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Gold/Mining/Energy : PEAK OIL - The New Y2K or The Beginning of the Real End? -- Ignore unavailable to you. Want to Upgrade?

To: Triffin who wrote (954)	9/10/2005 7:10:33 PM
From: Bill on the Hill	Read Replies (1) \| Respond to of 1183

i was thinking about demand destruction today. Either way we go we still face the consequences of peak oil. If the economy is destroyed in order to slow demand then prices of oil and gas will fall. So will our ability to sustain an ordered economy. So the collapse will cause tremendous problems through the entire society. If economists, Greenie and Bush are able to sustain the economy at this false pace, (barring a bursting housing bubble) then oil and gas will rise to record levels. Then everything we buy or consume will meteorically rise in price causing severe economic repercussions through the entire society. Either way it is demand destruction and ultimately will lead to the collapse of our economy. Am I seeing this right? Like we are walking a tightrope and one slip and we are falling?

To: Triffin who wrote (954)	9/10/2005 9:11:48 PM
From: bentway	Respond to of 1183

I don't think we're even near demand destruction yet. I missed the table, but Venezuala is probably a bad example, since as an oil exporter, they profit hugely from high oil prices and can probably continue to subsidize their local consumption as long as they are selling oil elsewhere. In other countries where this isn't the case, the poor will suffer, as they always do. If we catch a cold from gas prices, a smaller, economically weaker oil importing country may die of pneumonia. I think a more interesting case is europe, where they've been taxing the hell out of gas forever. Europeans are already used to sky high gas prices, and their governments could LOWER their taxes to keep the price more stable. A solution not as available to us.