low interest rate ignite the house price. house owners have more equity to buy SUV which cause SUV all over the places, so more gas to spend and lead the gas price to skyrocket. Is the housing bubble ready to pop? why the economy has to be managed like a wild casio. hope, the Bernanke has the political conscience to put the interest rate in the right place. not like Greenspan "too political" on the low interest rate for political reason
2006-07-13 12:53:46 · 7 answers · asked by Anonymous in Politics & Government ➔ Politics
7 answers responded to my above question just about within 20 minutes after posted. why answers came in all at the same time? should I expect more answers out there?
2006-07-14 06:38:00 · update #1
The high price of gas and of precious metals is due to speculation and the deflating of the dollar. If there is a disaster, threat of a terror attack on a refinery or pipeline or just a refinery shut down for "maintenance" the price of oil will go up on speculation of spot shortages. It takes 45 days for the oil bought at that price to reach consumers here, but the price goes up right away. But when the price drops the cost at the pump doesn't go down right away. Also because we are buying so much imported goods and other countries are buying our debt, the strength of the dollar is slipping. Look at the exchange rates past and current. The best example is the rate on Canadian money...in 2000 you got $1.48 Canadian for every $1.00 US. Now it is $1.13 Can. for every $1.00 US. Getting the trade imbalance under control and becoming energy self sufficient will go a long way to settle the dollars fall.
2006-07-13 13:23:12 · answer #1 · answered by ggarsk 3 · 1⤊ 0⤋
In australia I heard the low interest rates and the high petrol prices were done so that we dont have extra money no matter which way things go. Its bullshit, I think its time governments, banks and anyone else involved in money grabbing gives us a break. We pay phenomenol amounts of tax over here as well as 10% gst (which I am sure will rise soon) and can only just afford the basics in life as it is. I would like to see prime ministers and presidents of the world live on our meagre wages and survive. Just one meal out for them would cover a months groceries for me and my family. Bastards. Sorry just needed a whinge.
2006-07-13 20:00:10 · answer #2 · answered by ? 3 · 0⤊ 0⤋
The high gas prices are caused by high demand for oil. CHINA is experiencing unprecedented growth, this is increasing the demand for oil, when the demand goes up, so does the price. You want prices to go down? Then stop buying crap made in China and do what you can to save on energy. Sometimes it's NOT about the US, and it certainly had nothing to do with the low interest rate.
2006-07-13 20:02:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The growing tensions between Iran and North Korea.
2006-07-13 20:02:23 · answer #4 · answered by KM 3 · 0⤊ 0⤋
I'm afraid it's the invasion of Iraq that is causing the problem and the US sabre rattling over Iran and North Korea.
2006-07-13 19:57:58 · answer #5 · answered by Jules G 6 · 0⤊ 0⤋
Americans waste more petrol than anyone else in the world.
I am just answering to get points
2006-07-13 19:56:07 · answer #6 · answered by ALAN JONES IS A WANKER 1 · 0⤊ 0⤋
hmmmmmmmm well we have a house, but we still have one midsize car and wont ever have an suv. dont lump every american into one barrel. thank you
2006-07-13 19:59:51 · answer #7 · answered by Anonymous · 0⤊ 0⤋