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| Falling Oil Prices Make Double-Edged Sword (1235054) | |
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Falling Oil Prices Make Double-Edged Sword |
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Posted by Dave on Mon Oct 20 15:58:09 2014 This is what I was talking about last week |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by ClearAspect on Mon Oct 20 17:10:27 2014, in response to Falling Oil Prices Make Double-Edged Sword, posted by Dave on Mon Oct 20 15:58:09 2014. I hate how crude is used as a marker for the worlds economy. The fact is that speculators over priced oil in the first price, now they're trying to cause a crisis? This has the markers of a manufactured crisis. |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by WillD on Tue Oct 21 06:15:50 2014, in response to Falling Oil Prices Make Double-Edged Sword, posted by Dave on Mon Oct 20 15:58:09 2014. The article requires the reader to suppose the pessimistic economic predictions made by those who have a vested interest in seeing the economy tank come true. It's circular reasoning supported by internal bias. Nothing like cranking up the old propaganda machine in October. And this from the same idiots who claimed Obamacare would give us hyperinflation this time last year. |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by 3-9 on Tue Oct 21 12:26:11 2014, in response to Re: Falling Oil Prices Make Double-Edged Sword, posted by WillD on Tue Oct 21 06:15:50 2014. I didn't see that in the article. It looked OK to me. The title might be misleading though. He stated, in a somewhat convoluted way, that falling oil prices are good for the consumers and bad for the producers, which is the truth. And since the US is a big consumer, that tends to help us. |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by 3-9 on Tue Oct 21 12:31:09 2014, in response to Re: Falling Oil Prices Make Double-Edged Sword, posted by ClearAspect on Mon Oct 20 17:10:27 2014. Are you saying that the speculators are dumping oil on the market to lower the price, so they can buy even more? |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by AlM on Tue Oct 21 12:39:48 2014, in response to Re: Falling Oil Prices Make Double-Edged Sword, posted by 3-9 on Tue Oct 21 12:26:11 2014. The title might be misleading though.It is. It's an incorrect use of the metaphor. Falling oil prices are a net positive for the economy: they do more good to all other businesses than they do harm to oil-related businesses. But if they are due to low demand in a lousy economy to begin with, then the original lousy economy may be a more serious negative than the benefit of falling oil prices are a positive. |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by Charles G on Tue Oct 21 15:43:33 2014, in response to Re: Falling Oil Prices Make Double-Edged Sword, posted by WillD on Tue Oct 21 06:15:50 2014. You might want go back and re-read the economic statements that are made in the article and then re-think your comments.On the other hand they reflect a struggling global economy that is seeing falling demand as well as falling confidence. As deflation and stagnation pressures mount the ECB acts to try to stem the sinking mood in the European Union. ...This move is in response to concerns that the EU mired in recession could slip into a deflationary downward trek unless the Central banks and governments to something to stem the slide. Deflation pressures will only mount if the US exits its bond buying binge as scheduled. (and this would happen for what reason? Because the US economy is relatively strong) |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by AlM on Tue Oct 21 16:00:54 2014, in response to Re: Falling Oil Prices Make Double-Edged Sword, posted by Charles G on Tue Oct 21 15:43:33 2014. While your points are correct, "double edged sword" is still an incorrect metaphor and skews the meaning of the article.A double edged sword is something that has both good and bad effects. The article is not saying that low oil prices have both good and bad effects. It is saying low oil prices have good effects but may be a consequence of bad events. Why is this important to quibble over? Because by using "double edged sword" the writer is suggesting that maybe low oil prices should be prevented. And that's an unsubstantiated (at least in this article) suggestion. |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by Charles G on Tue Oct 21 16:33:13 2014, in response to Re: Falling Oil Prices Make Double-Edged Sword, posted by AlM on Tue Oct 21 16:00:54 2014. I wasn't really responding to the discussion of the use of "double edged sword" in the article, but specifically to Will's assertion that the references to a weak economy were an election-induced propaganda effort.The article doesn't support the "double-edged sword" headline -- but there is a bit of a double-edged sword for the US economy. One of the brightest growth spots in the US economy in recent years has been the oil in the Dakota's and the ensuing transportation of that oil (however unsafe that may be -- build newer railcars! even more jobs!). But that oil is still costly to extract relative to the oil from the Middle East. If the price of oil falls below the cost of extraction then those jobs in North Dakota will start to disappear, the oil trains will stop running and the new railcar production will stop. That is a double-edged sword. I tend to think that the other economic benefits would outweigh the negative impact on the oil industry in the US -- but I haven't really thought about it much. But at least mentioning that would have been the correct use of the double-edged sword term. |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by AlM on Tue Oct 21 16:45:55 2014, in response to Re: Falling Oil Prices Make Double-Edged Sword, posted by Charles G on Tue Oct 21 16:33:13 2014. I tend to think that the other economic benefits would outweigh the negative impact on the oil industry in the US -- but I haven't really thought about it much.However, lots of economists have thought about it and they tend to pretty uniformly agree that the benefit to the rest of the economy outweighs the damage to the oil industry. At least for the first incremental dollar of price reduction. If the cost of oil went to $5 because of some infinite supply found in Saudi Arabia that might be different. |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by Charles G on Tue Oct 21 16:55:52 2014, in response to Re: Falling Oil Prices Make Double-Edged Sword, posted by AlM on Tue Oct 21 16:45:55 2014. Perhaps it is only a "double-edged sword" in western North Dakota then. |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by SelkirkTMO on Tue Oct 21 16:58:45 2014, in response to Re: Falling Oil Prices Make Double-Edged Sword, posted by Charles G on Tue Oct 21 16:55:52 2014. And Texas. But representatives of both states here assure us that they'll do just fine despite any "boom and bust" cycles. |
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Re: Falling Oil Prices Make Double-Edged Sword |
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Posted by 3-9 on Tue Oct 21 17:00:49 2014, in response to Re: Falling Oil Prices Make Double-Edged Sword, posted by Charles G on Tue Oct 21 16:55:52 2014. Well, globally speaking, it is a double-edged sword. Major oil-producing nations almost completely depend on the stuff (see: Venezuela), and Russia needs every bit of foreign currency it can get. OTOH, guys the UAE will probably have to hold off on making new islands. :-) |
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