Energy Descent

[rynnor]

I wouldnt worry about it - the markets do a good job of rationing scarce resources and as the price of oil goes up other alternatives like tar sands become viable.

There will still be oil left for plastics etc. - it may also make proper recycling of plastics economically viable.

 

[Helme]

I'd seriously worry about it because the market isn't good at anything except giving money to people who don't deserve it. The food bubble is a good enough example of that.

 

[Chilly]

If the speculators got out of the market, it would be much more rational and as mentioned earlier act as a conduit for supply/demand to function and increase price to reduce consumption.

The thing is that every good, service or thing we buy is heavily dependent on the oil price. Everything is shipped around using diesel and/or marine fuel oil. Are you going to be able to afford a TV once it's shipping and manufacturing price has increased by 500% in relative terms to a locally grown spud?

 

[rynnor]

The food bubble is a good enough example of that.

Is it a bubble? Demand increased due to bio-fuels initially then more from the growing affluence of china etc.

Food is still cheaper relatively speaking than when I was growing up.

 

[rynnor]

Everything is shipped around using diesel and/or marine fuel oil. Are you going to be able to afford a TV once it's shipping and manufacturing price has increased by 500% in relative terms to a locally grown spud?

Its a tiny part of the price you pay - even at 500% you'd barely notice the difference.

 

[Helme]

Is it a bubble? Demand increased due to bio-fuels initially then more from the growing affluence of china etc.

Food is still cheaper relatively speaking than when I was growing up.

It was artificial demand mostly, from speculators. 2008 when it hit it's peak was the biggest wheat harvest in human history, with the prices at they highest they ever got in history as well - up to 10 times the 'normal' price.

How Wall Street starved millions and got away with it