The author is the chief economist for a financial services company. He does not believe we will hit peak oil for decades, but he is concerned about oil prices and the U.S. economy.
The article explains why we've been so resistant to "demand destruction" this time around, and argues that our current situation is more like '20s than like the '70s.
According to his analysis, Bush is hoping that when the crash comes, Europe will bear the brunt of it.
Quote:
The last exit for a controlled realignment of currencies is past, the next stop is for one or more currencies to dramatically fall, and with them the purchasing power of the people inside the currency zone. Bush-Greenspan are betting that this will be Europe, that the Euro and other European currencies will meltdown as its central banks lower interest rates, allowing the US to continue buying oil on borrowed money from the Asian central banks.
But China may be the fly in that ointment. He thinks China has read the handwriting on the wall, no longer wants to invest in paper, and will be buying more "hard" assets...like Unocal.
Joined: Aug 13, 2004 Posts: 1185 Location: Richmond, VA, Pale Blue Dot
Posted: Tue Jun 28, 2005 9:18 am Post subject:
just a first reaction but, since when is "hoping" good foreign policy? _________________ "If you are a real seeker after truth, it's necessary that at least once in your life you doubt all things as far as possible"-Rene Descartes
"When you have excluded the impossible, whatever remains however improbable must be the truth"-Sherlock Holmes
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
News
Discussions
Resources
Members
Forum FAQ
Search
Usergroups
Profile
Log in to check your private messages
Log in
