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The Credit Crunch Is Good For The Environment

by Sputnic | August 27, 2008 at 09:42 am | 346 views | 23 comments | 2 recommendations

Spiralling petrol prices in the uk and economic slowdown caused by the credit crunch is having some unexpected beneficial side effects on the uks roads. People are getting from A to B quicker with less stressful journeys as a result of an estimated 12 % less traffic on the roads that sees a typical hour journey reduced by almost 5 minuts. With petrol prices currently standing at £1. 20 per litre together with inflation double government targets and ever rising unemployment rates its not hard to see why people are finding alternate forms of transport more desirable. It is estimated that half a million bike journeys are undertaken in London alone every day. Those that remain in their cars are helping the environment and their finances too by reducing speed and burning less fuel as a result. Good news for the environment bad news for bankers.

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eastvanray
eastvanray
flagged this story as Good Stuff

at 18:10 on August 27th, 2008

Sputnic, I like this story. It's good stuff.

The free market, left alone will always force adjustments in our behavior theough the price mechanism.  It is only when prices are controlled that no feedback is provided to consumers and scarcities are ignored.  We are seeing the appropriate econoomic response right now to rising oil prices.  Investments in alternative fuels and electric vehicles are the direct result.  Countries with fixed (subsidized) fuel prices have seen no reduction of consumption and no increase in alt fuels.

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Sputnic

Using economic persuasion is a left wing idea. High tax rates on fuel here in the UK to discourage use has led to the positive reduction in car journeys that we are witnesing today. The market if left on its own is a monster and leads to famine, war and has led to global warning. For forty years scientists have been warning that our gluttony is unsustainable. Their reward was to have their funding interfered with by market forces that didnt want the public to hear their message. Development of renewables should have and would have happened decades ago if it wasn't for the untamed capitalist beast

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eastvanray

Wow Sputnic you do not have to repeat yourself.  We are capable of comprehending your comments the first time.  As for your assertion that somehow capitalism leads to famine, war and global warming, you are grossly misinformed.

Any student of history will know that death, misery, famine and environmental destruction has tended to be a characteristic of socialists/communist regimes.  Look at Africa where totalitarian socialists wage perocial wars and "re-direct" resources from food production to war production.  Remember bread lineups in the Soviet Union?  The inability of the Cuban people to afford meat?  How about the environmental devistation of East Germany and Poland under socialism?  How about China?  They have damaged their own environment so bad the communist government will not let you take pictures of it or you go to jail.

The solutions to famine and global climate change are ALL coming from democratic capitalist countries.  The only people who do not like capitalism are those too lazy to take advantage of its inherent benefits.  Lazy people who are too weak to do for themselves and want Big Brother to provide for them are the only benefactors of a planned economy.

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Sputnic

CIA dependent on usa domestic arrangements backs regimes that supply cheap minerals to international markets or us companies "competition" militarily or otherwise keeps prices "competitive" . Currency speculators cause huge upsets to third world countrys, the national equivalent of buying penny (cent) shares. Trade restrictions (free market ? [for whome] ) on cuba (stolen by the usa in 1892 from the spanish) are the cause of the shortages in cuba. Fidel castro is a Stalinist not a socialist, as was chairman Mau. China has been a capitalist dictatorship for about the same amount of time as Russia. Some kind of server problem makes me "repeat myself" . Although when something is right it is worth hearing again .

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eastvanray

Cheap minerals?  Obviously you know nothing about the mining business.  Minerals are outrageously expensive.  They trade on commodities markets where supply and demand determine prices.  Speculators can influence prices in the short run but speculators are not some cabal working like some huge conspiricy to some political end.  They are simply betting on which direction a commodity will move.  If you look at brokerage fund and hedge fund income statements you will learn that these traders are not making huge windfall profits.

As for Cuba.  What is wrong with a country having trade policy?  Would you want a world where some international Government forced you and your people to do business with yor enemy?  That is crazy!

And it is Mao not Mau and Stalanist/communist/Maoist/ Trotskyite/socialist it is all the same thing....no liberty, no freedoms, no justice, no democracy.  If it was such a great system they wouldn't have to threaten and imprison people who want to leave.  No sir, democratic capitalism provides the most wealth for the most people.  Some do better than others but that is the way of nature - survival of the fittist.  The losers beg for big government.

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Sputnic

CIA dependent on usa domestic arrangements backs regimes that supply cheap minerals to international markets or us companies "competition" militarily or otherwise keeps prices "competitive" . Currency speculators cause huge upsets to third world countrys, the national equivalent of buying penny (cent) shares. Trade restrictions (free market ? [for whome] ) on cuba (stolen by the usa in 1892 from the spanish) are the cause of the shortages in cuba. Fidel castro is a Stalinist not a socialist, as was chairman Mau. China has been a capitalist dictatorship for about the same amount of time as Russia. Some kind of server problem makes me "repeat myself" . Although when something is right it is worth hearing again .

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eastvanray

Cheap minerals?  Obviously you know nothing about the mining business.  Minerals are outrageously expensive.  They trade on commodities markets where supply and demand determine prices.  Speculators can influence prices in the short run but speculators are not some cabal working like some huge conspiricy to some political end.  They are simply betting on which direction a commodity will move.  If you look at brokerage fund and hedge fund income statements you will learn that these traders are not making huge windfall profits.

