Originally Posted by driersheets
thank god im not the only one thinking this...
This reminds me of the "fed reserve zeitgeist vid" thread that i posted on. The misunderstanding of how the Fed works is mind boggling. That tied with the over emphasis being placed on the feds influence on the money supply vs the reason for its influence, specifically the reasonings for influencing the money supply. if there is any question of the Feds positive influence on the economy, look at Greece, would it be wrong to assume that Greece MAY have mitigated some of these negative effects through true expansionary policy, were they able to of course (thanks EU). Im absolutely not making light of the Greek spending problem as it IS the reason for the season there, only postulating that it could have been less bad.
as far as the oil goes, BTM is 100% correct, when you speak about solar power etc you dont say its to expensive, you say its not competitive. Its semi viable but just like wind mills its useless in the current environment hence why they are having to be subsidized (cough cough sylndra). As BTM states oil prices will follow market value as with less oil comes higher production costs coupled with higher investment required. Along with the risk that goes along with increasingly difficult production necessitates higher returns received by investors thus leading to increased price. Javi, you speak as if the oil is simply sitting on the surface easy to access and only a slave to the fact that its finite. when one takes into account the difficulties of production the price will very spread costs throughout a longer time, thus NOT leading to a sudden, "shit were running out" moment like you said.