NoWorries wrote:Frankly I don't think the economy could sustain $100 /bbl right now, much less $150.
I think the breaking point is around $100-$110, in the absence of recession. Anything much above that for 6+ months and the economy returns to recession territory.
TreeFarmer wrote:We could just stay in a permanent recession which alternates between mild and severe. Occasionally we might be out of recession only to fall right back into recession. If this is the case, expect it to continue until we either have substitutes for most of our oil needs or we just give up.
It is not that life has to be horrible in a long-term oil based recession but, it would almost surely be a life with limited luxuries.
TF
mos6507 wrote:The world couldn't afford this:
Whether it could afford $140 oil or not with no other polluting factors is hard to say. Obviously at certain inflection points life has to change. It doesn't necessarily mean skipping immediately to zompocalypse.
TreeFarmer wrote:We could just stay in a permanent recession which alternates between mild and severe.
rangerone314 wrote: I'm not sure we want to live in a world that CAN afford $200+ a barrel.
nobodypanic wrote:in my opinion that was caused because we tried to extract more wealth from our economy than she could deliver due to, in some large part, energy constraints.
mos6507 wrote:MonteQuest wrote:Before people will starve or go thirsty, they will stop consuming other things.
Same with energy.
What would you stop buying to afford $10 a gallon gasoline to get to work?
This doesn't cut evenly, though. Without rationing, in a time of high prices, the rich simply buy what they want in whatever quantity they want and everyone else gets cut out. Britney Spears will continue driving around in her Hummer with the last drops of gasoline while J6P can't get to work.
MonteQuest wrote:Makes my point either way; demand from some source will keep prices high.
mos6507 wrote:nobodypanic wrote:in my opinion that was caused because we tried to extract more wealth from our economy than she could deliver due to, in some large part, energy constraints.
I agree with that in theory although history is littered with cases of runaway greed causing major economic meltdowns decoupled from any sort of energy shortage and there is no reason the housing crisis couldn't have had the same impact we're now experiencing with oil at $1/bbl.
Remember that the form of economic meltdown we were all predicting was not some kind of techno clusterfuck with CDOs and liar loans leading up to FerFalocalypse hyperinflation. It was the end of the airlines, grounded delivery trucks leading to empty grocery store shelves, people who heat with fuel oil freezing solid in their beds, all culminating in a Mad Max zompocalypse.
So all I can concede is that this is the culmination of the failure of the US to properly mitigate its regional peak oil problems, but not that the credit crisis was caused by global geologic peak oil. Ever since The Carter Doctrine was coined, we chose to go down the debt route, the trade imbalance route, the outsourcing route, which is ultimately unsustainable.
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