Article

2012-08-11 Economy

Oil demand slows as global economy falters

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Posted by Steve White 2012-08-11 00:00|| || Front Page|| [11126 views ] Top

#1 But gas is still $4 a gallon in the U.S...

$3.25 here in the Deep south.

Posted by Redneck Jim 2012-08-11 00:08|| 2012-08-11 00:08|| Front Page Top

#2 And my Toyota (Made in Tennessee) Gets 37 MPG.
At 3.25 that makes my cost-per-mile around 8.7cents a mile NO repairs needed. (Yet)

(Did just put a $350.00 Wheel bearing on it a month ago, should be good for another 100,000 or so)

Posted by Redneck Jim 2012-08-11 00:15|| 2012-08-11 00:15|| Front Page Top

#3 But gas is still $4 a gallon in the U.S...

And will stay so. A trillion dollar stim, multiple quantitative easings all without any substance to back the creation of money invites inflation. Commodities maintain a general relationship between each other barring some significant change in productivity or technology. I use the 'penny indicator'. In 2005 it cost about .97th of a cent to make a [already debased non-pure copper] 'penny'. Today it costs 2.42 cents to make a 'penny'. In other words, while in 2005 your paper dollar was worth about 100 pennies in actual cost/value, today 2012, that paper dollar is buying 42 pennies. So, in relationship of commodities, that 4 dollar gallon of gasoline is about 168 'pennies'.

On the other side, those 2008 million dollar homes which after the bust by 2009 could only sale for 400 thousand and were sitting on the books of all those banks are now appreciated by that 'non-inflation' back to something close of their pre-bust valuation. The banks are solvent thanks to the boys running the Fed and Treasury, who will, of course, get employment in the industry after their time in the Beltway.

Posted by Procopius2k 2012-08-11 09:04|| 2012-08-11 09:04|| Front Page Top

#4 We've got a KIA plant down the road in Lagrange. I don't care for them myself, they remind me of a Nash. The Good Lord drove a Ford. Glad to have the factory here though. They employ a lot of local people, even one or two Alabamians. :-)

Posted by Besoeker 2012-08-11 09:10|| 2012-08-11 09:10|| Front Page Top

#5 As usual, what was omitted from this article was a graph showing daily/annual oil consumption on a worldwide basis. It has plateau'd, and the reported 'slowing' is a mere ripple in that plateau.
Oil demand, demand forecasts, supply and demand fundamentals, etc. are all hypotheticals. Consumption isn't.

Posted by Anguper Hupomosing9418 2012-08-11 12:48|| 2012-08-11 12:48|| Front Page Top

#6 The TPBF banks are NOT solvent, but the Fed & the Treasury do make the rest of us think that they are.

Posted by Anguper Hupomosing9418 2012-08-11 12:49|| 2012-08-11 12:49|| Front Page Top

#7 I paid $3.35/gallon at a Sam's Club in Central Virginia yesterday, RJ. It's around $3.50 at gas stations.

Posted by Barbara 2012-08-11 12:53|| 2012-08-11 12:53|| Front Page Top

#8 All commodities are still grossly expensive. From gypsum to copper, with greatly decreased demand they still remain very expensive.

Do you think the market could be rigged?

What am I saying? I'm surely in the NSA data banks now!

Posted by bigjim-CA 2012-08-11 12:53|| 2012-08-11 12:53|| Front Page Top

#9 The gross expense of commodities merely reflects worldwide currency debasement, in my opinion. All the bad debt run up in recent decades has to be absorbed somehow.

Posted by Anguper Hupomosing9418 2012-08-11 13:05|| 2012-08-11 13:05|| Front Page Top

#10 What am I saying? I'm surely in the NSA data banks now!

Oh, we've had you in the data banks for a long time now.

Posted by NSA Database Mgr. 2012-08-11 14:55|| 2012-08-11 14:55|| Front Page Top

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