PeakTrader.com

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PeakTrader said...

Based on profit levels and tax collections, the masses are underpaid and overtaxed.

Peak oil and overregulation don't help.

The historically slow economic recovery:

U.S. Incomes Remain Stagnant as Inflation Rises
May 27 2011

Technically, personal income rose by 0.4% during the month...But after taxes the increase was completely attributable to inflation.

Real disposable income remained essentially flat -- as it has throughout 2011.

In order to keep their spending growing, Americans are being forced to save less money.

If incomes continue to sag, then this could ensure that the recovery remains very slow. Saving has already been steadily declining, and at some point Americans might decide that they shouldn't save any less.

Pair that with zero income growth, and the very slow rise in real spending might grind to a halt.

Without additional demand, firms won't hire and unemployment will remain very high.

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PeakTrader said...

North Dakota added 250,000 barrels a day since 2004.

The greater Prudhoe Bay area went from producing no oil in 1976 to 2 million barrels a day in 1989.

ANWR, California, the Gulf of Mexico, etc. can provide much more oil.

The Democrats not only promoted risky loans in the housing market, for years, causing the financial crisis in 2008, they also prevented oil production, for years, causing the oil shock in 2008.

It's easy to blame the Republicans. I'm surprised they're not in jail.

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Ron H. said...

"The greater Prudhoe Bay area went from producing no oil in 1976 to 2 million barrels a day in 1989."

That's a nice history lesson, but I understand that current production is less than 500k bbl/day, and that 93% of the estimated ultimate recovery has already occurred. At some point in the not too distant future, production will no longer be sufficient to allow operation of the pipeline.