Wednesday, April 09, 2008

Crude Oil Sets New Record

Oil set a new all-time record today: hit $112 bucks a barrel on US inventory decline

"The price surge came after a US government report showed a sharp drop in oil inventories and by investors seeking refuge from a falling dollar which fell against the euro and the yen on views the US Federal Reserve could cut interest rates by a 50 basis points this month."

My thoughts:

This will only get worse over the long haul : As we continue to lower interest rates, print more money and monetize hundreds of billions of collapsing financial system debt, the dollar will continue it's slide into the abyss, forcing OPEC/others to eventually pull their dollar peg (here and here) while Iran and others completely refuse to accept US dollars for their Oil (here).

If this unwind goes smoothly AND if foreigners don't dump their > $4 trillion in dollar holdings in the process, we shouldn't be too suprised to see >$200 barrel oil and ~ $8 gallon gas in less than 5 years time (Final End-Game)

Better start thinking about it!


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