Friday, December 19, 2008

Oil is Not the Black Gold It Was Only Months Ago

At the New Paltz Journal, under a post titled What the hell?, Vandam points to a New York Times article titled Oil Producers, Users Call For Oil Price Stability, and in response to the NYT article states, among other statements,

British PM Gordon Brown comes along and wants to stabilize prices and forge a new “partnership” between the oil-consuming and oil-producing countries.

Would someone please tell that blinking idiot that price itself is the bloody partnership. That it regulates both consumption and production. And that high prices contain within themselves the seeds of lower prices, and vice versa. That oil prices are historically cyclical. That they rise and fall. And that consumption is a function of production and price; production a function of consumption and price. Price is the damn market. Even when someone is trying to fix it at one end or tax it at another. Price is what makes or breaks a market, increases or decreases demand. It is what the parties to the sale of a thing agree upon.

Vandam is correct, of course, and any arguments or whinings put forth or heard in rebuttal to Vandam’s statement that “price itself is the bloody partnership” are simply wrong.  Period.

Posted by John Venlet on 12/19 at 09:15 AM
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