[OPE-L] Henry C K Liu, "The Real Problems With $50 Oil"

From: glevy@PRATT.EDU
Date: Mon May 30 2005 - 07:46:02 EDT

+--------------------------------------------------------------------+ |
Henry C K Liu, "The Real Problems With $50 Oil"
|  http://info.interactivist.net/article.pl?sid=05/05/29/1410216

"The Real Problems With $50 Oil"
Henry C K Liu,
<www.atimes.com/atimes/Global_Economy/GE26Dj02.html ">Asian Times

After oil prices peaked above US$58 a barrel in early April, and stayed
around their current $50 range, the White House announced that it wanted
oil to go back down to $25 a barrel.
There is a common misconception in life that if only things could go back
to the ways they were in the good old days, life would be good again like
in the good old days. Unfortunately, good old days never return as good
old days because what makes the old days good is often just bad memory.
The problem with market capitalism is that while markets can
go up and markets can go down, they never end up in the same spot. The
term "business cycle" is a misnomer because the end of the cycle is a very
different place from the beginning of a cycle. A more accurate term would
be "business spiral", either up or down or simply sideways. Oil is a good
example whereby this market truism can be observed. When oil rises above
$50 a barrel and stays there for an extended period, the resultant changes
in the economy become normalized facts. These changes go way beyond
fluctuations in the price of oil to produce a very different economy.
Below are 10 new economic facts created by $50 oil.
This story continues at:
< http://info.interactivist.net/article.pl?sid=05/05/29/1410216 >

This archive was generated by hypermail 2.1.5 : Tue May 31 2005 - 00:00:02 EDT