When is the "Oil Bubble" going to burst?? (loan, conversion)

[Humanoid]

So that is problem one, two it is a fact that they (the treasury) is printing more money, that is not a opinion

Dude....seriously. This is just dumb. 1.) The treasury is always printing money, after all bills go out of circulation all the time 2.) The fed controls the monetary base not the treasury, 3.) Most "money" isn't created on the printing press so the treasury isn't really where you'd look in the first place.

Monetary inflation is caused by an increase in the monetary base or the velocity of the monetary base. The Fed is currently increasing the monetary base at a very slow rate (around 1.1% a year). Now their are other issues like the total money supply, but that has absolutely nothing to do with paper money! So suggesting it is the government's printing press that is causing the problem is naive at best. But many would argue that true inflation only happens when you increase the monetary base and this is simply not happening contrary to popular urban myths.

Also, the CPI for April that just came out are pretty tame.

So, please "Do some research".

[HappyTexan]

Yup..the CPI came out today. Inflation is tamed and gas actually went down.

[Niners fan]

Originally Posted by Humanoid

There is nothing unproven about the fact that oil a finite resource, as a result at some point it will peak.

Except that the peak oil theory assumes there won't be any advancements in technology that allow us to create oil.

From Discover Magazine, 2006:

Anything Into Oil

Turkey guts, junked car parts, and even raw sewage go in one end of this plant, and black gold comes out the other end.



Anything Into Oil | Alternative Energy | DISCOVER Magazine

[jazzlover]

Originally Posted by Humanoid

Also, the CPI for April that just came out are pretty tame.

Saying the CPI, which excludes food and energy costs, "is pretty tame" is akin to saying that the Titanic is is good shape after it hit the iceberg because the band still sounds good. Anyone with a scintilla of perception can tell that inflation is anything but "tame"--all it takes is one trip to the grocery store or gas station.

As to monetary policy, it's clear that a lot of people don't think much of the US's current policy. Inflating commodity prices, the dollar weakening against virtually every currency, talk of decoupling oil markets from the dollar, continuing ugly trade deficits, and a spiralling US debt--all that says the something is very much awry in US economic and monetary policy. I'm continually amazed how some people continually try to put lipstick on this pig. No matter what pretty shade of lipstick it is, it is still a pig!

[Humanoid]

Saying the CPI, which excludes food and energy costs, "is pretty tame" is akin to saying

Gotta love these urban myths. CPI does not exclude food and energy. See this if you are interested:

Consumer Price Index Summary

The CPI is published monthly, but core-inflation is often used as a better measure of true inflation. Core-inflation figures do exclude energy and food.

all that says the something is very much awry in US economic and monetary policy.

I never said everything is peachy, but having a correct understanding of the problems is important. The weakening of the dollar is not part of the problem, its part of the solution.

Except that the peak oil theory disregards any advancements in technology that allow us to create oil.

I'm sure some disregard it, but the smart folks talking about peak oil know about alternative sources of oil/fuel. The problem with all of them is once you start to use them on the scale required to replace oil the price because huge.

[Wild Style]

Originally Posted by jazzlover

Saying the CPI, which excludes food and energy costs, "is pretty tame" is akin to saying that the Titanic is is good shape after it hit the iceberg because the band still sounds good. Anyone with a scintilla of perception can tell that inflation is anything but "tame"--all it takes is one trip to the grocery store or gas station.

As to monetary policy, it's clear that a lot of people don't think much of the US's current policy. Inflating commodity prices, the dollar weakening against virtually every currency, talk of decoupling oil markets from the dollar, continuing ugly trade deficits, and a spiralling US debt--all that says the something is very much awry in US economic and monetary policy. I'm continually amazed how some people continually try to put lipstick on this pig. No matter what pretty shade of lipstick it is, it is still a pig!

check this out link

[victorianpunk]

Originally Posted by Humanoid

And what would stop Exxon or any other company for that matter buying coal infrastructure in this country?

Because it is controled by the coal mining companies, and not the oil companies and their allies.

If they did it before they started to magically make oil at $35 it could be purchased very cheap. Also, how are coal mines going to start refining oil?

Companies are run by individuals who can only see up to their own lifetimes, the result is that they don't do things in the very long term. Also, coal, like oil, needs to be refined. Coal companies already have huge plants that process coal to burn cleaner and are making new ones every day (clean coal is only going to grow in popularity) it would not be too hard to imagine a company going from refining coal in a huge plant to refining oil in a similar plant.

Regardless, companies are interested in one thing - profits.

And if Exxon and company invested in oil-from-coal, you can be guaranteed that OPEC would tell them that they would stop doing business with them. The same way OPEC always lowers the price of oil to stop the world from investing in new forms of energy, they would do everything to stop Exxon and co. from investing in new oil from coal. Think about it: is it cost effective to put millions into building plants and all that jazz at the expensive of loosing ALL BUSINESS FROM OPEC until the said plants start shelling out oil? They would go years with no profits.

If coal rich companies, like the US, suddenly also became oil-rich, than OPEC would be out of business. Stop looking at them like they are Henry Ford and start looking at them like they are Tony Soprano, and you'll have the right idea.

I know conspiracies are so much more popular than economics

Yahh, take OPEC they don't REALLY exist but are a conspiracy thought of by some late night internet nerds who all voted for Ron Paul.

Just google "Kerrick Process" and tell me what pops up. It is a real process that actually does indeed work.

As for the price of coal going up as a result, keep in mind that coal is EXTREMELY plentiful in this country. They can only grow so much coal for Ethanol, but coal is everywhere...also, ethanol is expensive because it does not transport well like oil does, as the molecules are differenta and it cannot be moved via pipelines like crude can. Coal, however, can be mined and "juiced" at the same place and than shipped via pipeline.

[victorianpunk]

Originally Posted by Philip T

Sure, very familiar with that. Had to turn down that project because the damage(s) being done so out-weighed the benefit.

Sad truth is have crossed the threshold where staying on oil (and the various kluges such as Tar Sands) that it would be less effort and expense to go off oil than stay on.

There is no lack of technology for the US go off of oil. Just a Whole Bunch of Will [NOT] Power. Try not to confuse Will Not with Can Not.

I agree that we need to IMMEADITLY wean our way off oil, but that needs to be done over a period of a couple of decades at LEAST. It took us awhile to get into this mess, and it will take us awhile to get out of it as well. In the meantime, we need to use nonconventional oil to stay affloat, while we slowly get off oil and the internal compustion engine FOREVER.

[victorianpunk]

Originally Posted by Humanoid

I never said everything is peachy, but having a correct understanding of the problems is important. The weakening of the dollar is not part of the problem, its part of the solution.

Exactly how is crack anyway? I never smoked it but I always wanted to know what it's like.

[Huckleberry3911948]

america has had the good life for so long they forgot what hard times are.
see all these 3rd world countries prospering? those are our jobs and and our good life bleeding away. gas and housing prices are only symbols of the nothing. all that having your own house your own apt, your own car eatin out all the time, that is fading away.
i dont see anybody in DC bursting into tears about this, nope. uinions gave us our prosperity and absence thereof will take it away.