While the price of oil is a factor in any economic cycle it is only one factor.
Agree, but a very large factor.
The price of oil was very high 18 months ago.Aircraft were full and the Australian economy was in overdrive.
It is suprising how much inertia the economy has. The whole GFC is like a slow speed train crash, and it's not even half way through. It takes time for people's attitudes and spending habits to change. However, the high oil prices did contribute to the GFC, therefore the economy is no longer in overdrive.
Now the price has fallen the economy is still ok.
Something about the greatest economic crisis since the Great Depression...
If wages keep pace with the increase in oil prices and everybody has a job the economy continues to chug along.
Sadly, the data does not seem to support this. Real (inflation adjusted) US wages for example peaked in 1973.
Falling Leaf your Autumn has come, time to fly with the wind.
Very poetic, but fair enough. I was just trying to stop people attacking each other and squabbling over 'fags' and 'boilers', and suggest that there may be larger forces at play. But instead I just get attacked as being a wise arse.
I'll blow away now and see where the winds of change take the industry. Hope I'm proved to be totally wrong, for all of our sakes.
