Comments by "" (@pierreollivier1) on "VisualEconomik EN" channel.

  1. The oil industry is a very cyclical industry, because oil is so capital intensive to (find, extract, transport, refines, distribute etc) it rely almost entirely on investment, but companies can only invest when they have both the ressources and the need to do so. The problem is that our society relies on oil to function properly. So since oil has been discovered and has taken such an important role the same cycle is happening every 10/20y. The industry is doing fine, there’s even some surplus of capacity, so since there’s more oil than there’s demand the price slowly decreases as the profits and in the end the investment does. So they stop spending money or finding new sources and creating new oil rig and stuff, so a few years forward the demand is superior to the offer, so the price skyrocket, and oil companies start making huge profits allowing them to both invest to find new sources, and reopen less profitable sources, driving the price down etc etc. So unfortunately we will always suffer through the same issues.
    19
  2. The thing that i disagree, is that we should take into account technological progress into account, because it’s a very tricky subject, for example if you bought a 500£ computer today, to do some spreed sheets, some google, and some emails, and 2 years later you buy a computer that’s 1000£ but it’s twice as powerful as the other one, if you haven’t changed the way you use your computer this is inflation, but in my country they’ll say that since it’s twice as powerful therefore even tho it’s twice the price, it has actually not inflated. Same can be say for a dishwasher, maybe the new one clean dishes 10% better, but does it have an impact on your life ?
    8
  3. It’s such a shame really, the European Union is so positive, yet managed by the most incompetent and fanatics (arrogant?) people on earth. Every economist said that having only one currency, in a non optimal monetary zone was stupid, yet they did it anyway, everyone said hey be careful with the value of Euro it’s a slightly devalued DM which combined with the Hartz Reform will make Germany too competitive for the southern economy to sustain their pricy social security system. Everyone told them hey stop introducing competition where it doesn’t make sense, yet they went above and beyond to make everything plain stupid (yeah i love paying my electricity 10x what it’s worth even tho i have nuclear electricity). Loads of people told them hey stop saving the system by letting both government and companies go in debt you are actively interrupting creative destruction your just gonna make it worse. Well basically everything the European Union is doing is either dumb, counterproductive or hardly effective. So i won’t be the one crying when it ultimately disappear, i just hope that we will create a real union based on improved trading capital movement, and all that jazz, just not the political power, or the shared currency.
    2