Are low crude oil and gasoline prices good or bad? (Obama, how much)
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I didn't take the poll, it's not that simple. Remember when gasoline prices were ridiculously high, that was bad for consumers. The lower prices have been a much needed and deserved relieve for individuals and companies. I've certainly enjoyed it, I paid $1.49 today. But now, gasoline prices are starting to get dangerously low. We don't want it to have negative effects on the economy. Also, Saudi Arabia is trying to kill our shale industry, I don't want those bastards to get away with it.
I didn't take the poll, it's not that simple. Remember when gasoline prices were ridiculously high, that was bad for consumers. The lower prices have been a much needed and deserved relieve for individuals and companies. I've certainly enjoyed it, I paid $1.49 today. But now, gasoline prices are starting to get dangerously low. We don't want it to have negative effects on the economy. Also, Saudi Arabia is trying to kill our shale industry, I don't want those bastards to get away with it.
Saudi Arabia was blamed when oil was at $140 also. It wasn't their fault. We demanded they pump all they could and they were but it mattered none on the prices.
If they cut way back would prices go up a bit? Probably a little. A little until the Fed and the markets decide to screw with it again.
I didn't take the poll, it's not that simple. Remember when gasoline prices were ridiculously high, that was bad for consumers. The lower prices have been a much needed and deserved relieve for individuals and companies. I've certainly enjoyed it, I paid $1.49 today. But now, gasoline prices are starting to get dangerously low. We don't want it to have negative effects on the economy. Also, Saudi Arabia is trying to kill our shale industry, I don't want those bastards to get away with it.
"Dangerously low?"
Seriously? Why is it that gas prices were never "dangerously high?" Everyone just chalked it up to supply and demand.
Well, if it was supply and demand then, it's supply and demand now!
Why should we care about the shale oil industry at all. They made out quite well for a nice stretch, relatively speaking. Oil booms go bust in this country. That's the natural cycle.
Too bad for the shale guys, but I prefer my gas to be cheap.
Why should we care about the shale oil industry at all. They made out quite well for a nice stretch, relatively speaking. Oil booms go bust in this country. That's the natural cycle.
Too bad for the shale guys, but I prefer my gas to be cheap.
As you should. All products should be as cheap as the market allows and they would be if we could get government out of the way.
I didn't take the poll, it's not that simple. Remember when gasoline prices were ridiculously high, that was bad for consumers. The lower prices have been a much needed and deserved relieve for individuals and companies. I've certainly enjoyed it, I paid $1.49 today. But now, gasoline prices are starting to get dangerously low. We don't want it to have negative effects on the economy. Also, Saudi Arabia is trying to kill our shale industry, I don't want those bastards to get away with it.
I agree concerning the poll, this is not a yes or no situation. Oil prices this low over a long period will undermine the dollar. As the reserve currency used in the international oil trade, the dollar is indirectly backed by oil, where higher oil prices (but not too high) creates demand for the dollar. OPEC countries that use the petrodollar system for military protection, such as Saudi Arabia, invest some of their profits back into the US economy by buying debt securities and other US products. From the Saudi point of view, the military protection angle is the only thing keeping them in the game, they sell most of their oil to China, the Saudi's don't really have any money to invest in the US anymore while prices are low, and those US securities have not been paying off like they used to, which is related to the '08 crash and US budget deficit problems.
Back in the Desert Storm days when the US bought most of Saudi Oil, the US did give Saudi Arabia military protection from Saddam, and the Saudi's kept the price of oil low for some 10 years afterwards, in appreciation for those efforts by George HW Bush. Now with the Iranian situation and Obama, you have to believe the Saudi's are doing some hard thinking, and OPEC follows the lead of Saudi Arabia for the most part. At this point, the only thing keeping the whole system from unraveling is US military power, protection from the US if Iran goes to war with the Saudi's.
The petrodollar system is brilliant from the US perspective, it works much better than the old Bretton Woods gold backed system did, as it gives more advantage to the US economy. The system was invented by some of the most brilliant minds of the modern era, Dr.Henry Kissinger and Richard Nixon. The system is very resilient, having survived the massive inflation of the late 70's, and massive budget deficits of the Reagan, Bush2 and Obama administrations. But the system can only take so much abuse, we have to STOP borrowing money and balance the budget at home, and make the dollar strong. The massive OMNI-BUS (or whatever that monster was called) spending bill passed by congress in December was dumb, we should not be spending like that while we are still borrowing money.
Last edited by mofford; 01-16-2016 at 12:42 PM..
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None, nada.
