Re: Will you buy gas at $5????
While you are right regarding the oil companies being one part of a complex formula, the variable is that they are currently the largest part of the formula.
you're right. That's inflation, but, while inflation does follow a similar procedure, it typically doesn't result in the value of the american dollar dropping to almost being worthless in other countries.
the problem here is that people will not cut consumption, because they have no way to. There are not enough mass transit systems for suburban areas, people are NOT going to ride their bike to work when their DRIVE is already 45 minutes, and they are not just going to up and change to a closer job. And as far as money flowing into alternative energy sources, there still aren't any out there that are as affordable as oil. You speak of solar power. To run my home strictly off solar power, it would take a system costing roughly $34,000, and that is only with a 4kw system. as far alternatives fuels in gas, yes they're working on it, but even with GM's E-Flex platform being unveiled it won't be availible for production until 2016 as a preliminary estimate. All other forms of alternative energy have either had the patents bought out, or are not cost effective. The system for inflation works because after a certain period of time, demand tapers off and supply and demand fall equal again and therefore prices become steady. However at this point in time, the likelyhood of demand following the a-typical curve of standard inflation formulae is extraordinarily low. Demand will stay high because of the dependency on the product at hand, and prices will continue to rise. This is not typical inflation.
The system is working as designed, yes, but the design of the system is not working for the economy.
Like i said, just my opinion.
Originally posted by SpeedingFirebird
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While you are right regarding the oil companies being one part of a complex formula, the variable is that they are currently the largest part of the formula.
you're right. That's inflation, but, while inflation does follow a similar procedure, it typically doesn't result in the value of the american dollar dropping to almost being worthless in other countries.
the problem here is that people will not cut consumption, because they have no way to. There are not enough mass transit systems for suburban areas, people are NOT going to ride their bike to work when their DRIVE is already 45 minutes, and they are not just going to up and change to a closer job. And as far as money flowing into alternative energy sources, there still aren't any out there that are as affordable as oil. You speak of solar power. To run my home strictly off solar power, it would take a system costing roughly $34,000, and that is only with a 4kw system. as far alternatives fuels in gas, yes they're working on it, but even with GM's E-Flex platform being unveiled it won't be availible for production until 2016 as a preliminary estimate. All other forms of alternative energy have either had the patents bought out, or are not cost effective. The system for inflation works because after a certain period of time, demand tapers off and supply and demand fall equal again and therefore prices become steady. However at this point in time, the likelyhood of demand following the a-typical curve of standard inflation formulae is extraordinarily low. Demand will stay high because of the dependency on the product at hand, and prices will continue to rise. This is not typical inflation.
The system is working as designed, yes, but the design of the system is not working for the economy.
Like i said, just my opinion.
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