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Opening Arguments

$100 good news

We love symbolic numbers. Remember all the ink given to the DOW crossing 10,000? How about hardcover books going over the $20 threshold? And, of course, there was gas going  over $1 a gallon, and $2 a gallon, and $3 a gallon. Now, we have the magic "oil at $100 a barrel" mark. This is almost universally seen as a negative -- The Journal Gazette put it on the top half of the front page. But consider:

Unlike the oil shocks of the 1970s and 1980s, which were caused by sudden interruptions in oil supplies from the Middle East, today's surge is fundamentally different. Prices have risen steadily over several years because of a rise in demand for oil and gasoline in both developed and developing countries.

The demand increases, the price increases. And the increase in demand means higher economic activity, greater development, better lives.
Posted in: Current Affairs


Bob G.
Fri, 01/04/2008 - 11:37am

SSHHHhhhh...that's supposed to be a SECRET.
Keep it to YOURSELF, before everyone ELSE finds out.



A J Bogle
Fri, 01/04/2008 - 11:45am

Approx 30/barrell is the result of geoplotical instability in the middle east, and 20/barrel is the result of speculation.

100 dollar an oil is not a good thing for working people who have already reached their elasticity point and cut out any unecessary drivng

increased demand also increases air polution and faster depletion of a limited resource

tim zank
Fri, 01/04/2008 - 1:54pm

AJ, have you got a solution besides just slitting your wrists? Sounds like you've surmised it's an obvious no win situation.