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OPEC President Chakib Khelil predicted that the price of oil will climb to $170 a barrel before the end of the year, citing the dollar's decline and political conflicts.
I bet that throws a monkey wrench into the war machine.
Airlines are in big trouble already, and if the cost of jet fuel keeps rising, it's just going to get worse. I wouldn't want to be a pilot or a flight attendant now!
The federal reserve is caught between a rock and a hard place. If interest rates are raised, then the housing slump is going to get worse, but inflation is controlled, as well as the sliding value of the dollar. If interest rates are lowered, housing might get a little better, but we'll be paying a lot more for oil with devalued dollars. What a choice!
If peak oil is real, can't we expect to see the nationalization of it in the coming years? Global fascism of resources? An anti globalization trend? Wars?
It might be time to purchase a reflux still and buy/convert my vehicle to ethanol. Running whiskey might be a good way to supplement income too. Anyone up for some hooch? Drink away your worries with good ole stump joice.
Airlines are in big trouble already, and if the cost of jet fuel keeps rising, it's just going to get worse. I wouldn't want to be a pilot or a flight attendant now!
The federal reserve is caught between a rock and a hard place. If interest rates are raised, then the housing slump is going to get worse, but inflation is controlled, as well as the sliding value of the dollar. If interest rates are lowered, housing might get a little better, but we'll be paying a lot more for oil with devalued dollars. What a choice!
I read an article that if this keeps up as many as 70% of all us airlines will either be bankrupt or merged within the next 24 months. Also, as many as 70% of all US markets who are serviced by airlines will cease to receive service!
You have to keep in mind that far less people are traveling, flights are not going out full and with the cost of fuel doubling and higher, there is no way they will all be able to survive in this. Three years ago it costs a boeing 737 about $7,400 in fuel to fly across the US coast to coast, NY to LA. Now it costs $22,600 and rising. Seats are 1/2 full and prices are still about the same. When airlines try and raise prices, nobody flies at all, making it worse. They are trapped in this environment and nothing will help.
The article went on to predict, that airlines will go down one by one, no way around it. Then the few surviving will merge, cut flights and destinations and triple pricing. No more $400 cross country flights. Try $1500 on up with little selection. Welcome to the new America!
If this happens what happens to our 2 Trillion Dollar Travel Industry? Millions of Americans work in the travel and tourism business, what happens to them? Of course as they are put out of work and Airlines and Hotels close the ripple effect on our economy will be incredible.
Can you say ECONOMIC DEPRESSION?
Quote:
Originally Posted by travelmate38
I read an article that if this keeps up as many as 70% of all us airlines will either be bankrupt or merged within the next 24 months. Also, as many as 70% of all US markets who are serviced by airlines will cease to receive service!
You have to keep in mind that far less people are traveling, flights are not going out full and with the cost of fuel doubling and higher, there is no way they will all be able to survive in this. Three years ago it costs a boeing 737 about $7,400 in fuel to fly across the US coast to coast, NY to LA. Now it costs $22,600 and rising. Seats are 1/2 full and prices are still about the same. When airlines try and raise prices, nobody flies at all, making it worse. They are trapped in this environment and nothing will help.
The article went on to predict, that airlines will go down one by one, no way around it. Then the few surviving will merge, cut flights and destinations and triple pricing. No more $400 cross country flights. Try $1500 on up with little selection. Welcome to the new America!
Yes, we are caught between Iraq and a hard place, but the dollars' free for all slide hasn't really proven beneficial, and raising interest rates won't necessarily hurt the housing market, since short term and long term interest rates don't always go in tandem. Plus we've been seeing inflation in so many areas, and the official inflation rates may be a little low since they supposedly don't count fuel or housing...Raising interest rates will likely cool down inflation....usually in an inflationary environment the economy is just pumping along, maybe even a little too fast, but that's not the case now. More people are unemployed, and those that are employed aren't typically seeing much in the way of wage increases...I sure wouldn't want to be president next January. That'll be one big mess they'll be stepping into.
If this happens what happens to our 2 Trillion Dollar Travel Industry? Millions of Americans work in the travel and tourism business, what happens to them? Of course as they are put out of work and Airlines and Hotels close the ripple effect on our economy will be incredible.
Can you say ECONOMIC DEPRESSION?
If you read my previous posts, I've been screaming depression all along, while everyone else seems to just think this will be another 2000 recession. Not so. EVERYTHING is weighing on the economy, not just oil. Go ahead and pick anything and it's bad. Of course you could argue energy is doing well, but that is half the problem. Speculators in that area, make a few bucks while the rest of society plumets into the block hole.
Dow 7000.... Economy comes to a complete stand still, followed by a world wide depression. Unless we change our direction immediately, if it is not too late already
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I wouldn't want to be a pilot or a flight attendant now!
