FuturePundit

Asia Tries to Prick the Petroleum Bubble

Chinese demand will not go down. The rate at which it goes up might slow. But the rapid rate of economic growth in China makes a decrease in energy consumption very unlikely.

Why Oil Won't Penetrate $150/Barrel

Asian economic growth pushes up demand. Geological limitations and political obstacles restrict supply. Prices go up.

We need a recession in order to cut back demand. How high will prices have to go to destroy enough demand to lower prices? That's the big question.

Capacity Utilization Numbers Not Signaling Recession

High commodity prices combined with a declining dollar are causing a surge in industries involved in energy extraction, mining, and agriculture. The declining dollar alone is a boost to various manufacturing industries. But we will eventually get forced into an inflationary recession.