Oil Prices Are Going To Kill Us… And, Surprise, Now Everyone Agrees

Posted: March 2, 2011 in Technology and Business
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For years I felt like I was the only one beating the drum that higher oil prices was the cause of the Great Recession.

My reasoning was simple: 

Higher oil means higher prices for everything.  Higher prices means less spending.  Less spending stops the great U.S. commerce engine… which affects the great commerce engines of the world.

What drove me nuts was, years ago, everyone seemed to love spiking oil prices… that they were somehow a positive indicator of growth… i.e., spiking oil prices meant high demand because of high growth. 

What a Krach!

Even as recently as a few months ago I pinged Rob Black — a really smart financial guy on the radio here in the Bay Area — asking his 30,000 foot opinion about the dangers of high oil prices… and, disappointingly, all he could give me was a 2-foot view that higher oil prices were good for his oil stocks.

Then oil hit $100… and at that exact moment — to my surprise and delight — everyone seemed to start talking about the potentially disastrously negative effect of higher oil prices on the consumer.

Thank goodness people get the issue now!

So… now on to the important stuff: 

We don’t need more stimulus or a QE3 or bailouts or whatever… we need to stop sending almost $1 trillion out of the country each and every year… we need our elected officials to motivate a conversion to natural gas and other cheaper/cleaner-burning energy alternatives… before it’s too late.

I hope you don’t think that’s too radical.  But it’s the new drum I have to beat.

BTW:  From a stock market perspective:  Oil up… stock market down.  No escaping that.

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