As for Cuba.  What is wrong with a country having trade policy?  Would you want a world where some international Government forced you and your people to do business with yor enemy?  That is crazy!

And it is Mao not Mau and Stalanist/communist/Maoist/ Trotskyite/socialist it is all the same thing....no liberty, no freedoms, no justice, no democracy.  If it was such a great system they wouldn't have to threaten and imprison people who want to leave.  No sir, democratic capitalism provides the most wealth for the most people.  Some do better than others but that is the way of nature - survival of the fittist.  The losers beg for big government.

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Sputnic

You know nothing about politics. The list you mentioned are not the same hence different names socialism is freedom. Tell someone trapped in poverty with more unemployed people than available jobs and no access to health care that they are free. Miners are capable of fixing prices and i said currency speculators not mineral speculators. I think you may have something deeply wrong with your brain.

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Sputnic

If you are educated in politics then you must be a liar. Particularly in regards to african dictators with swiss bank accounts that claim a political allegence. They are liars too. Mineral prices can be manipulated by those in a position to control supply and influence demand (translate into technical terminology if it makes you feel happy). Any more statements you have to make regarding spelling mistaks wood bee appreciated.

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eastvanray

By the way please also read the NP terms of Use.  I believe ad hominum attacks are prohibited.  So, for your edification that means you MAY prove me a liar but you may not make an unsubstantiated attack on my truthfulness.  So prove your case or appologize, sir.

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eastvanray

You need to study the structure of the mining industry (and read about basic supply and demand).  For a mining company to influence the price of any particular mineral they would have to be a major component of the supply of that mineral.  If a company WAS a major component of the supply (very rare) then they would have to close down their operation as that is the only way they could restrict supply.  So while prices might temperarily rise the company that created the price inflation would not be able to take advantage of the increased price for as soon as they reopened their mine to see into the increased market the market price would drop due to the expectation of the additional supply (that is why markets are so efficient).  In the end the only companies that would benefit would be the competitors of the company that shut down to cause the rise in the first place.  Add to that the fact that any CEO that proposed something as stupid as this would be immediately fired by his board.  If you want a real world example of why manipulating mineral prices will lead to going broke study the Hunt brothers and their attempts to corner the silver market.

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Sputnic

Perhaps I was a bit flippant in calling you a liar. I made my case as regards politics in earlyer comments. Before OPEC oil was sold much more cheaply on "the market". Corruptors always have ways and means of doing things to make an illegitimate profit. Nigerian oil barons blow up pipelines, then, while they are being repaired put in a tap part way up the line to siphon off (estimated) 2- 3 billion dollars worth each year. This could be sponsored by the companies, certainly the Nigerian government is turning a blind eye. The capitalist system is based on credit (against gods laws, I am a religious man). Africa was tricked into debt in the seventys, as a result of repayment of interest (riba, forbidden in islam [jesus overturned the tables of the money lenders] ) Africa starved in the eightys. Most of the mining infer structure is owned by outsiders and profits are taken out of the continent

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Sputnic

World war two was caused by the 1929 stock market crash. Germanys Bankrupt middle classes saw hitler as their savior. The 29 crash was caused by an early form of the futures market , gambling on what would go up and what would go down. Look at all the bad that came out of that war. The rise of stalin (in charge before but with a cemented leadership afterwards) the nuclear arms race, the cold war. Im no imperialist but the break up of the British empire caused chaos around the world, things are worse under the American empire. Interest (futures market) = capitalism

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eastvanray

If you do not believe in interest I am curious how you live?  No credit cards?  No mortgage? No car loan?  I would be much worse off without the ability to borrow when it serves my interest.

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eastvanray

If you do not believe in interest I am curious how you live?  No credit cards?  No mortgage? No car loan?  I would be much worse off without the ability to borrow when it serves my interest.

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amyjudd

Please remember our code of conduct when replying to comments from other members.

Thanks!


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Sputnic

Gods law is law as far as I am concerned. Even if something is a bit inconvenient it is for the best in the long run, as history has shown and is continuing to show. THE CREDIT CRUNCH

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eastvanray

I am not debating religion.  I am asking an honest question:  How does someone living in London get by without debt?  I can understand if you have no mortgage (maybe you rent or own outright) but without a cred card life is pretty difficult.  How do you get around the restrictions of life without credit?  Do you ever stay in a hotel?  Rent a car? Make a major purchase ?

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Sputnic

Just pay cash. Bit old fashioned, like to leave the house sometimes, go to shops. Never bought anything online. I am thinking of getting a debit card though. I have a religious question for you though ; how do you explain the scientific miracles of the koran? A book 14 centuries old with details about the development of the human embryo, and the formation of columbinus (rain) clouds?

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eastvanray

I have not read the Koran so I really couldn't comment on what it contains. 

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Sputnic

Scientific proof of god. I was an atheist and hedonist untill I learnt the truth.

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eastvanray

Glad to know that the whole religious debate is now over. 

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Sputnic

I like to know what makes people tick too, to know why people are the way they are. Why are you so ante religion ? I plan to write some pieces on science in religion, hope that you will read them. Religion is often used to oppress, it also says in the koran that tyrants and oppressors will burn in hell

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August 27, 2008 at 09:42 am by Sputnic, 346 views, 23 comments

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