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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Enam Luf who wrote (606892)	8/20/2004 4:55:44 PM
From: Knight	Respond to of 769670

True, the price of oil certainly can play a big part in inflation. With oil, I fear there are macro factors involved over the long-term that will gradually move prices higher. The primary factor is the modernization of the economies of many formerly primitive countries. As nations such as China become larger consumers of oil, it will create taxing demands on worldwide supply, resulting in higher prices. In addition, I've read that as oil wells age, it becomes more expensive to tap into the oil (e.g. the first 50% is cheaper to get out of the ground than the last 50%). In the immediate-term, I don't know the cause of the high prices. I don't understand all the nuances of worldwide-oil prices, except that I'm quite sure they're pretty much beyond the scope of any President's direct control. (Obviously, I don't subscribe to the conspiratorial views about worldwide oil markets being manipulated by the Bush family and their oil buddies.)