I remember thinking the world was going to end when it hit $2
Saudi Prince Alwaleed says falling oil prices 'catastrophic'
- Thread starter ☑︎#VoteDemocrat
- Start date
not anymore
Ghost_In_A_Shell
Talk No Jutsu
So no one is going to talk about the Deflation thing that's going on here?
Domingo Halliburton
Handmade in USA
especially after all the qe it is concerning. I think the markets ran a little fast and they're correcting. I think Europe should be more worried about it than the us right now.
I've seen shyt like this before and had it happen to meThe gouging here is ridiculous... I paid about $3.40 at Costco yesterday and I swear I just saw a 76 station that was charging $5.95 a gallon in Brentwood
Felt like I got raped at the pump afterwards, because my tank was on E.
Ghost_In_A_Shell
Talk No Jutsu
I don't know......I just don't know. We have been focusing on the wrong end of the equation, honestly-it was deflation that we had to worry about. And right now, our situation looks a little too much Like the year 1937 or the japan markets. Its like the calm before the storm
But I read a lot of Paul Krugman, so who knows.
Domingo Halliburton
Handmade in USA
its not all bad cheaper gas means more consumer spending. People did dump all their TIPS today. So looks like inflation is not a worry for wall street.
If Russia would pull back a little I think this may calm some of the volatility in the oil markets.
break it down for me
Gas was $1.75 in December 2008/January 2009 after the markets crashed.
I was a sophomore in college and that had me feeling
since that previous July gas was about $4 a gallon
The gouging here is ridiculous... I paid about $3.40 at Costco yesterday and I swear I just saw a 76 station that was charging $5.95 a gallon in Brentwood
Passed by a Costco at the DC/Maryland line and it was $2.99 this morning
Ghost_In_A_Shell
Talk No Jutsu
break it down for me
As focusing on the wrong end of the equation, people have been looking at the model economic model (liquidity trap and Hickisan IS-LM model) misinterpreting it or they just do not understand (my bad for the wording and I am reading more into the subject). I am going to try and explain as best I can.
Let me begin with the definition of the Liquidity Trap - the economic Phenomena in which ( a situation described first Keynesian economics ) low / zero interest rates fail to stimulate consumer spending and monetary policy becomes ineffective. In this situation, an increase in the money supply could fail to increase spending because interest rates can't fall further.
A liquidity trap means consumers' preference for liquid assets (cash) is greater than the rate at which the quantity of money is growing. So any attempt by policymakers to get individuals to hold non-liquid assets in the form of consumption by increasing the money supply won't work.
One of the indications of this phenomena would be low interest rates.
SubjectShort-term interest rates, Per cent per annum
UnitPercentage
FrequencyAnnualQuarterlyMonthly
Time20112012201320132014
Q2-2013Q3-2013Q4-2013Q1-2014Q2-2014Q3-2014Jan-2014Feb-2014Mar-2014Apr-2014May-2014Jun-2014Jul-2014Aug-2014Sep-2014
Country
United States
0.300.28..0.20............................
Also, another one of characteristics of a liquidity trap is the fluctuations in the money supply (caused by the increase in liquidity into the private banking system )........
.......................that fail to translate into fluctuations in price levels.
Certain economist/ politicians misread and wrongly predicted about 'hyper-inflation'( remember Clif Assnes and co. writing that whole letter to Ben Bernake about the mentioned subject of inflation) -many due to either saving there intellectual hides/jobs , pedaling to there big business sugar daddies or they simply did not understand the Liquidity Trap problem. or maybe a combination of the three.
Because of that ,we have a combination of the following:
(our version, of course)
and
(we already had that)
.......................Wait a second, aren't they both the same thing?
Here are further articles for investigation-
https://www.google.com/url?sa=t&rct...cQy69gA3JYy1Rvggtdjt4IA&bvm=bv.77648437,d.cWc
https://www.google.com/url?sa=t&rct...Pw7tTbuNhK0-b1x9pKC2H6A&bvm=bv.77648437,d.cWc
http://delong.typepad.com/sdj/2014/...global-warming-are-insane-why-do-you-ask.html
https://ideas.repec.org/p/ris/nobelp/2008_003.html
https://ideas.repec.org/p/red/sed011/1166.html
http://qje.oxfordjournals.org/content/127/3/1469.short
http://krugman.blogs.nytimes.com/?m...s&version=Blog Post&contentCollection=Opinion
http://www.nytimes.com/2014/10/16/opinion/potlatch-for-politicians.html?rref=opinion
http://www.nytimes.com/2014/10/11/b...tariffs.html?rref=business/energy-environment
https://www.google.com/url?sa=t&rct...0fRg716zEbpBEF1D56IIDPQ&bvm=bv.77648437,d.cGU
http://online.wsj.com/articles/risk-of-deflation-feeds-global-fears-1413419211
https://www.google.com/url?sa=t&rct...uoHADA&usg=AFQjCNGFDzX-914s4OSpLReiuSKgB6LJCA
Maybe where you livedGas was $1.75 in December 2008/January 2009 after the markets crashed.
I was a sophomore in college and that had me feeling
shyt has been 3+ in LA for a minute....
Maybe where you lived
shyt has been 3+ in LA for a minute....
It was short lived but look at this chart and go to 2008-09
http://www.losangelesgasprices.com/retail_price_chart.aspx
Gas in LA was $4.70 in July 2008
Went to $1.70 in December 2008
First quarter of 2009 it was above $2
