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Perhaps the understatement of our young century, but it certainly is a great reason for us all to find alternatives to oil. It seems OPEC and other oil-rich nations have grown rather fond of high crude prices. As human nature goes, we normally spend every last dime we make...and these nations are no different. Now as oil prices decline, there are concerns that their 2009 budgets may be busted, and they are scrambling for ways to provide price support. Iraq, for instance, has said it needs $111 per barrel oil to balance next year's budget. Maybe we should tell them that I need $1.50 gas to balance my budget.
One thing I don't quite understand, if they lower production to keep the price up...won't the end result still be less money in their coffers? I can't really fault them for screwing us all over, but as I said, we need to find another way.
This Market Isn’t the Dot-Com Bubble
1 day ago
3 comments:
I think this just shows how intertwined all economies are in the expanse of globalization. I hope we just remain at the top of the food chain (both figuratively and literally).
It's amazing what happens when governments become addicted to high prices for any natural resource. They quickly forget that they had operated just fine for many years at reasonable prices.
"It's amazing what happens when governments become addicted to high prices for any natural resource. They quickly forget that they had operated just fine for many years at reasonable prices."
This brings up an interesting question...what are reasonable prices? While unhappy about it, I found that $4 gasoline was still a very reasonable price, compared to my current alternatives.
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