coolhand49

Is This Oil Bubble Going to Deflate?

Georealist --> I agree with your views, for others a good read is Dr. Stephen Leebs "The coming financial crisis" Fundamentally - oil will go to a minimum of $200 a barrel, and our poorly prepared society will suffer greatly.

Getting ahead of this issue is where our Fed Gov has fallen very short, but then again - consumers have demanded vehicles to satisfy their "Needs" with cheap oil - industry followed suit - who was really interested in high mpg diesel vehicles? Only the kooks. Having traveled a bit - I personally would have liked to export the the US from Europe some of their smaller diesel vehicles, but the cost model didn't work.

What many folks do not realize is the the cost of diesel is what the underlying driver of inflation is - only the cost of gas is in focus.

The free market pricing is forcing change and will continue - I submit that a 50 cent a gallon tax on gas, with a decline of 40 cents a gallon on diesel would be a great move right now in reducing inflationary pressures. Whatever is left over needs to go into funding multiple alternative energy programs; nuclear, coal gasification, Wind, Solar.

CH