Natural Resource Stocks Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Natural Resource Stocks

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: isopatch who started this subject	5/18/2004 11:09:11 AM
From: isopatch	Read Replies (2) of 108759

Are higher oil prices really inflationary?! Consider this: <What will be the impact of higher oil prices? Oil prices remain near record levels following the car bombing in Iraq on concerns supply will be disrupted amidst continued strong global demand. US refineries are operating at 96% capacity. The average price of gas is up $.38 since the end of last year. Every penny rise in the price of gas drains $1.3 billion from consumer cash flow. With the demand for oil inelastic, one has to wonder how consumer spending will be affected. One also has to wonder how the global economy will be impacted.> bonds-online.com I don't think we have to wonder. It reduces consumer purchasing power significantly at a time when real wages have been in decline for years. Inflation is not sustainable without rising wages. While the ST effect is to spur inflation numbers for most of this year, the LT effect is deflationary by draining demand from the segment of the economy that accounts for about 60% of aggregate economic demand. Isopatch

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next