oil as a weapon...

Ummm ... i dunno. It seems two things that are different from one another

On the one hand there was an economic thing where in my opinion they were creating tons of money on the sly. You gotta remember that a lot of this was done pre-recession. It heated up the global economy and things were banging along pretty good for awhile. The high scrap prices that we so dearly loved were probably a direct result of this.

Then came the crash where they had to create even more money to keep the banking system from collapsing.



It's kinda like party hardy with no limits and let the good times roll.

Then .... comes the morning after. You got a wicked hangover and are as sick as a dog for days.

---------
Oil is a commodity just like scrap. It makes sense that the price of oil would drop just like other commodities during the deflationary phase of a recession ?

Originally Posted by Scrappah

Ummm ... i dunno. It seems two things that are different from one another

On the one hand there was an economic thing where in my opinion they were creating tons of money on the sly. You gotta remember that a lot of this was done pre-recession. It heated up the global economy and things were banging along pretty good for awhile. The high scrap prices that we so dearly loved were probably a direct result of this.

Then came the crash where they had to create even more money to keep the banking system from collapsing.

It's kinda like party hardy with no limits and let the good times roll.

Then .... comes the morning after. You got a wicked hangover and are as sick as a dog for days.

---------
Oil is a commodity just like scrap. It makes sense that the price of oil would drop just like other commodities during the deflationary phase of a recession ?

Sigh... I was agreeing with you, Scrappah. Money and oil are the same thing. The U.S. dollar is also a commodity. Ever heard of petro-dollah? I was pretty sure QE started the end of '08 and has continued until today, and we will probably have another billions dumped the beginning of next year. Don't worry, it will probably work this time.