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Post by eduardodelroice on Dec 6, 2008 23:49:30 GMT -5
lol trublu... here in my country now there are even more cars on the street... more traffic jams with cheap gas Quite! This cheap gas isn't actually a good thing for the environment. I do quite love being able to use public transportation and not have to pay for gas at all. Much better for the air! yep but sometimes people do not understand it
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Post by coldboneslove398 on Dec 14, 2008 10:32:36 GMT -5
or we just don't have public transportation in the suburbs....the only way you're going to get to where you're going here is by car, which is why I love the city much better. All I have to do to get to where I want to go is to take the subways and walk a few blocks
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Post by coldboneslove398 on Dec 14, 2008 10:36:39 GMT -5
I saw gas at $1.69 today....man it's a bargain. haha not really . They're still ripping you off since the value of the dollar keeps dropping. But don't be too happy at those low gas prices.....they can raise them back up on you again when you start buying more gas. My friend's dad was talking about buying a boat with the gas prices so low . I say to him, "What good is a boat when you're paying something like $5,000 to fill up that tank when gas prices go up again?"
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Post by eduardodelroice on Dec 14, 2008 18:13:54 GMT -5
That's right coldbones =] It's horrible how as soon as gas prices dropped here in my country you see more traffic jams than ever! I think that people still should try to save and do as if gas prices never went down
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myril
Veteran Detective
Merry One [/color][/center]
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Post by myril on Dec 15, 2008 5:51:52 GMT -5
Demand for gas dropped drastically, thanks to recession (less industrial demand mainly), so the prices drop. OPEC already complains and want to reduce output, hoping to push prices up again. If they don't manage that, result might actually be, that investments in looking for new sources could be cut down significantly, so in the long run it can have a very bad effect on gas prices (no new sources = shortage of gas thus way higher prices) To make things more complicate: At the moment for economy low gas prices are nice, on the other hand a deflation is looming if prices in general would go down more and more, and deflation is worse than inflation. Gotta love economic headaches.
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Post by eduardodelroice on Dec 15, 2008 13:37:56 GMT -5
Demand for gas dropped drastically, thanks to recession (less industrial demand mainly), so the prices drop. OPEC already complains and want to reduce output, hoping to push prices up again. If they don't manage that, result might actually be, that investments in looking for new sources could be cut down significantly, so in the long run it can have a very bad effect on gas prices (no new sources = shortage of gas thus way higher prices) To make things more complicate: At the moment for economy low gas prices are nice, on the other hand a deflation is looming if prices in general would go down more and more, and deflation is worse than inflation. Gotta love economic headaches. That's right myril... but I don't think deflation is that bad...
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Post by coldboneslove398 on Dec 17, 2008 23:02:06 GMT -5
what's the difference between deflation and inflation? You know out of all the business classes and college level business classes I've taken in high school so far, they haven't really touched on deflation. It's been mention briefly, but not really in-depth into deflation. We mainly talk about inflation.
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Post by eduardodelroice on Dec 18, 2008 1:19:52 GMT -5
what's the difference between deflation and inflation? You know out of all the business classes and college level business classes I've taken in high school so far, they haven't really touched on deflation. It's been mention briefly, but not really in-depth into deflation. We mainly talk about inflation. They talk more about inflation because it's more common Deflation is not that harmful as everyone says
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myril
Veteran Detective
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Posts: 795
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Post by myril on Dec 18, 2008 7:02:31 GMT -5
what's the difference between deflation and inflation? You know out of all the business classes and college level business classes I've taken in high school so far, they haven't really touched on deflation. It's been mention briefly, but not really in-depth into deflation. We mainly talk about inflation. They talk more about inflation because it's more common Deflation is not that harmful as everyone says Deflation means an ongoing decrease in the general price level of goods and services, while inflation is an increase of general price level. Sounds good on first thought, huh, lower prices ... The best known deflation happened during what has been called the Great Depression in the 1930. Another one was the recession in Japan in the 1990. Most see it as probably the bigger problem because of the experience with the Great Depression and because they see it stronger connected to poor economic growth than any inflation. A deflation can happen, when in general the will to buy something recedes, be it that interest rates are exceedingly high, that getting credits is getting a lot harder, because banks and people are more cautious and unwilling to take risks (doesn't automatically mean that interest rates are high), that there is less money than goods, that people (think they) have to keep their money together and so spend less, that business and government aren't investing money (or barely), when we produce way more than we (can) consume. It creates real value in money (while inflation destroys real value in money). It's said, that a moderate inflation is something we might be able to control, a deflation is at best hard to control if at all. We can't decrease interest rates actually lower than zero to hopefully stimulate business again (the Fed just did this, lowered interest rate more or less to zero, additionally they offer themselves as creditor) and printing more money is not such a good idea. So far inflation "only" has slowed down (called disinflation), not turned negative (what would be deflation). The threat is there though.
