The Oil Price Lever

Steve LeVine at Foreign Policy has a fascinating post that is best described by his tweet:

Could we be headed back to $55-a-barrel #oil? If you believe that#stimulus money saved the economy, the answer is yes.

5 Responses to “The Oil Price Lever”

  1. Eli Rabett says:

    Eli will take b.  Stimulus money saved the economy, which is, as they say, agreeing with economists.  Thank you very much.

  2. kdk33 says:

    Eli,

    Do you also belive in the easter… bunny.

  3. Pascvaks says:

    Nope!  $55/barrel oil is gone forever!  What we’re speaking of is NOT the value of oil, but rather the value of the US Dollar.  In a very real sense, we’re paying the same for a $.02 first class stamp that our parents and grandparents did (or a barrel of oil).  BUT we’re paying for everything today with grossly inflated greenbacks.  Now, IF they started printing BlueBack Dollars (vice the increasingly worthless GreenBacks) and valued them at 100 times the value of today’s Dollar then maybe we might see $55/barrel oil for a few days one day in the not too distant future.  (that would make the NEW Penny worth one of today’s Dollars wouldn’t it?)

  4. harrywr2 says:

    Up next, pigs flying

  5. Marlowe Johnson says:

    this is stupid. oil prices are being driven far more than ever before by basic supply/demand dynamics and most of the demand is now coming from countries not called America.  Second, if you don’t believe that the stimulus helped avoid a much more severe recession then you should take it up with Krugman and the other Keynesians.
     
    while flynn makes the not-so-earth-shattering observation that a global recession would have depressed global oil prices it doesn’t follow that persistently higher oil prices moving forward can be blamed on stimulus actions in the u.s. as he implies.
     
     

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