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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (229672)	4/18/2005 9:51:56 AM
From: combjelly	Read Replies (2) \| Respond to of 1578303

"In the 1970's soaring prices of oil and other commodities led to stagflation -" Well, we've been assured that things are different now. How, I am not exactly clear on, but different. I guess the lack of disco and polyester makes all the difference in the world... I, for one, am profoundly uneasy. The price delta on gasoline in a short period of time is going to have a profound effect if it goes on for much longer, and there isn't any sign it is going to change. Yeah, you could argue that it has been as high or higher in the past, but that was after years of it being high. The shortages that we all knew and loved during the early 1970s probably aren't going to be a factor. That was triggered by the collapse of the anchovette fishery off the coast of South America. Achovette accounted for over a third of the world's landed fish in the years leading up to its collapse(IIRC, it went from millions of tons to hundreds in the space of a year or so), almost all of it going into high protein fish meal. With that supply cut off, the best substitute was soy bean, so they price of that sky rocketed. Soy bean had made good penetration into a lot of markets by that time and when the price of soy went up, that cascaded through out the economy. So we probably will be spared that. But, as Jim has been obsessing over, we very well could have a pop of the real estate bubble, and that could be a workable substitute to the commodity crisis. We live in interesting times...