XPost: alt.politics.economics, alt.economics
On 12/18/14 2:11 PM, jim wrote:
BeamMeUpScotty wrote:
Why is it that when oil prices are high we hear that it "doesn't" create
inflation but when the prices are low somehow it becomes deflationary?
Why is it that you still keep lying about there being
inflation when oil prices are now falling?
OIL prices are apparently *ONLY* one cause of inflation.
What about an *ENERGY* backed currency rather than Gold backed or fiat.
When the dollar was tied to gold before 1971
the US economy was addicted to consuming
more and more oil. Before 1971 the US
consumption of oil doubled every 10 years.
Since getting away from gold standard the
US economy has become much less dependent on
consuming oil. The amount of petroleum that
the average American uses is less today than
it was in 1971.
Inflation is the result of a free market
economy ridding itself of the addiction
to consuming more and more of a dwindling
resource that it is addicted to.
This is a contradiction since the fossil fuel like oil and gas is NOT dwindling, and the USA in fact produces more than we did in the past
thanks to technology that has increased production and supplies by using
oil and gas that was once a wasted oil and gas and is now pumped out
using fracking.
The choice
was either endure inflation or putting an end
to letting markets determine prices. Nixon
tried price controls but it was obvious that
was not going to work.
Socialism never works...
--
That's Karma
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