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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.
by 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 agoExactly. 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.