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Realistbear

High Oil Prices Not A Threat To Recovereh Says I M F

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http://uk.finance.yahoo.com/news/oil-price-rise-not-threat-to-global-recovery-imf-reuters_molt-7ad1f39acc1f.html?x=0

Oil price rise not threat to global recovery - IMF
14:09, Saturday 6 November 2010
KUWAIT (
Reuters
) - The International Monetary Fund does not see a rise in oil prices as a threat to the global economic recovery* and will closely monitor a new round of U.S. policy easing, a senior IMF official said on Saturday. "No, it seems that in the current environment the energy prices seem to be responding to strengthening growth certainly relatively close to a range that has appeared consistent with continued expansion in the global economy," first managing director John Lipsky told reporters on the sidelines of a meeting of Gulf policymakers in Kuwait.

Au contrarie, high oil and expensive petrol is mmmm-good for us just like debt and property bubbles are good. Those clever men at the IMF what would we do without them?

___________________________

* "It is still the Fed's decision of Wednesday which is boosting oil price," said analysts from Commerzbank. "The additional liquidity pumped into the markets by the Fed's treasury purchases should also reach commodity markets and is thus leading to increasing oil prices. What is more, the higher price level reflects the weaker US dollar which is a direct consequence of the ultra-expansive US monetary policy."

Edited by Realistbear

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What recovery would that be then?

Exactamente. The slight revival we have seen is probably as a result of the massive ECB-Fed-BoE bailout which has only exacerbated the thing that caused it all to go wrong in the first place: DEBT.

What make me laugh is the fact that the oil barons are already jacking up prices and the ink on the Fed's dosh isn't even dry yet!

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High oil prices clearly indicate we are having a strong recovery otherwise demand for oil wouldn't be so great pushing up the oil price.....

High oil prices are potentially indicative of three things:

Reduced supply relative to demand

or

Increased demand relative to supply

or

An infationary hedge by speculators on the commoditis market as a consequence of monetary incontinence on the part of CBs.

On what evidential basis do you assert that the recent rise in price is due solely or, even, primarily to economic recovery?

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High oil prices are potentially indicative of three things:

Reduced supply relative to demand

or

Increased demand relative to supply

or

An infationary hedge by speculators on the commoditis market as a consequence of monetary incontinence on the part of CBs.

On what evidential basis do you assert that the recent rise in price is due solely or, even, primarily to economic recovery?

As far as I know, supply has not been decreased? My eyes glazed over at the 3rd :P

Even so, use the rising prices your advantage. I choose to not drive a car, and own oil shares :)

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On what evidential basis do you assert that the recent rise in price is due solely or, even, primarily to economic recovery?

I would suggest reading more of my posts then you might get my humour.

I'm in the recovery what fooking recovery camp.

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Price of energy is a moot point here, as it can only really meet a certain level within an abundant market. Those that produce it, being the West, will have little to worry about as the cost can be absorbed.

The caveat is the direct correlation between energy abundance and prosperity curves.

If energy abundance becomes an issue, well, what do you think will happen?

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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