Everything is getting expensive
 

?$1,000 an ounce for gold! $100 for a barrel of oil! $5,000 an hour for hookers!!! Who can afford this?!!!? - Jay Leno (recently)

Like Jay has to worry about anything

Fuck gas, it's my wine habit I can't afford :winkwink:

Even drugs are much more expensive... how we are going to deal with this frustration with no drugs? :)

I thought drugs were getting cheaper. No?

things are not getting expensive our dollar is becoming worthless :2 cents:

No prices are going up. The more gas costs, the more it costs to get the items into the store. The higher the price tag to cover the gas.

I got some new clothes the other day. A Nautica shirt was 85$ and that same shirt 3 months ago was only 59$

it really is absurd.. milk has gone up 40 percent in two years...

The more your dollar falls the higher gas gets. So it does take more dollars to get the same item. However if you invested in things other than the dollar ie gold you are paying the same as you did say 10 years go.

My ounce of gold can still buy about the same amount of oil it could 10 or 20 years ago.

I had no idea an ounce of gold costed that much...........

Quote is slightly out of date. Less than $900 now.

I was really only concerned with the price of a hooker myself. But hell, girl has to drive and buy jewelry.

Welcome to the wonderful world of Peak Oil.

:(

I agree with both of you. High transportation costs and weak dollar are both effects. Then you also have the unprecedented situation of leveraged hedge fund money and sovereign wealth funds pushing the prices of commodities up in general. Oh, and greater demand by a rising worldwide middle class especially in eastern asia. There are also the ideas most recently popularized by writers such as Matthew Simmons and Jim Rogers which have probably influenced mnay investors. Throw Boone Pickens in there too.

Some items are actually decreasing in price though. Electronics, clothing, housing.

Hookers

:2 cents:

But "IllTestYourGirls" point is a good one. There is strong growth in many parts of the world right now but not in the US. as the dollar weakens oil has to increase in price in order to stay constant in those other currencies. This is just one of many factors of course.

Do you have a reference for the increase need for oil? I would like to see some graphs on it.

Ive been listening to Jim Rogers and Peter Schiff a lot.

http://www.eia.doe.gov/ipm/demand.html
You can download the worldwide demand data for 1970-2007

We're using about 85 million barrels per day now compared to 47 million barrels per day in 1970. The peak oil debate is about how much more than 85 million barrels per day we might be able to produce.

hahaha... but the hookers are getting better/sexier :)

Do you have a reference for that? ;-)

I am stocking up on stuff at Costco

Well thats not even double yet the price of oil since 1970 has gone up over 400%. And the USA consumption has not gone up that much either.

That is why I have always said its mostly about the dollar and the other issues are really non issues. Those other reasons may be real but have a lot lesser impact on the cost of oil and other goods than the sinking dollar.

I mean are we at peak gold too?

Thanks for the link :thumbsup

some investors are actually telling you to do that. If food prices go up 5% then you have gotten a good return for items you need. And it is more than likely food prices are going to go up more than 5%.

well, that the harsh reality we're facing.

Demand and price should be linear?

No idea if we are at or close to peak oil. It seems quite evident it will occur sometimes in the next 25 years. Everyone is guessing. The belief that we are very near peak oil -whether rightly or wrongly - may be having a strong upward push on the price too. Boone Pickens, Matthew Simmons et al have had a powerful influence on the industry in their proclamations.

The IEA published a forecast that production will rise to 116 million barrels per day. Boone Pickens says we aren't going to be able to produce any more than what we are producing now. is one of them right? or is it somewhere in between?

There are a lot more hints than just price that peak oil is coming. Many countries have already reached peak oil. The US hit it 40 years ago. The UK and Australia hit it a decade ago. Norway apparently just hit it. Hints out of Russia that they are at it. Fields like Cantrell have production declines much greater than originally expected.

Knowledge of "Peak oil" seems to have exploded the past few months.
http://google.com/trends?q=%22peak+o... e=2008&sort=0

Personally, I don't think anyone knows and there is just not enough info. The big problem in the analysis is what Saudia Arabia's production capability really is. Matthew Simmons' book takes the point of view that Saudia Arabian numbers are cooked way to the positive.

Doens't matter much to me. I rarely drive and can't remember the last time I filled up.

Matters to me. I have been long oil and natural gas stocks for a while. :thumbsup

Yeah, read www.lifeaftertheoilcrash.net last night, wish I am trying to dismiss as sensationalist, but given the recent price hikes, can't....

get hybrids :)

i paid 92 cents for a tomato the other day. I thought that was a ripoff.

Welcome to the future. ;)

I hate all these money problems.

I don't see how people can claim we've reached a peak in the production of oil when most of the planet has yet to be explored. Wouldn't it seem more likely that we have reached an end to the cheap oil that practically bubbles to the surface but that there is still plenty of $200+ oil left to be found? Just look at what Petrobras is doing with ultra deep water drilling and then realize that this sort of exploration is only in it's infancy. They say the U.S.A has reached it's peak but then something like 80%+ of their coast is off limits for exploration so who is to say there aren't massive new fields waiting to be found when the price is right.

That's basically true! :thumbsup

Same here! hm.. might gonna be investing on that since it never depreciate... :pimp

honestly guys, i see you "americans" complain about your gas prices, but honestly where i live the gas is FAR more expensive. 10.3dollars per gallon. and its expected to go up about 40% before it gets better.

so you have nothing to cry about.

how do you figure the price of oil is supposed to follow the same exact path as our usage. we continuously remove every year so that one year we used 47 billiions barrels, those 47 billion barrels no longer exist the next year, gone. add that over the last 200 years... basically what im saying is its a non renewable fuel so the price can only go up, its really inevitable.
plus other nations are using even more and competing with us.
include standard inflation
include the dropping dollar
we're actually drilling more than ever before and have more wells up than ever before, also drilling much deeper

its a culmination of everything, pinning it solely on the dollar isnt really much of an argument since if you do the math the rise would have only been what (of the top of my head) 20 bucks? how do you propose to account for the other 50-60?

thats your government taxing the hell out of you... if the tree huggers dont wake up, Obama is gonna do the same to teh USA...

www.americansolutions.com/drillnow sign the petition

was he EVER funny?