the2real4mafol said: Meanwhile in the UK, it makes marginal difference. Prices have fallen but no where nears as dramatically. It was £1.25/ Litre but now £1.07/ Litre. But over here, 70% of the petrol price is tax of some kind.
But to be honest, I think we need some deflation. Pay is stagnant and likely to stay that way, so any inflation is really worse.
I think alot of oil producing countries (except Saudi Arabia and maybe the UAE) will be hurt by the falling oil prices though. In the west, cheap fuel may help stimulate the economy but unless there is a shift back to more manufacturing here. I think the economy will remain hurt. The housing market and the debt from it, helps no one in the long run |
well its good for centraleurope. but we need more, we have to build a lot of solar in southern europe asap, they bleed a bit less now wit low oil prices, but energie imports are still the biggest problem for southern europe.
and its heavy deflationary force in europe, not so much in the noneoil states of the us. europe changed the drivingbehaviour not just because the gas prices went up. the people will not drive alot more because of cheaper gas here, so they have a lot more money.
this kind of deflation means no harm because the people will buy other things. the inflation is still there, just overshadowed by a short time deflationary force
its realy hurting the us, the russians dont have so big problems, they have enough fresh dolars to buy from outside what they need, and the oilprice didnt went down in rubel, the rubel went down too, so it doesnt matter much inside.
in the us on the other hand the oilprice does hurt. loss of a lot of well payed jobs, and a lot of defaulting small oil companys with huge debt.