[LINK] The Australian Economy Runs on oil.
tomk at unwired.com.au
Tue Mar 1 09:34:25 EST 2011
>From: Scott Howard
>Sent: Saturday, 26 February 2011 1:09 PM
>To: Tom Koltai
>Cc: link at anu.edu.au
>Subject: Re: [LINK] The Australian Economy Runs on oil.
>On Fri, Feb 25, 2011 at 2:15 PM, Tom Koltai <tomk at unwired.com.au>
>>In Current currency, US Gallon pricing has been constant at approx
>>[2010 USD] per gallon since 1982.
>>In other words, the 25 cents you paid per Gallon in 1982 today has the
>>purchasing power parity (equivalency) of $2.82 in todays money.
>And Australia is almost exactly the same.
>According to the Australian Automobile Association, the price of
Unleaded in Sydney in December 1982 was 43 cents/litre. 
>According to the RBA, 43 cents in 1982 is equivalent to $1.29 in 2010
>According to the Australian Institude of Petrolium, the price of
Unleaded at the end of December was around $1.28.
Quote/ [From: http://kovtr.com/wordpress/?p=719] Self promotion...
In 1980, the price of a gallon of petrol in the US was $1.22.
In 1999, the price of a gallon of petrol in the USA was $1.22.
Yet according to the CPI, the price (in 1999) should have been $2.47.
And of course, the USD is depreciating at a much faster rate than the
we depreciated our dollar the day after Bobby got the big chair in 1983.
The US didn't.
Therefore, the lack of parity that would appear to be between our
currencies is based on the fact that Australia's economy has been
artificially deflated to encourage exports for thirty years and the US
Dollar has been artificially inflated [by central banks who are holding]
because it is the worlds reserve currency and everyone "owes" debts in
US dollars, [and deflated by non-holding central banks that are buying
bonds at severe discounts of 30-40%].
Of course if the Federal Reserve in the US keep printing Monopoly bank
notes, then the bond market will keep thrashing the long term value of
the dollar meaning that it can not remain as the worlds reserve
This long term self defeating activity has already raised it's head
amongst the oil producing nations that are preferring the IMF "basket of
currencies" or SDR's for oil payment than US dollars.
(It's not actually the IMF's basket, but China/Russia/Middle East).
Which is why the push is on in the USA since the Chavez incident to
develop a viable Hydrogen based transport economy. Australia needs to
emulate this MULTO RAPIDO!!!
I note that Ford and GMH are close with their LPG vehicles, it just
needs a little nod from the Government to accelerate LPG takeup. Sort-of
"Anyone trading in their petrol vehicle for a new Holden or Ford LPG
vehicle will receive a 5K cash bonus from the Government..."
Our balance of payments are closely linked to our imports of oil. Chart
-of-Trade-vs-Oil.png] (Full story: The Dollar, the Oil and Szun Tzu.
Part III The End of the World, Again ?http://kovtr.com/wordpress/?p=720)
Sorry more of that self promo biz...
Therefore a 5K cash bonus should encourage takeup at 7-8% as opposed to
3-4% with the resulting saving to the Australian economy equal to
approximately $8,000 saved per annum for every LPG conversion [less oil
imported and paid for with decreasing value USD].
Therefore it would be one of the few economy drivers that actually saved
taxpayers money and didn't add to their future indebtedness.
The faster we can separate ourselves from both oil and the US Dollar,
the happier we will be as a nation.
Oh yeah, then maybe we could relearn how to make things. Like pig iron
(instead of exporting raw iron ore).
Now that we have got rid of all those pesky industrial workshops that
used to make things, maybe we could learn how to make other things that
arnt yet made in China for $1.99.
Like, Uniquely Australian thngs...
That no-one else can make...
Bulk Eucalyptus oil...
Boy, it's a pretty short list.
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