| There's no way a U.S. recession can be avoided. The sub-prime debacle is only the most glaring problem confronting business and consumers alike. What should stand out is the incongruous rise in oil price while there's a decline in business, this is usually the other way around as a decline brought on by a recession usually brings down energy prices through demand-destruction. Why is this not happening? The only answer is that oil supply cannot keep up with demand, even with a demand-destroying recession waiting in the wings.
Peak-Oil is here right now! There are no alternative fuels available that can take the place of oil for the mass transport of people, food and consumable product and we're looking into the abyss.
Some small pleasure will be taken when those who can still afford to buy a luxury car will not be able to drive it anywhere as the masses decide that taking pot-shots at drivers relieves the hunger in their bellies for the non-existent food they used to buy from the now non-existent supermarkets. |