• Optimal Capitalism ->->-> Petro Dollars are already ENERGY backed d

    From BeamMeUpScotty@21:1/5 to jim on Tue Apr 23 16:59:04 2019
    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

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)