Where is the US economy headed?

@Advocate,

I agree with this CNNMoney article.

[quote]Drill baby drill won't lower gas prices

The United States simply doesn't have enough oil to move world markets. Plus, any increase would be offset by OPEC.

By Steve Hargreaves, senior writerApril 25, 2011: 11:22 AM ET

NEW YORK (CNNMoney) -- Every time gas prices reach record highs the call goes out for more oil drilling. This year it's no different.

"The Gulf is ready to get back to work to help create jobs and lower gasoline prices," Washington Republican Doc Hastings, head of the House Natural Resources Committee and a big proponent of more drilling, said last week.

The problem is this: While increased oil and gas drilling in the United States may create good-paying jobs, reduce reliance on foreign oil and lower the trade deficit, it will have hardly any impact on gas and oil prices.

That's because the amount of extra oil that could be produced from more drilling in this country is tiny compared to what the world consumes.

Plus, any extra oil the country did produce would likely be quickly offset by a cut in OPEC production.

"This drill drill drill thing is tired," said Tom Kloza, chief oil analyst at the Oil Price Information Service, which calculates gas prices for the motorist organization AAA. "It's a simplistic way of looking for a solution that doesn't exist."[/quote]

2 Replies

@georgeob1,

georgeob1 wrote:

Advocate wrote:

The thought many have that big production of oil in the USA will lower prices is a scam. We will pay the world prices, and what we produce would not be enough in the world's inventory to really lower prices. We should nationalize as most countries have done.

More oil will reduce the price compared to what it would otherwise be. With rising consumption we can only limit the rise in price, though as with natural gas, enough production could indeed lower the price - as we have already seen.

Most countries have NOT nationalized the production & distribution of petroleum. Interesting to note your solution is to imitate the lean efficiency of Venezuela and Mexico in this area. Very stupid.

You, as with most conservatives, are a mindless dupe of the oil companies. Any reduction on the price of oil because of increased US production would be pennies on the dollar. I think any nonbiased economist would tell you this.

1 Reply

@Advocate,

Advocate wrote:

You, as with most conservatives, are a mindless dupe of the oil companies. Any reduction on the price of oil because of increased US production would be pennies on the dollar. I think any nonbiased economist would tell you this.

Oh, I see. Now you're saying that increased U.S. oil production will lower the price just a little bit. That does seem a bit different from your earlier stupid, categorical statement.

Who here is the mindless dupe??? No need to blame all conservatives for pointing out your many errors of fact and judgment. You do very well on your own.

1 Reply

@georgeob1,

georgeob1 wrote:

Advocate wrote:

You, as with most conservatives, are a mindless dupe of the oil companies. Any reduction on the price of oil because of increased US production would be pennies on the dollar. I think any nonbiased economist would tell you this.

Oh, I see. Now you're saying that increased U.S. oil production will lower the price just a little bit. That does seem a bit different from your earlier stupid, categorical statement.

Who here is the mindless dupe??? No need to blame all conservatives for pointing out your many errors of fact and judgment. You do very well on your own.

I see you revel in your ignorance. Typical!

0 Replies

@cicerone imposter,

cicerone imposter wrote:

Another point of contention about most people who blame the president for our fuel prices. The president does not control oil prices.

Presidents CAN lower gasoline prices
http://www.forbes.com/sites/markpmills/2012/10/17/presidents-can-lower-gasoline-prices/2/

1 Reply

If you want to see sunshine you've got to weather the storm... this Obama storm won't be
blowing out until after the 2016 election, but the sun will shine once again after he's gone.

0 Replies

@Pamela Rosa,

Pamela Rosa wrote:

cicerone imposter wrote:
Another point of contention about most people who blame the president for our fuel prices. The president does not control oil prices.

Presidents CAN lower gasoline prices
http://www.forbes.com/sites/markpmills/2012/10/17/presidents-can-lower-gasoline-prices/2/

I think the author is full of beans. We can't produce enough oil to really move the world's market prices. BTW, the oil companies are making most of the money, not the public. For instance, at present, $20 of your $50 gas fill-up is profit for the oil company. That is incredible for a commodity. You can be sure the oil companies will keep the price of gas high.

1 Reply

@Advocate,

Pamela Rosa doesn't know what she's talking about. Although in reality the US pays some of the lowest gasoline prices, that's not how gas prices in the world are established. It's through competition and the oil markets, not taxes paid by each country that determines world oil prices.

0 Replies

I think Advo & cicegirl are full of beans...

0 Replies

Is there a spin doctor in the house?

Dow closes at a record high today, breaking the previous high set in October, 2007.

2 Replies

@realjohnboy,

Where else dare anybody put money? The DOW is only 30 companies I believe. They might have been chosen in order to have the effect.

Nobody is lending to all that many of the other companies.

1 Reply

@spendius,

Quote:

Nobody is lending to all that many of the other companies.

Lending?

You do know that the total cash reserves of American companies now stand at roughly a trillion dollars?

0 Replies

@cicerone imposter,

Quote:

The United States simply doesn't have enough oil to move world markets. Plus, any increase would be offset by OPEC.

We do however have enough cheap natural gas to convert and run a large percent of our total transportation system on it if need be and after the cost of the conversion is over with at a greatly reduce ongoing cost.

0 Replies

The first step toward economic recovery is for Obama, Pelosi and the rest of the democrat
political class to admit that they and their fellow DC politicians have a spending problem.

0 Replies

@cicerone imposter,

Idiot.

1 Reply

@H2O MAN,

H2O MAN wrote:

Idiot.

Another little squirt from piss fart.

1 Reply

@tenderfoot,

Definitely trolling

0 Replies

@realjohnboy,

I'm not a spin doctor, but I can offer you an opinion.

Rule 1: never try to time the stock market.
Rule 2: invest for the long term.
Rule 3: diversify.
Rule 4: buy low, sell high - or - buy funds on a regular basis, preferably every month. This averages out the cost of the fund - never paying the highest or lowest price.
Rule 5: don't sell when the market drops; sell when it's high. If you bother to look at the stock market for the long term, it always goes higher - even after a huge drop. That's the reason the stock market is at new highs even though it dropped to it's lowest point after 2007. Think long term.
Rule 6: the classic advise is to have a mix of bonds and equities, and to increase your bond holdings as one gets older. I don't believe in this theory - especially today when the bond market isn't even keeping up with inflation.
However, one must be on guard to tweak one's holdings as needed.

That's my 2 Cents

worth of opinion. Mr. Green

1 Reply

@cicerone imposter,

Rule 4 (buy low, sell high) violates rule 1. You can't tell when the market is high or low based on rule 1
Rule 5 violates rule 1. ibid

1 Reply

@parados,

Quote:

Rule 4 (buy low, sell high) violates rule 1. You can't tell when the market is high or low based on rule 1

If you don't know what you paid for something, you're lost anywhos, so forget the stock market.

Quote:

Rule 5 violates rule 1. ibid

Explain.

1 Reply

Where is the US economy headed?

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