Wednesday, February 27, 2013

Oil is an outdated indicator

This is the difference between 2007 and now. Low energy prices. Relative to other costs


Oil prices were weak in the 1990's. We considered that a good thing. And what happened. Debt creation soared on the back of low energy and low interest rates as the economy roared.

Now we have a huge supply of Nat gas coming in to the economy. So far for electricity and home heating. Soon for transportation.

Don't look to the price of oil to be an accurate indicator of the strength of the economy. It is being replaced by NG, which is plentiful....



And that's the truth.

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