RE:RE:RE:RE:RE:What's up..Good morning Cloudy on this beautiful Sunday morning! Nice red dawn in these parts. Lots of super fine dust from the Sahara Desert is in the air absorbing all solar wavelengths except for the red which make it through to our eyes. Hot, hot Sahara causes thermals carrying dust way up into the atmosphere. Great for lots of rain and hurricanes because the dust serves as condensation media on which those micron sized water droplets aka clouds can condense on releasing their latent heat to the atmosphere causing air to become less dense, rise and become unstable. Natural cloud seeding. One thing leads to another.
Anyway I can see a situation where a spike in oil prices actually cause a decline in oil&gas sp because a rise in oil price would super charge inflation, interest rate increases and demand destruction. Counterintuitive as that may sound, in this economic environment where central banks have obviously lost control of inflation because they cannot do much about it beyond monetary policy and have no control on whether Russia invades the Ukraine, any further restriction on hydrocarbon supply would drive inflation up uncontrollably. Goldman Sachs is predicting 22% inflation in the UK next year.
I was talking about changing reference frames, composite functions and chain rule in previous posts. Like drawing a circle on a paper that's moving on a table, moving relative to the table in such a way that the circle being drawn on the paper is being projected as a square on the table. How to make a circle a square and visa versa. Or in short, how to square the circle? I salute anybody who can do the math to predict what's to come in this economic environment of rapidly changing, erractically behaving reference frames. Beyond my capabilties, that's for sure. Anyway have a great day!