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04-08-2005, 09:19 AM | #5 (permalink) |
I love Derf!! Join Date: Aug 10 2004 Location: Puget Sound
Posts: 2,870
Rep Power: 24 | I think Neon feels he needs to win either way? I feel that inevitably gas prices will effect everything! People here are tightening up with their disposable cash.(I still don't know what that is) More people are uncertain of what future expenses will be so they will put off leisure time & vacations and tanning won't seem to be much of a priority... But then there are some that will tan just to look like they could afford a vacation... |
04-08-2005, 09:35 AM | #7 (permalink) |
I'm Banned Join Date: Oct 2 2004 Location: San Diego Age: 54
Posts: 510
Rep Power: 0 | No, but inflationary pressures will. Gas prices ebb and flow. Although prices have gone up recently, it is likely to self correct as OPEC and oil-rich nations try to stabilize oil prices. They understand from the 70s that creating a spike in prices actually reduces profits as nations start to depress demand and look for energy alternatives. The chink in this, however, is China's recent surge in demand. The affects will come from percieved changes in costs. So if you mean will it affect it by any means? The answer is yes. Inflation is directly tied to perception or too much money chasing too few goods. In this case it will be perception. People see gas prices going up, listen to all the bah-humbugs who say everything is glum, and start to expect to pay more. It will be up to the Federal Reserve to correct this by raising the prime lending rate (attacking it from the other end of the gun: too much money chasing too few goods). Some may say, "But this makes the situation worse by raising costs!" Nope. It enforces fiscal prudence and makes people reassess cost structures. This usually kills inflationary pressures because people start to spend less. Why did I go into this? Using Macroeconomics, you can delve into how the "large currents" in the ocean are affecting the little fishes in the sea. _________________ John -This Signature Intentionally Left Blank-[ This Message was edited by: JohnnyComeLately on 2005-04-08 15:51 ] |
04-08-2005, 10:09 AM | #9 (permalink) |
Join Date: Aug 17 2004
Posts: 2,901
Rep Power: 21 | Quote: On 2005-04-08 09:35:00, JohnnyComeLately wrote: No, but inflationary pressures will. Gas prices ebb and flow. Although prices have gone up recently, it is likely to self correct as OPEC and oil-rich nations try to stabilize oil prices. They understand from the 70s that creating a spike in supply actually reduces profits as nations start to depress demand and look for energy alternatives. The chink in this, however, is China's recent surge in demand. The affects will come from percieved changes in costs. So if you mean will it affect it by any means? The answer is yes. Inflation is directly tied to perception or too much money chasing too few goods. In this case it will be perception. People see gas prices going up, listen to all the bah-humbugs who say everything is glum, and start to expect to pay more. It will be up to the Federal Reserve to correct this by raising the prime lending rate (attacking it from the other end of the gun: too much money chasing too few goods). Some may say, "But this makes the situation worse by raising costs!" Nope. It enforces fiscal prudence and makes people reassess cost structures. This usually kills inflationary pressures because people start to spend less. Why did I go into this? Using Macroeconomics, you can delve into how the "large currents" in the ocean are affecting the little fishes in the sea. My brain hurts now, thanks alot!!! |
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