High fuel prices explained! - Page 2 - PeachParts Mercedes-Benz Forum

Fulcrum525 · #16 05-01-2011, 09:43 PM

Quote:

Originally Posted by Medmech

The most sensible way to overcome this is to end our drunken stooper on oil. Since half of America is obese and we know that they squaller a large portion of health care costs I think that you can kill tow birds with one stone. If gas gets so expensive that people have to walk/bike to work they will lose weight, we will lessen out dependency on oil and the air will be cleaner.

Imagine how much fuel we would save if everyone was skinny!

(As in how much fuel would we save if the cars didn't have to lug all that extra fat around) Seriously....I bet it could be calculated.

MTUpower · #17 05-01-2011, 09:48 PM

Quote:

Originally Posted by kknudson

Well he's coralating historical events and using them to state why todays prices are wrong... Blah blah blah blah...
Disclosure, I am a speculator, not in oil or gasoline but currencies and stocks.

Translation: I use your money to make my money and create nothing and do nothing of real value while doing this: yet I think nothing wrong with this. I don't believe this is assisting in the downward spiral of the USA at all, and more people should be as smart as me.

sjh · #18 05-01-2011, 09:56 PM

Between 1920 to 1964 a gallon of gas cost a quarter.

During that same period of time the quarter was 90% silver. That is our currency was tied to a tangible commodity, precious metal.

Starting in 1964 the silver content of coins was drastically reduced. The currency was separated from any real asset. The Fed could and did print money whenever it wished.

Today, if you had a quarter minted between 1920 to 1964 and determined the current market value of silver in the coin it would buy a gallon of gas.

The single greatest cause of elevated gas prices, much less the rest of the deterioration of our nation (US), is the refusal to control our spending and to therefore print valueless money.

It's not the Arabs or Chinese who are injuring us. We're doing a fine job all by ourselves.

sjh · #19 05-01-2011, 10:01 PM

Quote:

Originally Posted by MTUpower

Translation: I use your money to make my money and create nothing and do nothing of real value while doing this: yet I think nothing wrong with this. I don't believe this is assisting in the downward spiral of the USA at all, and more people should be as smart as me.

Speculators keep markets healthy and every serious analysis indicates they lower prices.

Markets are simple (yeah right). People try to legally maximize profits. NOTHING in human history has generated more wealth and freedom than free market exchange.

Blame others all you want; the fault is solely ours. We vote these idiots in. We ask for incompatible goals. We get fat, lazy and ornery.

If this nation would get off its ass and get to work we could be great again. But after 50 years of being wimps it doesn't seem likely.

kknudson · #20 05-01-2011, 10:12 PM

Quote:

Originally Posted by MTUpower

Translation: I use your money to make my money and create nothing and do nothing of real value while doing this: yet I think nothing wrong with this. I don't believe this is assisting in the downward spiral of the USA at all, and more people should be as smart as me.

Please do not edit the quote to only show what you needor maybe just what you read, much like the Prof picked his stats.

That translation is yours, your opinion and may or may not be the correct translation.

#21 05-01-2011, 10:12 PM

I would make a distinction between investment and speculation (I own energy funds that I am holding for the long term). Investment is necessary, short term speculation can cause volatility.

kknudson · #22 05-01-2011, 10:13 PM

Quote:

Originally Posted by sjh

Between 1920 to 1964 a gallon of gas cost a quarter.

During that same period of time the quarter was 90% silver. That is our currency was tied to a tangible commodity, precious metal.

Starting in 1964 the silver content of coins was drastically reduced. The currency was separated from any real asset. The Fed could and did print money whenever it wished.

Today, if you had a quarter minted between 1920 to 1964 and determined the current market value of silver in the coin it would buy a gallon of gas.

The single greatest cause of elevated gas prices, much less the rest of the deterioration of our nation (US), is the refusal to control our spending and to therefore print valueless money.

It's not the Arabs or Chinese who are injuring us. We're doing a fine job all by ourselves.

That was another point I read the other day, I couldn't find the details though.

kknudson · #23 05-01-2011, 10:14 PM

Quote:

Originally Posted by Fulcrum525

Imagine how much fuel we would save if everyone was skinny!

