Oil’s Higher than Ever — Even Considering Inflation

March 3, 2008 at 10:14 am (Oil)

Oil’s current price is even higher, in official inflation-adjusted terms, than it was during the Middle East crisis in 1979 – 1980.  Now, of course, I don’t believe the official inflation numbers, but regardless, this is an important milestone.  Especially considering there are three pain points; Iraq and Iran, Venezuela and Colombia, and Russia and Ukraine. 

In addition to the fact that oil being pegged to the ever-decreasing dollar is important for America’s perception and power influence, oil is the most important commodity.  If you took all of the companies that trade on the New York Stock Exchange and American Stock Exchange and added up their value, you’d find that roughly half of all the value was from companies that either pumped oil, processed oil, refined oil, transported oil, made energy or products from oil, or made products that consumed oil.

So, the price of oil is very important.  And, of course, this is why every battle we get in happens to be in an area key to oil distribution.  It’s our lifeblood.  If  you’re the former chairman of the Federal Reserve, you get to say that and not be vilified.

 Today’s article of doom: Bernanke urges banks to forgive portions of mortgages.

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