O
oompah
Just come back from a fortnight in Egypt and the price of petrol has dropped from 121p a litre to 116p a litre what happened to joe 90's doom and gloom of ever increasing prices?
Sponsored Links
I feel the same confusion! Just got back from France! Shocking!
Filled up on thurs at £1.31ltr, drove past local morereasons this morning and their displaying £1.21ltr. Was amazed, heard nowt on 't' box.
wot wi more work than can shake a stick at, wot crunch
wot wi more work than can shake a stick at, wot crunch
Sponsored Links
- Joined
- 28 Oct 2005
- Messages
- 31,282
- Reaction score
- 1,998
- Country
It's what you expect. Look at an economics graph and it will look like a mountain range. The price peaks then falls - but not as low as it did, then it will peak again and fall back but not as far as last time.
Basically, what happens is the price goes up and thus people the world over use less, so when usage falls the price falls too. The problem is that places like China, India and Indonesia are continuing to industrialise so will soon take up the slack that's been created - and so the price will rise even higher. Then the World uses less, which creates slack, and the price falls - but not as low as last time. Then China et al take up the slack - and the shortage creates another price rise.
This may seem innocuous enough, but the reality is that every time we use less - the economy shrinks. So every time there is a price rise the economy will shrink (as it is doing now). Less oil means less economic activity - and hence a shrinking economy - or recession.
Sadly as the cycle can never end (as we have no new oil) the recession will never end. A recession that never ends is a depression.
Enjoy the hiatus, this Indian summer of economic stability, it can't last - it's a mathematical impossibility for it to do so.
Basically, what happens is the price goes up and thus people the world over use less, so when usage falls the price falls too. The problem is that places like China, India and Indonesia are continuing to industrialise so will soon take up the slack that's been created - and so the price will rise even higher. Then the World uses less, which creates slack, and the price falls - but not as low as last time. Then China et al take up the slack - and the shortage creates another price rise.
This may seem innocuous enough, but the reality is that every time we use less - the economy shrinks. So every time there is a price rise the economy will shrink (as it is doing now). Less oil means less economic activity - and hence a shrinking economy - or recession.
Sadly as the cycle can never end (as we have no new oil) the recession will never end. A recession that never ends is a depression.
Enjoy the hiatus, this Indian summer of economic stability, it can't last - it's a mathematical impossibility for it to do so.
- Joined
- 28 Oct 2005
- Messages
- 31,282
- Reaction score
- 1,998
- Country
IN LITRES! OR GALLONS!
And do they ship it in barrels? Isn't this a waste of more resources making barrels?
No, they barrel it over here in ships.
Sponsored Links
Similar threads
- Deleted member 18243
- General Discussion
