Maincooncat,
I think food and gas are basically the same issue.
Do the charts or tables from the CBO or US BEA show a projected growth which do not take into account the oil supply?
Thanks in advance,
[quote=Davos]Hello Becky, Wow, I wish I had a memory like you - or at all for that matter. Malden I would highly reccomend peeking at that book. I’d be most interested in getting your opinion of just that one chapter. Take care[/quote]Ok, I have just finished that chapter about inflation, so here are some comments:
As Professor Friedman writes, "Why should they (dollars) also be
accepted by private persons in private transactions for goods and
services? The short answer - yet the right answer - is that each
accepts them because he is confident others will. The pieces of paper
have value bacause everybody thinks they have value."
That is true, but on a national level money must be supported by law, i.e. state authority to be accepted by everybody.
# Gold has value not for what it can do, but because it solves many of the problems with commodity-based currencies like rice and cheese... In the case of gold, the quantity of metal is determinednot by government, but rather by the foibles of discovery and mining technology.
Gold is also the commodity, not eatable but still commodity. Because of scarcity and natural limits of production, gold is devastating to any economy if used instead of real (abstract or fiat) money. Gold can ease produce shortage or deflation of money thus hurting economy and progress of society, especially when private bankers are involved in speculative activities to remove it from circulation and setting a higher value of their money. American farmers and workers were more than familiar with that fact during 19th and early 20th century, facing unbearable debts and lack of medium of exchange.
# As we’ll see, government control of money is frequently the source of monetary misery… We live in an era of so-called “fiat” money where the supply of currency is dictated by government command (or fiat). Unlike gold, the supply of fiat money is controlled by the government and so can be modulated to fit economic needs.
On the contrary, privat control of money is real source of misery and debt. Why would government use the money in form of loans from private banks (FED or commercial, whatever) when can issue it freely by itself and spend it into the economy to promote general welfare, of course not recklessly and without measure, but according to some criteria like GDP growth or velocity of money.
# Inflation
is simple. When more money is created, the value of each piece
of money declines. That is inflation.
Like I said, expanding the money supply should be
consistent with GDP growth or in other words with creating a new value. In that case, there is no inflation or worse deflation of money like we
have today. Inflation of prices is a different matter and can exist
even in a period of shortage of money, because interest charges on
privately created money and taxes for public debt payoff push prices
up.
Deposit or book-entry money created by private commercial banks is temporаry money which disappears along with debt payoff. And then we go again with more new debt, interest charges and taxation. Most of the money in U.S. is that kind of money, meaning that every time someone withdraw his money in form of cash (dollar bills), about 20 times more book-entry money literally disappears from existence because of multiplication or leverage involved in whole process. That is the "magic" of fractional reserve banking or should I say the biggest scam in entire human history. I hope you now realize why "helicopter" money is a good thing to do. China does that all the time and beats you economically.
ASPO-USA's Peak Oil News
Thursday, April 16, 2009
Prices and production
When the markets reopened on Monday, oil prices reacted to the IEA’s forecast of a 2.4 million
b/d drop in global demand for oil this year by falling from $52 a barrel to circa $50. Even a
major pipeline fire in Nigeria, which took 120,000 b/d off the market, did little to move prices.
OPEC has joined the IEA in forecasting a decline in global production in 2009. The IEA is now
estimating that global consumption will be 83.4 million b/d while OPEC puts the number at 84.1
million.
The weekly US stocks report showed crude inventories climbing by 5.6 million barrels to the
highest they have been in nearly 19 years. US refineries operated at 80.4 percent of capacity
last week, a level usually associated with widespread refinery outages following a Gulf
hurricane.
US demand for petroleum products is now down by 5.2 percent as compared with last year.
Gasoline demand is down by only 0.4 percent, but distillate and jet fuel demand is down by
nearly 7 percent.
Recent estimates of the progress of OPEC’s production cut has output falling by an additional
90,000 b/d in March, but still 765,000 b/d above the 4.2 million b/d target. Iran alone continues
to talk of additional cuts. The other OPEC oil ministers have been unusually quiet recently.
US import data for January shows US imports from OPEC countries falling by 818,000 b/d, but
largely being replaced by an increase of 536,000 b/d from Brazil and Russia.
The Chinese continue to actively pursue foreign sources of oil with new partnerships to exploit
Iraqi and Venezuelan oil in negotiation.
Bankruptcy
Most authoritative sources are reporting that the Treasury has directed GM to prepare for
bankruptcy by June 1st. Government and industry officials continue to talk about a fast
“surgical” bankruptcy that would have a slimmed down, debt-free GM functional in a few weeks.
Others fear that the bondholders who could lose as much as $28 billion in the bankruptcy will
prolong the issue in court.
Total SA Executive speaks out in Der Spiegel interview
Michel Mallet, general manager of French energy giant Total’s German operations, was quoted
in an interview as saying that, “The old oil fields are dying. In the future, we will have to invest
more and more just to maintain existing production….Oil production will be technically complex
in the future, which makes it expensive. There are hardly any readily accessible oil fields
anymore. The fields on the floor of the North Sea, for example, are practically empty. New
reserves are only being found deep in the ocean, in remote regions like Kazakhstan or in the
form of oil sands. None of this is cheap to produce.” (full article in Peak Oil News, 4/15, #19)
Please review this site.
The Michael Laitman propose the only real solution to all the problems, very difficult, very hard, but is the only solution.
We have to unite force with Laitman and Marterson, in a mutual congress, the next congress is in May 15-17 for the North American Kabbalah Congress.
We have to unite.