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To convince an Austrian economist Peak Oil is an issue, you NECESSARILY have to show that the current oil price is LOWER than it would be in a pure free market.
I don't get it. Can someone elucidate this for me? Is it even worth trying to understand what this means?

We have met the enemy, and it is us — Pogo
by Migeru (migeru at eurotrib dot com) on Mon Oct 29th, 2007 at 05:16:38 PM EST
If the price is lower, it means that there is more supply than there would be in a free market, i.e. that someone is manipulating the market by providing more oil than would be warranted, and thus bringing about a potential undersupply later than market players are expecting.

Otherwise, depletion is supposed to be a known fact, and prices will reflect the increasing scarcity of the product.

(Yeah, this is a theoretical construct)

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Tue Oct 30th, 2007 at 04:07:50 PM EST
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