to buy plane tickets. -_-
     
  6. Aran

    Aran INFRACTION INFRACTION INFRACTION!
    Stratics Veteran Stratics Legend -A-

    Joined:
    Apr 1, 2000
    Messages:
    14,717
    Likes Received:
    1,021
    Blame the speculators, not the producers.
     
  7. Taylor

    Taylor Former Stratics CEO (2011-2014)
    Professional VIP Stratics Veteran Supporter Alumni Campaign Benefactor Alumni

    Joined:
    Oct 21, 2008
    Messages:
    8,023
    Likes Received:
    1,714
    That's kind of true, tbh. Both can drive up prices.
     
  8. Hunters' Moon

    Hunters' Moon Grand Inquisitor
    Stratics Veteran

    Joined:
    Oct 19, 2004
    Messages:
    4,271
    Likes Received:
    120
    I agree. But I am sure the businessmen that deal with oil commodities are more than happy to let the "speculators"(fear mongers,really) to talk on the major media outlets. It's a win-win situation for them.
     
  9. Vince

    Vince Journeyman
    Stratics Veteran Alumni

    Joined:
    Feb 22, 2011
    Messages:
    244
    Likes Received:
    75
    Think of it this way, it may cost more to get oil atm, but when the markets in the middleeast really opens up, it will more than even out the difference.
     
  10. Hunters' Moon

    Hunters' Moon Grand Inquisitor
    Stratics Veteran

    Joined:
    Oct 19, 2004
    Messages:
    4,271
    Likes Received:
    120
    ....and if China and Russia have it their way and go thru with plans to replace the US dollar as the worlds reserve currency(eventually),we will be paying upwards of $8 a gallon,or more, for unleaded regular gasoline. As we all know,as the price of gas goes,so goes everything else.

    Google search this: "Shipment of 800 Billion in New Currency AMERO to China in Advance"
    ....and decide for yourself whats about to happen very soon. It's not going to get better.
     
  11. Aran

    Aran INFRACTION INFRACTION INFRACTION!
    Stratics Veteran Stratics Legend -A-

    Joined:
    Apr 1, 2000
    Messages:
    14,717
    Likes Received:
    1,021
    *snort*
     
  12. Longforge

    Longforge Guest


    Would you happen to be a fan of Alex Jones? Just wondering...

    I don't fear 3rd World artificially inflated currency/economies... China China China! Yeh - a communist country is going to lead the world... right?
     
  13. Longforge

    Longforge Guest

    Oh and I forgot to add... pretty much everyone else in the world pays $8.00 per gallon for gas... and yes, that would validate your statement of if our currency was replaced as the worlds reserve currency of "higher prices".

    In essence all it would take for that to happen is a junk bond rating "highly highly improbable" and an overnight 11% devaluation of our currency. We pay staggered interest - etc... on our debt.

    Example: If we have 5 trillion in debt - we are only really paying about 200-250 billion a year (probably less) to repay it. Thats including full notes that are due. So dont get particularly sucked in like we're in a danger zone... yearly entitlements are far more expensive than our debt is.

    One problem most conspiracy theorists dont realize on this matter is that China holds "trillions" of our debt. Thinking that they would promote or anticipate such a move of currency would shut their economy down overnight. The United States is still a large portion of their economy. The devaluation to their currency with our currency being replaced would be a greek tragedy (ie: trojan horse). They'd be paying $40.00 per gallon of gas.

    It basically fits right in to the exact reason you will never see us at war with China - it would economically destroy the crap out of both while everyone else ate popcorn and took over.
     
  14. Cirno

    Cirno Purple Pony Princess
    Stratics Veteran Alumni

    Joined:
    Dec 24, 2009
    Messages:
    961
    Likes Received:
    224
    You may be surprised at how quickly their influence around the world is growing.
    For many reasons, including their work ethic, and the lack of understanding the rest of the world has for their societal structure.
    If you are interested in learning more about it, there is a free TED talk on the subject, located:
    Martin Jacques: Understanding the rise of China | Video on TED.com
     
  15. Longforge

    Longforge Guest

    That was a very interesting watch. It is very fundamentally sound.

    There are major hurdles and principals that will not support China taking "the" top seat.

    1. Communism. They probably will evolve out of it at some point, but frankly, you can't run a country of 1.3 billion people without it. They are too big for thier own good.

    2. Overpopulation. As mentioned before - 1.3 billion people cannot produce moderate products vs. cheap crap that China is renowned for and compete - while feeding growth. They are rising so fast because of their currency manipulation and that their production capabilities and costs mirror that of the African Congo.

    40% of the chinese are rural farming communities that still live in the stone age. (That's not a knock - I'd love that kind of lifestyle).

    China is built of cheap crap, the ability to mass produce it and currency devaluation to expand trade deficits with countries that is worth over a trillion dollars.

    Reverse that into American hands and our minimum wage would be $30.00 per hour with 2% unemployment rates.

    I'm going to reliably stick with the fact that 1.3 billion people "rising to the top" is a completely artificial state of manipulation. They couldnt stand on even ground for one minute or survive a +$1 trade deficit - moreless they could'nt survive a $1 billion trade deficit in their favor.

