How falling gas prices could accelerate economic growth

Discussion in 'Financial Cents' started by Quigley_Sharps, Nov 16, 2013.

  1. Quigley_Sharps

    Quigley_Sharps The Badministrator Administrator Founding Member

    If you've recently noticed that you can fill up your tank without emptying your wallet, it's because gasoline prices have fallen back to their lowest point in over two years:

    difficult-to-extract oil, like shale, has become much more economically viable. Subsequently, U.S. oil production has rebounded strongly. In 2012, it grew more than in any year in the history of the domestic industry, which began in 1859:


    Recent projections suggest that the United States will become the world’s biggest oil producer by 2015. So, although energy prices are still ultimately determined by global demand — one of the reasons for the run-up in price prior to 2008 was massively increased demand from developing economies in Asia, particularly China — supply is proving strong enough to keep prices down.

    While the United States has recovered more strongly from the 2008 crisis than Europe, which is in a longer slump than the Great Depression, the recovery has still been relatively weak. Even as stock prices reach all-time highs,unemployment is still over seven percent, meaning there are over 12 million people who are looking for work who can’t find a job. Industrial production is still below its 2008 level. Goldman Sachs describes falling gas prices as a "favorable tailwind" for the U.S. economy. It’s a tailwind the economy needs, if we're ever going to get a stronger self-sustaining recovery.
    Last edited by a moderator: Jan 26, 2015
    Motomom34 likes this.
  2. Motomom34

    Motomom34 Monkey+++

    Do you think that is possible? I heard someone say this week that 2017 would be when we collapse. I think the worlds economies are to connected.
  3. VHestin

    VHestin Farm Chick

    I think it's possible, but I am suspicious that this is the 'calm before the storm' so to speak. Mainly because the politicians only know how to screw things up.
    gunbunny, mysterymet and Motomom34 like this.
  4. Motomom34

    Motomom34 Monkey+++

    It was a quote from Goldman Sachs and I find those people highly suspicious. They don't seem to live in my world.
  5. BTPost

    BTPost Stumpy Old Fart,Deadman Walking, Snow Monkey Moderator

    Even the MailRoom Kid makes more than I do....... Definitely, they do NOT live in "My World"..... Of course 99.9% of the Monkeys do not live in "My World" either....
    Last edited: Nov 16, 2013
    Motomom34, DKR and VisuTrac like this.
  6. VHestin

    VHestin Farm Chick

    If people wanna live in my world, they gotta pay rent! [touchdown]
    Motomom34 and kellory like this.
  7. kellory

    kellory An unemployed Jester, is nobody's fool. Banned

    OK, but it will be rent controlled. (And I am going to sub-lease to every one I can find, for an un-godly profit, while you will NEVER be able to evict me as long as my rent is paid on time) heh, heh, heh, [lolol](I'm going to be rich!:D)
    Motomom34 likes this.
  8. VHestin

    VHestin Farm Chick

    I don't charge CASH for rent. Security deposit is 20lbs of Tillamook cheese(the colby/jack mix or cheddar) and 10lbs of wild boar bacon, nonrefundable. Monthly rent is 5lbs each of York Peppermint Patties, Ghiradelli Chocolate Chips, and Reese's Peanut Butter Cups, plus 30hours of manual labor each month.
  9. kellory

    kellory An unemployed Jester, is nobody's fool. Banned

    No worries, I'll send Manuel right over.;)
  10. gunbunny

    gunbunny Never Trust A Bunny

    A friend of mine had a saying about these spikes/drops- he said we are dropping so we can build up speed for an even better zoomy price hike. I just call it the roller coaster effect.

    It doesn't really appear to have dropped below the floor far enough to stabilize there. It seems like the price is something that can be readily controlled through a series of economic measures (by TPTB). Seemingly to up the numbers when needed (like election time and such) and then switch them back when a profit is needed. Sow and reap.
  11. Yard Dart

    Yard Dart Vigilant Monkey Moderator

    Save me a room.... I like those terms!! :cool:
    kellory likes this.
survivalmonkey SSL seal warrant canary