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Originally Posted by classicman
Hey Tom - you aren't the only one reading The Economist - reference ... seems as though you were presenting their opinions as your own in post #5. Just sayin.
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The Economist only reiterated what I also have been posting for some time (except a newest fact - bio-fuel).
I forgot to include another reason for major price increases. Massive and wasteful spending on an unjustified war and irresponsible economic stimulus will now appear on spread sheets. The resulting dollar devaluation further increases oil prices because the world has long been awash in too many dollars. In a previous post, I noted how some countries were suffering increased inflation due to too many dollars in their economy.
But as Cheney said, "Reagan proves that deficits don't matter." The resulting economic punishment is no accident. After all, those money games typically take four to ten years to appear as economic harm.
Massive oil price increases when nothing tumultuous occurred in the world. What happens when something serious happens to disrupt supply?
Never forget lessons of the 1970s when America's political agendas and a lying president made America so internationally unpopular (including an attempt to subvert the Australian government), when American oil imports exceeded 50%, when American products (i.e. GM cars) were routinely stifling innovation and foolishly blaming environmental, et al, when America was spending wildly using economic stimulus to mask economic mismanagement in government. And then something tumultuous happened. What is different today? We are still waiting for that something tumultuous to happen.
About six month ago, I suggested that everyone get their financial affairs in order; prepare for a serious economic downturn. We will not see the damage created by high oil prices for many years. That is how economics works. Everyone should be wary even of an unnecessary war that we have not yet paid for.
Happy "Mission Accomplished" - now five years old and still to be paid for.