Sunday, October 25, 2015

Nicholas Godfrey Period 8: The Middle East is Running Out of Money

Summary: Oil prices have fallen about 50% from about $100 a barrel to about $50. These lowered gas prices are doing quite a deal on the Middle East. The Middle East is running out of money. If the Middle East continues to not change anything about this price or make any changes to their spending habits then it is predicted that they are going to run out of money in less than 5 years. They have started by selling $4 billion in bonds, but something much bigger is going to need to change so that they don't run out of money.

Analysis: When the gas prices dropped, it seemed like such an amazing thing from this side of things. There seems like there is always a bad side to things. I know that if the Middle East decides to raise the gas prices again, then America will begin to suffer a little bit from raised gas prices and people are just going to start complaining again. I believe that we need to find some middle ground with gas prices. If the Middle East makes a lot of money off the oil, then we start to lose money, but if the gas prices drop and gas is super cheap like it is now, then the Middle East suffers greatly. There always are "seasons," per say, economically where we are doing great but then fall into a depression. It seems like you could put it on a graph and it would look like there was just as much low as high. We see this throughout US History in times such as The Panic of 1819 and The Great Depression. These may have been caused by different things such as war debt but we still see people struggling to make money and then it builds itself right back up.

Link: http://money.cnn.com/2015/10/25/investing/oil-prices-saudi-arabia-cash-opec-middle-east/index.html

1 comment:

  1. I agree. Gas prices have always put people in a negative state of mind because they are so high. We need to either, like you said, find a middle ground or maybe we can create a car that doesn't even need gas, but runs on solar power. I know this process is already in the making, but the sooner we can get everyone to start using natural resources, the less everyone will stress about not having enough of the "artificial" stuff.

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