(As in how much fuel would we save if the cars didn't have to lug all that extra fat around) Seriously....I bet it could be calculated.

Somebody did and it was actually quite significant.
OH they did not use skinny, they used the recommended height weight charts.

okyoureabeast · #24 05-01-2011, 10:29 PM

The oil commodities market was partially deregulated meaning we individually can't enter in, but a few big investment banks can because they were granted exemptions by the SEC. That along with a deflated dollar is why we are paying so much for fuel. I read a great article about the exclusive deregulation of that market not too long ago. If I can find it I will post it here, however I'm pretty sure it was you guys who introduced me to it.

However oil is a terrible thing to be burning anyways. Like we've been saying for years we need a better alternative.

Hatterasguy · #25 05-01-2011, 11:13 PM

Quote:

Originally Posted by sjh

Between 1920 to 1964 a gallon of gas cost a quarter.

During that same period of time the quarter was 90% silver. That is our currency was tied to a tangible commodity, precious metal.

Starting in 1964 the silver content of coins was drastically reduced. The currency was separated from any real asset. The Fed could and did print money whenever it wished.

Today, if you had a quarter minted between 1920 to 1964 and determined the current market value of silver in the coin it would buy a gallon of gas.

The single greatest cause of elevated gas prices, much less the rest of the deterioration of our nation (US), is the refusal to control our spending and to therefore print valueless money.

It's not the Arabs or Chinese who are injuring us. We're doing a fine job all by ourselves.

You can't have a modern currency based on precious metals, no developed country is seriously considering reverting back to the gold standard, it would cause major problems.

Silver like gold and oil are currently in a bubble.

Just because X amount of silver equals a gallon of gas doesn't mean their was inflation of X amount over that period.

Also remember that back in 2008 during the last fuel run up the price of silver was roughly $11 an ounce, so your comparison wouldn't have been relevant three years ago.

Lets put it this way, just because a 560SEL cost $45k in 1987, and a new S550 costs $98k doesn't mean their has been massive inflation in the past couple of decades. For starters your not comparing equal cars, the modern vehicle has more stuff in it and costs more to produce.

I'm not saying that the price of fuel shouldn't increase, it should. What I'm saying is the current increase isn't because of natural market forces and is being forced on the market by a relatively small group of businesses and individuals. Oil prices should go up a few percent a year to take into account inflation, increased demand, and regulations. Not 100% in 12 months.

Hatterasguy · #26 05-01-2011, 11:18 PM

Quote:

Originally Posted by okyoureabeast

The oil commodities market was partially deregulated meaning we individually can't enter in, but a few big investment banks can because they were granted exemptions by the SEC. That along with a deflated dollar is why we are paying so much for fuel. I read a great article about the exclusive deregulation of that market not too long ago. If I can find it I will post it here, however I'm pretty sure it was you guys who introduced me to it.

However oil is a terrible thing to be burning anyways. Like we've been saying for years we need a better alternative.

Best way to fix it is to force the people who play in it to take delivery.

amosfella · #27 05-01-2011, 11:21 PM

Quote:

Originally Posted by Hatterasguy

You can't have a modern currency based on precious metals, no developed country is seriously considering reverting back to the gold standard, it would cause major problems.

Silver like gold and oil are currently in a bubble.

Just because X amount of silver equals a gallon of gas doesn't mean their was inflation of X amount over that period.

Also remember that back in 2008 during the last fuel run up the price of silver was roughly $11 an ounce, so your comparison wouldn't have been relevant three years ago.

Lets put it this way, just because a 560SEL cost $45k in 1987, and a new S550 costs $98k doesn't mean their has been massive inflation in the past couple of decades. For starters your not comparing equal cars, the modern vehicle has more stuff in it and costs more to produce.

The interesting thing is they track very close to the same... Seems like everything tracks very close to it's gold and silver value as it was 2000 years ago... I never said about going back to a gold standard... But I believe that soon, people will demand it...
How ever, arguing about the future won't change anything. We won't know till it happens.
As we both know, a lot can change in a few short years... But my beliefs coudl be wrong... We won't know till it doesn't happen...