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Post by eduardodelroice on Dec 18, 2008 8:08:29 GMT -5
They talk more about inflation because it's more common Deflation is not that harmful as everyone says Deflation means an ongoing decrease in the general price level of goods and services, while inflation is an increase of general price level. Sounds good on first thought, huh, lower prices ... The best known deflation happened during what has been called the Great Depression in the 1930. Another one was the recession in Japan in the 1990. Most see it as probably the bigger problem because of the experience with the Great Depression and because they see it stronger connected to poor economic growth than any inflation. A deflation can happen, when in general the will to buy something recedes, be it that interest rates are exceedingly high, that getting credits is getting a lot harder, because banks and people are more cautious and unwilling to take risks (doesn't automatically mean that interest rates are high), that there is less money than goods, that people (think they) have to keep their money together and so spend less, that business and government aren't investing money (or barely), when we produce way more than we (can) consume. It creates real value in money (while inflation destroys real value in money). It's said, that a moderate inflation is something we might be able to control, a deflation is at best hard to control if at all. We can't decrease interest rates actually lower than zero to hopefully stimulate business again (the Fed just did this, lowered interest rate more or less to zero, additionally they offer themselves as creditor) and printing more money is not such a good idea. So far inflation "only" has slowed down (called disinflation), not turned negative (what would be deflation). The threat is there though. The Fed cut interest Rates to 0 and now the dollar is weaker than ever, how stupid!
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myril
Veteran Detective
Merry One [/color][/center]
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Post by myril on Dec 18, 2008 9:13:21 GMT -5
Eduardo, the move of the Fed is risky, but I wouldn't call it stupid. A weaker dollar is the lesser problem for them at the moment. Besides that a high exchange rate isn't always good for economy, it makes it attractive to have the currency, but at the same time it can hurt exports.
What Fed is fearing is deflation, they act now to stop it before it really gets started. At least, that's the hope. Hope is to make it cheaper to get credits, stimulating people and businesses to spend more money. Of course, seeing how reluctant creditors are after the crash of the credit bubble, it might not have much of an effect.
Falling gas prices are not the major indicator for inflation rate to slow down significantly or worse to turn even to negative (deflation), right. Even the so called core consumer price index (excluding energy and food) declined by 0.1% in the US in November though. You have to look more than 20 years back to find something alike.
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Post by Naj on Dec 18, 2008 15:33:39 GMT -5
It was indeed! I had to collect a lot of empty pop bottles to support my weekly trip to the corner candy store! Gas, is now below $2 here in the northeast.
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Post by coldboneslove398 on Dec 18, 2008 15:35:10 GMT -5
They talk more about inflation because it's more common Deflation is not that harmful as everyone says Deflation means an ongoing decrease in the general price level of goods and services, while inflation is an increase of general price level. Sounds good on first thought, huh, lower prices ... The best known deflation happened during what has been called the Great Depression in the 1930. Another one was the recession in Japan in the 1990. Most see it as probably the bigger problem because of the experience with the Great Depression and because they see it stronger connected to poor economic growth than any inflation. A deflation can happen, when in general the will to buy something recedes, be it that interest rates are exceedingly high, that getting credits is getting a lot harder, because banks and people are more cautious and unwilling to take risks (doesn't automatically mean that interest rates are high), that there is less money than goods, that people (think they) have to keep their money together and so spend less, that business and government aren't investing money (or barely), when we produce way more than we (can) consume. It creates real value in money (while inflation destroys real value in money). It's said, that a moderate inflation is something we might be able to control, a deflation is at best hard to control if at all. We can't decrease interest rates actually lower than zero to hopefully stimulate business again (the Fed just did this, lowered interest rate more or less to zero, additionally they offer themselves as creditor) and printing more money is not such a good idea. So far inflation "only" has slowed down (called disinflation), not turned negative (what would be deflation). The threat is there though. Ahh Thanks for the explanation on deflation ;D
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Post by coldboneslove398 on Dec 18, 2008 15:44:57 GMT -5
Eduardo, the move of the Fed is risky, but I wouldn't call it stupid. AMEN ON THAT!!! The night before when I heard the news about what they were going to do, I immediately invested into some shares of stocks again. The next day, Wall Street was up 300 or 600 points xD. I made a little bit of profit when I sold my shares I haven't bought stocks in a while.....when I saw the market slowly take a wrong turn down, I immediately sold off all of my stocks so I wouldn't lose even more money. I made a fairly good amount of money in my stock portfolio(albeit that it's a small chunk of change since I only invest about $100-$500 dollars or so) ;D. Sirius XM(satellite radio) was my most profitable stock investment.... Now, I don't own any stocks. Like most Americans, I don't have a lot of faith in our economy right now.
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Post by eduardodelroice on Dec 18, 2008 16:20:23 GMT -5
I still think that It's extremely riskful to have an interest rate of 0%
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Post by coldboneslove398 on Dec 18, 2008 21:24:03 GMT -5
lol but business is a risky...well..business
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myril
Veteran Detective
Merry One [/color][/center]
Posts: 795
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Post by myril on Dec 19, 2008 4:52:04 GMT -5
It is a bold step.
Gas price here at the moment at Euro 1.11 (makes 1.60 US Dollar as of today) per liter
Gas price is the only thing dropping here at the moment. Ticket prices for public transport are rising, energy costs are rising. Pfff. But computers and TV and stuff are getting cheaper... great, when you have no job, at least you can enjoy more free time with a fancy new TV, right. Wrapped in several sweaters and blankets, and of course you better enjoy just your new TV, not watching anything, saving energy costs.
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Post by savannahjan on Sept 28, 2009 8:43:29 GMT -5
Gas here is 2.32. Pueblo, CO
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Post by longislanditalian2 on Sept 28, 2009 11:03:50 GMT -5
I think it's around the same price as above, yet I only get gas every four weeks.
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Post by savannahjan on Sept 28, 2009 13:34:19 GMT -5
That must be wonderful! I wish I could get gas less. Though, I get it a lot less now than I used to since I live so close to work. Too far to work, but close enough to make gas last forever. I need a bike.
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