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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (67073)	8/7/2005 10:19:25 AM
From: Moominoid	Read Replies (1) \| Respond to of 74559

And then all the petrodollars were recycled back to Latin America etc. by banks willing to loan them out for any junk.... This time it is true the petrodollars will be less as a share of world capital flows. And again they probably will buy a lot of weapons. Most economic analysts just look at the shift in expenditure required to pay for the additional cost of oil. And say well people need to spend money on oil so they can't do other things, that is the economic effect of an oil crisis. They seem to assume that people will not reduce energy use at all. They don't look at the real effect of reduced energy use on economic activity. This IMO is because their whole framework of analysis is biased against finding an important role for energy. Natural scientists/engineers do not make that mistake. Of course natural scientists tend to make the mistake of not realizing how adaptable people and economic institutions are. To really understand what is going on you need to be interdisciplinary and combien insights from both natural and social science.