4 ms·

> If oil reaches $200, it would damage the global economy. What supports $200 oil, then?

by 9rx 6mo ago

justonceokay 6mo ago
The 5 trillionaires that will still be able to afford it.
- 9rx 6mo ago
  The 5 trillionaires can also afford $10,000 oil. Why would they pay $200 when they could pay $150?
ericmcer 6mo ago
Everything? Price of oil is tied to the price of every single thing you buy. Unless you go off grid and grow your own food you are supporting the price of oil.
- 9rx 6mo ago
  Exactly. If you keep buying those things then the world economy will remain strong. Economies are damaged only when people stop buying things. So, again, if the world economy is damaged what supports $200 oil?
  - bigbadfeline 6mo ago
    > So, again, if the world economy is damaged what supports $200 oil? Good'ol money printing. > If you keep buying those things then the world economy will remain strong. Economies are damaged only when people stop buying things. Boring stuff like stagflation takes care of that.
    - 9rx 6mo ago
      > Good'ol money printing. Okay, so not really $200, except maybe nominally which doesn't mean much today. Per the discussion, what supports $200 oil in real dollars?
      - bigbadfeline 6mo ago
        > Okay, so not really $200, except maybe nominally which doesn't mean much today. Well, it is real $200 - nobody said price inflation would lead to wage inflation, and it wouldn't. > what supports $200 oil in real dollars The only real "real" is the standard of living - when it drops with inflation, comparisons to yesteryear's melted snow don't really matter.
        9rx 6mo ago
        > Well, it is real $200 Okay, but then what supports the nominal $300 or whatever value it is after inflation has also been accounted for? We haven't even figured out how a nominal $200 is supported and now you're talking even larger nominal numbers, given the assumption of inflation. > The only real "real" is the standard of living Maybe as an individual, but that has little relevance to a macro discussion.

> If oil reaches $200, it would damage the global economy. What supports $200 oil, then?

by 9rx 6mo ago

> If oil reaches $200, it would damage the global economy. What supports $200 oil, then?

justonceokay 6mo ago

The 5 trillionaires that will still be able to afford it.

9rx 6mo ago
The 5 trillionaires can also afford $10,000 oil. Why would they pay $200 when they could pay $150?

ericmcer 6mo ago

Everything? Price of oil is tied to the price of every single thing you buy. Unless you go off grid and grow your own food you are supporting the price of oil.

9rx 6mo ago
Exactly. If you keep buying those things then the world economy will remain strong. Economies are damaged only when people stop buying things. So, again, if the world economy is damaged what supports $200 oil?
- bigbadfeline 6mo ago
  > So, again, if the world economy is damaged what supports $200 oil? Good'ol money printing. > If you keep buying those things then the world economy will remain strong. Economies are damaged only when people stop buying things. Boring stuff like stagflation takes care of that.
  - 9rx 6mo ago
    > Good'ol money printing. Okay, so not really $200, except maybe nominally which doesn't mean much today. Per the discussion, what supports $200 oil in real dollars?
    - bigbadfeline 6mo ago
      > Okay, so not really $200, except maybe nominally which doesn't mean much today. Well, it is real $200 - nobody said price inflation would lead to wage inflation, and it wouldn't. > what supports $200 oil in real dollars The only real "real" is the standard of living - when it drops with inflation, comparisons to yesteryear's melted snow don't really matter.
      - 9rx 6mo ago
        > Well, it is real $200 Okay, but then what supports the nominal $300 or whatever value it is after inflation has also been accounted for? We haven't even figured out how a nominal $200 is supported and now you're talking even larger nominal numbers, given the assumption of inflation. > The only real "real" is the standard of living Maybe as an individual, but that has little relevance to a macro discussion.