US F18's intercept Russian Bombers

That's true, but oil is one of their major exports which is what brought back their country from collapsed economy during the 90s.

 

Putin is smart. I'm sure he has some grudge against USA. NATO is on Russian doorstep. The Orange Revolution is Georgia was covertly supported by USA and its allies. So, Putin is flexing some muscles, just to create some headlines, so that the world knows that Russia is still strong, do not under-estimate it.

Putin would love to wear-down America, economically. And he's enjoying the fact that oil and gas prises have risen to historic levels. He'd be praying everyday, and hoping that Bush makes another dumb mistake, and attack Iranian Nuclear Reactors, so that his country can earn a lot more from oil...

Thats why he's supporting Iranians by supplying Nuclear fuel. He wants Bush to do it again. He expects Bush would help him in his mission of increasing oil prises to 200$ a barrel. Putin doesn't care about anything else, but to wear down USA economically.

 

The long term price for oil is over $200. It has nothing to do with Russia or Iran. Its simply a matter of world supply and demand.

 

I think once humans commit to the efficient manufacturing of renewable energy sources you'll see the greatest level of worldwide wealth creation in history.

 

IMO, Nuclear energy is the best option, coz it is available in concentrated form. Within 20 years, Scientists would develop portable nuclear reactors, which would be safe enough to be fit in cars. In the next 100 years, we would be looking at using anti-matter for the generation of energy...

 

You are optimistic on the time frame. It would be great if you are right. If we focused on cheap renewable energy there would be enough wealth for everybody and there would be less, fear, greed and wars.

 

Some strange friends you have there... http://online.wsj.com/article/global_view.html

 

And as such, this even is irrelevant -- to us.

This event was only a "show" for the old hard-line communists in Russia. It was just Putin trying to pump up domestic political support.

This was a staged event, held only for a Russian audience and only to serve a political purpose within Russia.

It's like the little kids who poke the lions are the zoo with sharp sticks, because they are protected by the bars.

We will probably never know what internal political disaster made this altercation necessary.

 

At some point the price will effect our demand. Demand for oil in the united states last years was only 1% and China and India can't subsidize oil forever.

 

Weapons are overall fairly cheap. The entire production cots of the US M1 Arbams tanks with 9500 units was 40 billion. That's about 25% of the 2008 US tax rebates

 

It's relatively inelastic within this narrow trading range. This is because oil is amazingly cheap, because the sellers are not reimbursing the dinosaurs for their contributions to the oil supply.

If oil prices rise, we will see elasticity come into play. Until then, the most economically viable action is to use oil as long as it remains cheap.

Yes, it will suck when oil prices wander up past the $200/barrel mark. It will suck for the U.S. -- but it will suck much more for developing economies and for countries without strong agricultural opportunities for biofuel development. Mostly though, it will suck for the oil producing states. Most of them will then be poor and backwards.

 

I'd like to believe that, but not everyone is motivated by greed. Some are motivated by a thirst for power. Greed is just a means to an end for the power hungry.

Btw, oil prices vs. the US dollar are not the only way to look at global demand increases for oil. You have to factor in long term devaluation of the US dollar, relative to the increases in the cost of oil vs, the Euro and gold.

http://online.wsj.com/article/SB119941453085566759.html?mod=googlenews_wsj


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They can keep the rebate check and send me a tank

 

Oil hasn't changed a whole lot in price when you compare it to the price of gold. $200 per barrel will easily be reached by US currency debasement alone.

 

You think the value of the dollar was fall by another 60%

 

Probably. Paper currencies always devalue exponentially near the end of their life. It's just a matter of whether or not it's near the end of its economic life and I say it probably is.