gas prices down = bad? lost thread...

[haaaylee]

can't find an old post asking why people aren't mad that gas prices are going down. thinking this may come up over christmas... want to reread it all.

[AbolishTheGovt]

There's no reason for me to be "mad" that gas prices are going down, so long as government coercion isn't forcing them down.

[haaaylee]

There's no reason for me to be "mad" that gas prices are going down, so long as government coercion isn't forcing them down.



i think that was the point of the post, that the markets weren't bringing the price down .. ?

[travismofo]

0MMMMMGGGGGZZZZZ!!!!!11111TizzsszDeeeeFlaishonsz!! !!!!!!!1 PaulKrugmanzz zaaave meh from deeefflaaaashions!!!!!!1

[Shinerxx]

I'm not sure what thread you are seeking but the chart at the link below illustrates why crude oil prices declining so steeply is bad.

EIA U.S. Crude Oil Supply and Disposition (http://tonto.eia.doe.gov/dnav/pet/pet_sum_crdsnd_adc_mbbl_m.htm)

In the month of August and September the crude oil pumped within the US was 32% of the total crude oil acquired by the US during the month including imports. An inference can be made from the chart that the US produces 1/3 of the crude oil it consumes. The U.S. during 2008 has produced over 1.36 billion barrels of crude oil which employs many Americans. Texas still produces more crude than any other state in the U.S. Texas hovers around 20-25% of domestic production. I live in Texas and every time I hear someone giddy about gasoline prices declining this low I educate them on how it impacts our state economy.

All the data is the official statistics of the U.S. government though so it is probably completely useless.

[RCA]

I started the thread you're talking about. I was making the point that a $3.00 plunge in gas prices in 3 months should have raised some questions with the general public. Especially questions about why was it $4.00 in the first place. In other words, rather than question, the masses gleefully accepted their fall/election candy from the elite.

http://www.ronpaulforums.com/showthread.php?t=168888

[SamuraisWisdom]

Supply and Demand. The $4.00 gas prices we saw a couple months ago were inflated due to skyrocketing demand, but the second global demand dropped they came crashing back down. There is no conspiracy here.

[TruthisTreason]

Supply and Demand. The $4.00 gas prices we saw a couple months ago were inflated due to skyrocketing demand, but the second global demand dropped they came crashing back down. There is no conspiracy here.

With supply and demand comes speculators (day traders, investors, etc..) riding the waves of the market. Demand is up - everyone is in long, demand is off, the shorts come out.

It's the only combo that makes any sense to me.

[Josh_LA]

low gas prices means people will abuse gas, waste it and waste money elsewhere

higher gas prices means people will appreciate the importance of saving money and reducing carbon emissions.

[paulitics]

Supply and Demand. The $4.00 gas prices we saw a couple months ago were inflated due to skyrocketing demand, but the second global demand dropped they came crashing back down. There is no conspiracy here.

It's alot more than supply and demand. Gas prices have gone down nearly 75% in a few of months. The inflated price was a bubble. Worldwide future demand is still going up. Population growth, China, etc. Oil is a global commodity traded on the stock market. There was speculation, geoploitical forces, Iran, depreciating dollar.

[Brian4Liberty]

High gasoline prices were like a tax that effected all parts of the economy. It was a huge drag, and contributed to the economic downturn. Gas prices going down is the single best stimulus for the entire economy. It's like an across the board tax cut. Far better than any of the crap they are coming up with in Washington, and it doesn't cost the taxpayers.

The bubble in oil was due to speculation, and it needed to pop. Just like the housing bubble.

[RCA]

I don't think that gas is 75% cheaper due to less demand. I mean, it's not like in 3 months time the world lost 75% of all the cars on earth. Give me a break. It's the seven sisters pulling their laughing strings again like always.

[Mesogen]

low gas prices means people will abuse gas, waste it and waste money elsewhere

higher gas prices means people will appreciate the importance of saving money and reducing carbon emissions.

might as well make everything more expensive. make people appreciate being poor.

[damania]

Control of oil. period. don't give me the supply and demand bull@#$.

[paulitics]

Control of oil. period. don't give me the supply and demand bull@#$.
but its a conspiracy theory to think otherwise. I'm sure oil doubling over last year during the first 12 months of a deep recession, was due to increasing demand and decreasing supply. Thats what the newspapers told me. Its subsequent 75% drop is due to a sudden standstill of the economy, and people all accross the world are now driving 75% less.

[Josh_LA]

might as well make everything more expensive. make people appreciate being poor.

I agree. Nobody owes consumers anything. If you are not a producer, you cannot complain anything is overpriced, you are not forced to eat or live.

[Josh_LA]

Control of oil. period. don't give me the supply and demand bull@#$.

how is lowering prices in any way controlling?

[jkm1864]

Better hope it doesn't keep going down. I am really worried about it especially since I work in the oil field. People are happy but ignorance is bliss isn't it? What these people fail to realize is the oil companies are capping all of their wells. They have the right not to sell crap and if it goes lower You will see gas shortages, brown outs, no heating oil, fuel rationing. So maybe You should get on Your knees and pray for it to go back up to 2.50 a gallon and stay there for a while. Oh btw 40 dollars is the profit margin for the gulf and its now past that so looks like our economy in the south is now targeted just like the manufacturing business.

[paulitics]

how is lowering prices in any way controlling?

It makes the smaller companies go bankrupt overnight. Businesses invest on the expectation that oil will be profitable, extreme highs and lows makes it too risky. Only the big boys can weather the turbulance. When the independents go belly up, the price will rise dramtically.
If you want an analogy, this is something walmart does when they enter a town. They lower prices, and actually lose money until they eliminate the mom and pop shops. The mom and pop shops stand no chance, and they are driven out of their own town. Prices then go back up.
Also, the electric car was just becoming a viable alternative until now. It is much more efficient, cleaner, and cheaper than combustion engines, and is something the world should have been using since 1920. Coal is incredibly cheap and abundunt compared to oil. The infrastructure takes a big investment however, and it is not profitable in the short run when gas is this cheap.

[Ex Post Facto]

I think gas was overinflated to begin with...this is just correction on top of limited demand.