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Higher Oil Prices Harm the Middle Class...In the Middle East


SilentScope001

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http://www.nytimes.com/2008/02/25/world/middleeast/25economy.html?pagewanted=1&ei=5088&en=e6731c907412aa38&ex=1361595600&partner=rssnyt&emc=rss

 

My god. I'm worried about inflation so much. If oil-producing countries are suffering, then it's a bad sign.

 

EDIT: An example of the turmoil...

 

In a few places the price increases have led to violence. In Yemen, prices for bread and other foods have nearly doubled in the past four months, setting off a string of demonstrations and riots in which at least a dozen people were killed. In Morocco, 34 people were sentenced to prison on Wednesday for participating in riots over food prices, the Moroccan state news service reported. Even tightly controlled Jordan has had nonviolent demonstrations and strikes.

 

Inflation was also a factor — often overlooked — in some recent clashes that were seen as political or sectarian. A confrontation in Beirut between Lebanese Army soldiers and a group of Shiite protesters that left seven people dead started with demonstrations over power cuts and rising bread prices.

 

In Bahrain and the United Arab Emirates, inflation is in the double digits, and foreign workers, who constitute a vast majority of the work force, have gone on strike in recent months because of the declining purchasing power of the money they send home. The workers are paid in currencies that are pegged to the dollar, and the value of their salaries — translated into Indian rupees and other currencies — has dropped significantly.

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The world just seems (is?) to be going to downhill every day. Soon, things will become so expensive no one will be able to afford to buy anything... and that is a very bad thing. Well as you said SilentScope,

 

[align=center]"If oil-producing countries are suffering, then it's a bad sign."[/align]

 

I tend to highly agree...

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Personnally, at this rate, I may never be able to afford a new computer, games, and such, what with the level of inflation there will be when I'm on my own. That and all these other crazy prices on things will eventually make life more miserable for me too... I'm already feeling the inflation and insane prices now...

Oil prices add up to a lot. Why just this year I've already payed about a hundred dollars on gas! (maybe more) Having to pay hundreds a year on gas, and with all the bills I have already just trying to get somewhere in life... *sighs* I'm thinking of taking up walking, but it's winter and it's icy, and I'd never get where I need to in time with all the ice on the roads and sidewalks... Stupid global warming... :yelhelp:

 

It's only gonna get worse...

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We have, but people (companies) don't want that "funny looking" ****.

Like a...Prius?

 

It does sound bad if the oil rich countries of the middle east are suffering inflation. I have a classmate who is from Saudi Arabia and he was explaining that prices were cheaper there than the US or something like that awhile ago. Then again we are a golbal economy now, globalization is taking effect with more people being connected online and standards in economic trade are developing for better business relations. Inflation is bound to happen.

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Inflation means that prices for goods goes up because the dollar is lowering in value. This is bad because if $20 is alot to you, it means maybe five or ten elsewhere if you do the exchange. I am not an economist but inflation in the extreme is bad from my understanding.

 

Slitherino: I thought a Prius was a hybrid. It does look like a kids toy car.

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Corinthian- Global warming has different weather effects in different regions. Mostly it is a flooding problem, but where I live, it makes the weather colder. It's just how the cold and warm currents work is weird. Where i am It's cooling, but in actually it is Global warming... Wierd, yes, but as far as I know, that's what global warmign does... All I've got to say is that it's about 4 times icier than it was last winter... And It's almost march, and it's still snowing occaisonally here... (mostly freezing rain that turns to ice later) That and tornadoes occuring palces other than the tornado alley region of the U.S is also global warming's fault... (That tornado in florida that happened recently was quite evident of how messed up the weather is getting)

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Slitherino: I thought a Prius was a hybrid. It does look like a kids toy car.

It's a hybrid, however it still uses fuel as it's main source of energy. And yeah, but I think that's a common issue with all hatchbacks. Ever seen the 80's Civic hatchbacks or the crx's? Those looked like the little Tonka cars they released in the early 90's.

 

I suppose however we should drop that discussion.

 

True inflation is a huge thing for all global economies, however if a producer is suffering the same rates as the major nations it exports to, there is a bit of a sign of worry that must be taken. They have every right to deny supply to other countries to service their own demands, however since they've already pretty much been doing that, I think this may be a sign that no one should ignore that we must begin higher production of alternative fuel.

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I was actually planning on a biodiesel powered drag car. Though I may just do a diesel, and convert it to biodiesel after I get it dialed in.

 

The good thing about the hybrids is that the engine does not have to be gasoline. Technically they could run the generator engine on diesel(and it would be more efficient anyway as you could get away with a smaller engine to do the work). I personally like biodiesel as it promotes recycling. And I think its funny to see stoners getting the munchies for chinese food as they smell your exhaust haha...

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  • 1 month later...

I'm sure the people who have the oil are rolling in cash. They've been (partially) responsible for rising gas prices ever since they figured out they could jack up the prices whenever they wanted back in the '80s. Of course, the way the Powers that Be (in the US) have been spending doesn't help either.

 

But I'm also sure the middle class in the Middle East is suffering far more than the middle class here.

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One has to wonder where all the violins were for the oil companies back in the 80s when the price went down <$20b, virtually scuttling domestic oil production. They make $$ hand over fist b/c of the amount of the product used at increasingly higher prices. If you want to put a serious dent in the price of oil and gas...expand domestic production and build more refineries. You can continue to look for alternatives and meanwhile try to build up a viable infrastructure for a post oil world. At the current ~$117/barrel, the billions of barrels in shale oil in the US west could be developed and effectively remove our dependence on middle eastern product. We (America) could be reasonably autarkical when it comes to energy if we'd just jettison all the obstacles the eco types and their congressional lackeys have thrown in the way over the last 20-30 years.

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If you want to put a serious dent in the price of oil and gas...

 

...stop using oil. :p

 

Seriously, the only reason that oil companies (in both America and the Mid East, and everywhere else for that matter) can afford to jack up the prices is because they know that everyone is still going to keep buying their oil. Simple supply and demand.

 

Of course, the demand has actually been decreasing, because hybrids and alternative sources are actually catching on now. That's when all those other problems come into play.

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Problem is that alternatives and hybrids are nowhere near in the quantity required to significantly impact oil/gas usage currently. In 15-20 years? More likely. India and China are gearing up, putting more pressure on oil supplies and ethanol (corn based anyway) is actually having a negative impact on global food prices, exacerbating world hunger problems. Unfortunately, simply stopping use of oil (you were being somewhat tongue in cheek, no?) is an impractical solution for aforementioned reasons. Like cutting off your nose to spite your face.

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