Trump Promised to Lower Energy Prices—but It Wasn’t Supposed to Be Like This

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President Trump had vowed to lower energy prices. His friends in the oil patch never dreamed he would do so by upending the global economy.

https://archive.ph/iHpeb

 

Drill Baby Don't?

[jas007]

4 minutes ago, placeholder said:

President Trump had vowed to lower energy prices. His friends in the oil patch never dreamed he would do so by upending the global economy.

https://archive.ph/iHpeb

 

Drill Baby Don't?

Oil prices would have gone down, in any event, with all the new drilling nd opening up of territory for exploration.  Couple that with a worldwide slowdown, which was already under way, and lower oil prices are a given. Any this moment my oil stocks are down 4%, on average.  And they were dropping before that.  Anyway, lower oil prices are good for the economy.  

[placeholder]

14 minutes ago, jas007 said:

Oil prices would have gone down, in any event, with all the new drilling nd opening up of territory for exploration.  Couple that with a worldwide slowdown, which was already under way, and lower oil prices are a given. Any this moment my oil stocks are down 4%, on average.  And they were dropping before that.  Anyway, lower oil prices are good for the economy.  

It depends why they're lower.

 

https://www.macrotrends.net/1369/crude-oil-price-history-chart

 

Are they down because of a decline in demand? Or because of a surplus of supply? At any rate, whatever the reasons, they certainly don't provide economic support for Trump's "Drill Baby Drill" push, do they? Of course, oil drillers in the USA have been skeptical about that for quite a while.

[MalcolmB]

Trump is delivering…

lower asset prices

higher consumer prices for goods in the USA/inflation.

a stock market crash

and soon a recession.

 

He has messed up nearly every business he had after inheriting a fortune from his father, not paying contractors, over three thousand law suits, dodging loans etc etc.

 

He will stuff up American also.

About half of MAGAs won’t understand it and will believe him when he blames everyone else for the failure no matter how bizarre and illogical his excuses will be.

Hilary, deep state, China, the EU, immigrants, the democrats etc etc

 

It is very predictable.

The USA will never fully recover. 

 

 

 

[swissie]

So he is alienating his "big money" buddies. The High Tech guys as well as the "drill baby drill" guys.

 

Fine, in the end he will only have some staunch West Viginia Hillbillies as supporters left. But only if the coal mines re-open😂.

[swissie]

12 minutes ago, MalcolmB said:

Trump is delivering…

lower asset prices

higher consumer prices for goods in the USA/inflation.

a stock market crash

and soon a recession.

 

He has messed up nearly every business he had after inheriting a fortune from his father, not paying contractors, over three thousand law suits, dodging loans etc etc.

 

He will stuff up American also.

About half of MAGAs won’t understand it and will believe him when he blames everyone else for the failure no matter how bizarre and illogical his excuses will be.

Hilary, deep state, China, the EU, immigrants, the democrats etc etc

 

It is very predictable.

The USA will never fully recover. 

 

 

 

And no matter what, they will keep faith in Donald, as they have declared him as their "Messias".

 

Of course, I would never allow my daughter to marry a guy that was involved in 3000 law suits.

[jas007]

40 minutes ago, placeholder said:

It depends why they're lower.

 

https://www.macrotrends.net/1369/crude-oil-price-history-chart

 

Are they down because of a decline in demand? Or because of a surplus of supply? At any rate, whatever the reasons, they certainly don't provide economic support for Trump's "Drill Baby Drill" push, do they? Of course, oil drillers in the USA have been skeptical about that for quite a while.

No matter how you look at it, lower oil prices stimulate the economy.  For sure, the reason why prices are lower can vary - some good, some bad.  But still, whatever else is going on, lower oil prices are better for the economy than higher oil prices.  Right now, the world economy is so fragile that it simply could not survive the oil prices we'd see if the Straits of Hormuz were to be closed, for example.  

 

I'm addressing the USA economy, primarily.  I'm sure Russia probably doesn't like lower oil prices.  Ditto for Saudi Arabia and the other oil exporting nations.  

[placeholder]

2 minutes ago, jas007 said:

No matter how you look at it, lower oil prices stimulate the economy.  For sure, the reason why prices are lower can vary - some good, some bad.  But still, whatever else is going on, lower oil prices are better for the economy than higher oil prices.  Right now, the world economy is so fragile that it simply could not survive the oil prices we'd see if the Straits of Hormuz were to be closed, for example.  

 

I'm addressing the USA economy, primarily.  I'm sure Russia probably doesn't like lower oil prices.  Ditto for Saudi Arabia and the other oil exporting nations.  

Well, it depends upon how much wealth gets destroyed in the process.

[chercheur888]

49 minutes ago, swissie said:

So he is alienating his "big money" buddies. The High Tech guys as well as the "drill baby drill" guys.

 

Fine, in the end he will only have some staunch West Viginia Hillbillies as supporters left. But only if the coal mines re-open😂.

Some of his buddies already jumped over board, and of course he has to open coal mines as soon as possible because US made cars run only on coal.

Especially as Don Delulu has rewarded China an additional 50% tariffs.

[jas007]

11 minutes ago, placeholder said:

Well, it depends upon how much wealth gets destroyed in the process.

I don't think so.  Lower oil prices don't "destroy wealth," except maybe the wealth of the big banks that own oil stocks or the people who own oil stocks, but otherwise, the economy runs on oil. The cheaper the better.  It's the lifeblood of the economy.  Diesel fuel, heating oil, gasoline, chemical manufacturing.  Cheap oil stimulates the economy.  It's just that simple.  

 

As I said, though, the economy itself may be "destroying" wealth, but don't blame oil prices.  

[placeholder]

3 minutes ago, jas007 said:

I don't think so.  Lower oil prices don't "destroy wealth," except maybe the wealth of the big banks that own oil stocks or the people who own oil stocks, but otherwise, the economy runs on oil. The cheaper the better.  It's the lifeblood of the economy.  Diesel fuel, heating oil, gasoline, chemical manufacturing.  Cheap oil stimulates the economy.  It's just that simple.  

 

As I said, though, the economy itself may be "destroying" wealth, but don't blame oil prices.  

If stock shares in fossil fuels take a sharp turn downwards, that means a loss of collateral. If stocks in general are losing shares, that's more of a loss. Stock losses alone, maybe not so serious. But when it's accompanied by a general economic downturn, that's very serious.

[jas007]

1 minute ago, placeholder said:

If stock shares in fossil fuels take a sharp turn downwards, that means a loss of collateral. If stocks in general are losing shares, that's more of a loss. Stock losses alone, maybe not so serious. But when it's accompanied by a general economic downturn, that's very serious.

Again, don't blame lower oil prices.  Blame the overall economy.  Do oil prices affect banks and oil stockholders? Yes, but that's a drop in the bucket compared to consumer spending and manufacturing.  That's the real economy  Find me a consumer that doesn't do better with lower oil prices.  Find me a manufacturing firm that doesn't do better with lower oil prices.  You probably can't. 

[placeholder]

1 minute ago, jas007 said:

Again, don't blame lower oil prices.  Blame the overall economy.  Do oil prices affect banks and oil stockholders? Yes, but that's a drop in the bucket compared to consumer spending and manufacturing.  That's the real economy  Find me a consumer that doesn't do better with lower oil prices.  Find me a manufacturing firm that doesn't do better with lower oil prices.  You probably can't. 

Your explanation is based on microeconomics. Mine on macroeconomics.