Page 1 of 1
oil price - deflation
Posted: December 15th, 2014, 9:29 am
by Sprinter
With liquidity measures withdrawing interest rates at historic lows cannot be cut further no fall back to stimulus and liquidity pumping easing steady low inflation is required. deflation at this time can unsettle the business equilibrium of stable growth corporates making money. any slowing of spending consumption can lead to a spiral back to recessionary circumstance with little option for full scale stimulus easing over easing. oil price decrease though is a boast in the shorter term for import trade balance consumer and government surplus but if it results in deflation can be alarming. remember the cost push inflation leading to 2008 crises oil prices rose to record highs and taking with it inflation rate hike didn't matter as oil was driving price with already indebted economies under stress. but this time it may be the other way round.
oil price - deflation
Posted: December 16th, 2014, 5:52 pm
by APlus
In my opinion there is nothing to be worried about, as there is a settlement of spot crude oil price as a virtual exchange currency via the Thai bacht, from the American dollar to the Russian ruble. Nobody really has the actual paper/coin/string of bits but both America, China, Russia and OPEC are happy to use it.With the unveiling of Hong Kong?s cross-border payment link between Hong Kong and Thailand which has a focus on facilitating a safer and more efficient arrangement for settling foreign exchange transactions between Thai baht and US dollar, the Advanced Markets brokerage does the "real" thing, via cah contracts with no time to expiary (spot crude oil, Russian ruble and Thai baht/US dollar), and little people do it with a limited time to expiry via crude oil futures.I believe that it does not look at all as a deflation if you consider it in crude oil units and not in fiat currencies units.?
oil price - deflation
Posted: December 20th, 2014, 11:31 am
by Sprinter
QuoteOriginally posted by: APlusIn my opinion there is nothing to be worried about, as there is a settlement of spot crude oil price as a virtual exchange currency via the Thai bacht, from the American dollar to the Russian ruble. Nobody really has the actual paper/coin/string of bits but both America, China, Russia and OPEC are happy to use it.With the unveiling of Hong Kong?s cross-border payment link between Hong Kong and Thailand which has a focus on facilitating a safer and more efficient arrangement for settling foreign exchange transactions between Thai baht and US dollar, the Advanced Markets brokerage does the "real" thing, via cah contracts with no time to expiary (spot crude oil, Russian ruble and Thai baht/US dollar), and little people do it with a limited time to expiry via crude oil futures.I believe that it does not look at all as a deflation if you consider it in crude oil units and not in fiat currencies units.?dollar hoarding smart alec. thats the link. its now oil hoarding and you will see oil cans exchanged for big mac. out of your vivid imagination.