Oil over $50 a barrel.... spells a big problem ....where is AWOL on this?

[cthrumatrix]

Oil will give economy a crude awakening

August 22, 2004

BY DAVID ROEDER SUN-TIMES COLUMNIST Advertisement

Are oil prices in a bubble? You bet, but that doesn't mean we'll be better off once it bursts.

With the price now pushing $50 a barrel, experts are saying the situation is taking a toll on the economy. The R-word, recession, is seldom bandied around, but you can draw your own conclusions from comments like this one from Joseph Quinlan, chief market strategist at Banc of America Capital Management: "Barring a near-term break in world energy costs, the global economy could enter 2005 in weaker shape than most investors expect, hardly a favorable backdrop for global earnings.''

Oil could fall by 20 percent and still be a pain. It's also just one of several pressures on the consumer. That extra amount you pay at the pump will look like a pittance once you get your winter gas bills. Health-care costs continue to rise, and are joined in the American checkbook by increasing prices for basic food items.

Consumers will have to cut back somewhere, most likely at the mall. Wall Street princes, who don't live paycheck to paycheck, have been slow to get it, but the economy is headed for recession. And that means stocks are going to have a hard time for the rest of the year.

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http://www.crgq.com/HTML/Newsarticles/Low%20Fat%20Lowdown-suntimes8-22-2004.htm


Oil has a huge impact on our economy and we are in deep trouble with $51/barrel oil. Greater heating costs...means less disposable income...means less shopping....means "slowdown".

I would like to hear AWOL and Kerry talk about this....any takers?

[colonel odis]

1. where is awol? getting a nice pat on the back from his saudi buds. n/t

[OneTwentyoNine]

4. And many others who capped wells years ago....

There's a shit load of them in Kansas,low producing wells that aren't worth it at $25.00-$30.00 per barrel. Bet their being uncapped as we speak.

David

[Wright Patman]

2. You'll only hear talk

after the election and then only if the challenger wins. Remember the Bushies "talking down the economy" in December 2000 and January 2001, saying that a recession was imminent and not to blame them when it hit.

Some were pointing out at the time that such talk could become a self-fulfilling prophecy. In fact, a recession did hit beginning in March 2001.

On second thought, I doubt if you'll hear Kerry talking down the economy. The fact is that if a new recession were to hit, it would probably inevitably snowball into a hyperinflationary and/or deflationary depression and so no one wants to take the chance of talking us into one.

[Rockholm]

3. In the 2000 Debate, * said he would call OPEC.

"Hello, OPEC? George here. Could you please pump some more oil? Pretty please. Thank you."
To send this message, press 1. To page this recipient, press 2. To disconnect, just hang up. Thank you.

[Jack from Charlotte]

9. Here's AWOL's exact quote............

During the 2000 Presidential election campaign, Gov. George W. Bush promised to take on the OPEC cartel on behalf of American consumers. Bush said:

“I think the president ought to get on the phone with the OPEC cartel and say, ‘We expect you to open your spigots.’ … The president of the United States must jawbone OPEC members to lower the price.”


On the campaign trail in 2000, Bush spokesman Scott McClellan cited rising gas prices as an example of “failed leadership,” contending that if elected, Bush would support a government investigation of higher gas prices. But gas prices in the United States have reached a record high under the Bush Administration, climbing three cents in just two weeks to a nationwide average of $1.80. According to AAA, gas prices could mean that the average American family would spend an extra $600 at the pump this year, and a gas price increase to $2 a gallon could offset the entire impact of last year’s Republican tax cuts.

[catmandu57]

5. Where's jr.*

Making money hand over fist, and laughing all the way to the bank.

[Blue Wally]

6. What to do??

What can any president do? If the "peak oil" predictions are true, this is the wave of the future. As prices go up, marginal wells can be reopened (as noted above) and such (currently) uneconomical ideas as reclaiming oil from "tar sands" can be brought on line. Jawboning OPEC and releasing the US petroleum reserve will only bring short term relief.

[cthrumatrix]

7. alternate energy policy...tax incentives for fuel efficient vehicles

we have the same fuel eff. as back in 1980...and from all accounts cars are much more advanced...but not on fuel efficiency... so much more can be done as you point out this is not a short term issue

[leesa]

8. Counting the money he's making