Greenspan sees oil-price spike as short-lived (Marketwatch)

[cthrumatrix]

Greenspan: crude inventories could ease price frenzy By Greg Robb

WASHINGTON (MarketWatch) -- Fed chief Alan Greenspan said the current spike in oil prices may not be long-lived. Greenspan noted that futures prices for delivery of oil for summer delivery exceed spot prices. "That will likely support increased inventories of crude oil. If sustained, these market technicals could encourage enough of an inventory buffer to damp the current price frenzy," Greenspan said in a speech prepared for delivery Tuesday for the National Petrochemical and Refiners Association. Greenspan did not hazard a guess at the impact of current high oil prices on the U.S. economy, or discuss the potential impact on inflation. Some economists believe the higher energy prices will lead to slower economic growth in the second quarter.

http://www.marketwatch.com/news/newsfinder/pulseone.asp?guid={948284FF-4C34-44B8-A897-688E02F184D6}&siteid=mktw



Translation : the higher oil prices go up....the less the people can afford to "drive to work"

Therefore....the high prices will reduce consumption.......Brilliant.

You can all go back to shopping and wait for the next "pearl of wisdom".

[Melodybe]

1. My hubby read an article that said oil would be up to $100.00 a barrel

by the end of the year. Greenspan is such a fuckwad, who cares what he says, it will be in support of the neo-fascist agenda either way.

[central scrutinizer]

2. uh oh

Greenspan has been 180 degrees wrong on almost everything recently - glad I ride my bike to work every day.

[Demeter]

3. Like the Chinese Will Pay $100/barrel for Oil!

What, do you think they're made of money? No more so than we.

This is just like the California Electricity gouge.

[Richard D]

8. Well

Think Walmart and other goods manufactured in China. A whole lot of money is being pumped into China.

[TexasLawyer]

12. The Chinese are ready to pay A LOT for oil

I'm in a position to know about this. They are buying up production rights all over the world, and they have the huge cash reserves to pay at the going rate. (Our trade deficit is the Chinese trade SURPLUS).

A huge consideration for the Chinese is not gasoline for automobiles (although that is important), it is oil for petrochemical production, particularly plastics. You can use coal to fire a generator, but you can't use coal to make Barbie dolls and cell phones.

The Chinese intend to hold onto their manufacturing jobs, and they are aggressively investing for that purpose.

[Tempest]

18. China's recent oil deals

China's recent oil deals:
Iran, Venezuela, Brazil, Cuba, Saudi Arabia


U.S.' recent oil deals:
*crickets*

[Nordmadr]

21. U.S. recent oil deals...

1) Iraq
2) ANWR

Pending:
1) Iran
2) Venezuela
3) Syria

Olaf

[Tempest]

23. U.S.' recent oil deals haven't panned out

Thanks to pipeline attacks this week, no oil is being pumped and exported from Iraq. Iraqi oil revenues have almost completely collapsed in recent months.

ANWR won't go into production for almost a decade. Too little, too late.


Iran, Venezuela and Syria can protect themselves, unlike Iraq.

[Nordmadr]

24. Yeah, not panning out at all...I should have indicated my sarcasm.

It seems our country doesn't seem to think there is much oil left to be found, and no one seems to have any cheap extra. This creates a supply issue, which it seems this administration is determined to ATTEMPT to solve by force.

Energy wars BAD...

Olaf

[saigon68]

16. They have BILLIONS OF WALMART DOLLARS for their crappy stuff

And no place to spend the monopoly money. Remember its worth a whole lot less than it used to be.

[Tempest]

17. The difference is

China is paying for the oil using its surplus of U.S. dollars.

The U.S. is paying for oil by issuing more debt.


So who's in the position of strength? Who can hold out the longest and not suffer any consequences?

[cliss]

22. It's always a question

of staying power, isn't it? You're right: who can hold out the longest in a war of wills? Answer = not us.

Picture the US as a fat, bloated tub of lard, reaching waaaay up in the cupboard to find one last Twinkie. Stretches with all his might. Curses. Empty.

What to do? The point of desperation is reached in about 25 seconds....no long hesitation there.

The answer is that the US would not even last 1 week without our precious Black Gold. Not even 1 day. Visualize the Middle Ages.

This also explains the extreme belligerence and hostility with the Bush Administration.

[BlueEyedSon]

4. Well he's been extremely forthcoming, clear, and accurate with the info

up til now, so I see no reason to doubt it!

[Robbien]

10. So true. No one can ever accuse Greenspan of being a cheerleader

for this economy. You can always expect the straight dope from him.

Ha!

[cthrumatrix]

5. LOL...here is more. "Don't tell people...have to keep the markets going"

Greenspan said policymakers should be careful about how they respond to the
energy crunch. "To be sure, energy issues present policymakers and citizens
with difficult decisions and tradeoffs to make outside the market process," he
said. "But those concerns, one hopes, will be addressed in a manner that, to
the greatest extent possible, does not distort or stifle the meaningful
function of our markets."

[Nordmadr]

7. Yeah, I loved that part...

the market is being affected by energy, but don't tell anyone...we don't want to create a panic that would shock the market.

So, putting all of that information out there would make people worry? Why would it do that if there wasn't something to worry about? Juat let the market fucntion as long as it can and everything will be just fine...trust me.

Olaf

[Robbien]

11. There may be tradeoffs between food or utilities for the commoners

but don't dare let that effect market profits.

[Career Prole]

6. Greenspan...he's become the Fed's Drudge.

*********BREAKING*********
MORE GREENSPAN PARTISAN HACK SHIT!

I stopped listening to that fossil after the shrub tax cut cheerleading he did.

[barb162]

9. agree

[UCLA Dem]

20. fossil. nice...still snickering

[bunny planet]

13. Greenspan is a liar.

[underthedome]

14. I agree with GS. So why is Bush filling up the reserves? A ty to big oil

Oil prices will come down as more production facilities come online. But filling up the U.S. reserves at these prices makes no sense other than to further line big oils pockets (and his own).

[neverforget]

15. Sure Greenspan and those surpluses were a danger to the economy

:eyes: He's such a political hack it makes me sick! :puke:

[UCLA Dem]

19. Wow. What insight. Now what is it we pay him for again???

[Yo_Mama_Been_Loggin]

25. Greenspan you four eyed bastard

What the fuck do you know about the world's oil supply?

Deal with monetary policy and shut the fuck up.

[caligirl]

26. Greenie schilling for dubya again. He is such a schill. n/t