http://www.theundergroundinvestor.com/2007/05/a-politics-drive-high-gasoline-prices-in-the-united-states/ The definitive investment blog for investment news not discussed in the mainstream media Tue, 27 Jul 2010 15:07:47 -0500 hourly 1 http://wordpress.org/?v=3.0 http://www.theundergroundinvestor.com/2007/05/a-politics-drive-high-gasoline-prices-in-the-united-states/comment-page-1/#comment-15290 The Underground Investor - The definitive investment blog for investment news not discussed in the mainstream media Mon, 12 Nov 2007 08:43:44 +0000 http://www.theundergroundinvestor.com/2007/05/28/a-politics-drive-high-gasoline-prices-in-the-united-states/#comment-15290 [...] May 28, 2007 - The Politics of Higher Oil Prices [...] [...] May 28, 2007 – The Politics of Higher Oil Prices [...]

]]> http://www.theundergroundinvestor.com/2007/05/a-politics-drive-high-gasoline-prices-in-the-united-states/comment-page-1/#comment-7077 adam Thu, 07 Jun 2007 05:43:05 +0000 http://www.theundergroundinvestor.com/2007/05/28/a-politics-drive-high-gasoline-prices-in-the-united-states/#comment-7077 JS, one of the more interesting and paradoxical things about higher oil prices is it's deflationary effect on the US economy. I saw this first brought up by Galbraith in his book "Money: Whence it came, where it went". He in turn attributes it to a high ranking government official, when Galbraith advised on the econ policy during the 1970's. At the time, the inflation was raging out of control with most of the price increases coming prior to 1974, the middle east 'crises' hit suddenly taking oil prices to unseen hights. The basic deflationary effect is that oil producers take money out of the circulation faster than they can spend it. I wouldn't be surprised if a serious uptick in inflation is followed by some sort of disruption in the region. Interesting to read your perspectives, hope to discuss it further JS, one of the more interesting and paradoxical things about higher oil prices is it’s deflationary effect on the US economy. I saw this first brought up by Galbraith in his book “Money: Whence it came, where it went”. He in turn attributes it to a high ranking government official, when Galbraith advised on the econ policy during the 1970′s. At the time, the inflation was raging out of control with most of the price increases coming prior to 1974, the middle east ‘crises’ hit suddenly taking oil prices to unseen hights. The basic deflationary effect is that oil producers take money out of the circulation faster than they can spend it. I wouldn’t be surprised if a serious uptick in inflation is followed by some sort of disruption in the region. Interesting to read your perspectives, hope to discuss it further

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