    That same reasoning is why Wall Street and our Government - with the rest of the world isnt even contemplation a reserve currency change or "china's gonna be big and bad"... not going to happen - period.
     
  16. Cirno

    Cirno Purple Pony Princess
    Stratics Veteran Alumni

    Joined:
    Dec 24, 2009
    Messages:
    961
    Likes Received:
    224
    I love TED talks.
    Even if I don't learn anything from one, I still come away with my brain tickled.

    I'm going to tag Syrus for this discussion, because he just proved to me he knows more than I do about it ;)
     
  17. Taylor

    Taylor Former Stratics CEO (2011-2014)
    Professional VIP Stratics Veteran Supporter Alumni Campaign Benefactor Alumni

    Joined:
    Oct 21, 2008
    Messages:
    8,023
    Likes Received:
    1,714
    China is one of my only areas of expertise, hehe.

    I think that China's growing economic and political influence is pretty evident. You won't find academics debating that China is a rising super power. However, I think the West views China very differently than China views China. There's a saying--and I'm paraphrasing, because I don't remember it exactly--that goes something like this: in response to the claim that China is "Fragile Superpower," the West asks, "What fragility?" and China asks, "What superpower?" Our perception of China is that it is increasingly powerful; China's perception of China is that it is increasingly unstable. (For evidence of the phenomenon, consider how it has responded to the Jasmin Revolution).

    Will China ever outweigh the U.S.'s counter balance? I think that it has the potential to, if it continues to liberalize its economy and address some of its social challenges. Longforge is correct that overpopulation is a serious problem for China, because it leads to high levels of unemployment, lowers the minimum wage, consumes limited resources, etc. Moreover, China's populace is aging and there is no social safety net, which will lead to obvious challenges. The PRC is also famously bad at innovation: they much prefer to steal Western technology, which puts them always a step behind. Still, I do not think that it is fair to catagorize China as a "communist" nation. They have been on a steady path toward liberalization since the late 1970s. Their economy has averaged staggering GDP growth as a result of these reforms. Even during the economic downturn (when America's economy shrunk), China's GDP growth continued to hover around 10%. Pretty astounding.

    That said, I do not see China ever superseding the Western system as a whole. Western nations have successfully drawn China into the Western system, complete with all of the restrictions and expectations required of the system. The more invested China becomes in this system, the more it demonstrates its willingness to abide by liberalized norms. Consider how hesitant China has been to offer dissenting views in meetings of the UN Security Council.

    In sum, I do think that China has a lot of potential, but I do not think that the fight is over. It's still anybody's game. How will the West deal with its problems? How will China deal with its struggles? The answers to these questions will likely determine the outcome.
     
  18. Longforge

    Longforge Guest

    Pay off the debt to China.

    Close off the trade deficit.

    Impose hefty tarriffs on their exports.


    =

    China is sent back to the 1500's.
     
  19. Taylor

    Taylor Former Stratics CEO (2011-2014)
    Professional VIP Stratics Veteran Supporter Alumni Campaign Benefactor Alumni

    Joined:
    Oct 21, 2008
    Messages:
    8,023
    Likes Received:
    1,714
    I would like to see of pay off our debt and narrow our trade deficit. The currency manipulation also needs to be addressed eventually. Some folks also want to impose heavy tariffs on their exports, but I'm of the opinion that this would hurt us more than help us. People argue both ways. I suppose it depends upon whether you see China as a military threat. Honestly, considering that they're struggling to hold their own affairs together, I'm not too worried about the military element. Also, ever since the Cultural Revolution, the Chinese have been unnaturally afraid of any sort of disruption from normalcy. Besides, they're happy to compete with us economically, methinks. :)
     
  20. Longforge

    Longforge Guest

    I agree exactly with what a lot that you say...

    I just really think nobody wants to admit that the pillars of their economy are completely cheap and mostly useless crap and they call that "competition". And the only reason they are what they are now is because of the astronomical trade deficits with any country that they do business with. It is a completely artifical system that cannot possibly flourish and permiate.

    Example: Housing Bust
     
  21. Taylor

    Taylor Former Stratics CEO (2011-2014)
    Professional VIP Stratics Veteran Supporter Alumni Campaign Benefactor Alumni

    Joined:
    Oct 21, 2008
    Messages:
    8,023
    Likes Received:
    1,714
    他們有很多的麻煩。That much is certain.
     
  22. Longforge

    Longforge Guest

    They do indeed! :)


    I'm not anti-Chinese, Im anti-BS.

    This country seemed the fount of wealth and unstoppable wealth - where even a dishwasher could own a 300k house...

    We learned... the BS does have a limit... and a bad consequence! :gee:
     
  23. Aran

    Aran INFRACTION INFRACTION INFRACTION!
    Stratics Veteran Stratics Legend -A-

    Joined:
    Apr 1, 2000
    Messages:
    14,717
    Likes Received:
    1,021
    And then 90% of America can't afford to buy anything, the country collapses into a state of panic, everyone involved in the decision, likely all Democrats, gets lynched...


    Actually, that doesn't sound so bad when you get to the positives at the end.
     
  24. Flora Green

    Flora Green Guest

    Yeah.