Posted: 11/21/2008 9:06:15 PM EDT
| OK, I just don't understand this - when economy is going down the prices are going up, right? then what's up with the gas prices it's going down every day now... can someone explain me this? |
| Gas is going down because oil is getting cheaper. I believe it is the same for gold and other commodities because your money (U.S. Dollars) are gaining value because of the credit crunch which is resulting in deflation. I'm sure someone will be along to correct me. |
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Whoa, wait a minute! "The economy going down" does not equal "prices going up." The actual equation is vastly more complex than that. Actually, you are seeing a ton of deflation going on right now. The prices you have seen go up on some consumer products have largely done so because of higher shipping costs associated with (formerly) higher fuel costs, being passed on to the consumer. If fuel costs remain lower, you will see prices on products going down slightly, as competitive market forces drive them back down again. Crude oil has dropped because of fundamental laws of supply and demand. Enjoy. EDIT: And to think, I have to get up in five hours. Goodnight! |
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Quoted:
Gas is going down because oil is getting cheaper. I believe it is the same for gold and other commodities because your money (U.S. Dollars) are gaining value because of the credit crunch which is resulting in deflation. I'm sure someone will be along to correct me. 4k even :) |
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Quoted:
Whoa, wait a minute! "The economy going down" does not equal "prices going up." The actual equation is vastly more complex than that. Actually, you are seeing a ton of deflation going on right now. The prices you have seen go up on some consumer products have largely done so because of higher shipping costs associated with (formerly) higher fuel costs, being passed on to the consumer. If fuel costs remain lower, you will see prices on products going down slightly, as competitive market forces drive them back down again. Crude oil has dropped because of fundamental laws of supply and demand. Enjoy. EDIT: And to think, I have to get up in five hours. Goodnight! Well, I always believed that "economy down" = "inflation" = "price going up".... I guess it's not that simple... ETA: to omega62 - goodnight |