Walt,
The oil crisis in the 70's was triggered by the Israeli-Arab war and an
attempt by the Oil producing countries to effect the world in this.
Hakan
At 07:53 PM 9/30/2004, you wrote:
At 08:51 AM 9/30/04 -0500, Ross wrote:
>I just encountered two articles at my library that strengthens my
>belief that we are beginning to see the end of cheap oil NOW from how
>we've always known it.
Good article with some interesting points, but I feel the need to
quibble a bit.
The problem is that oil _is_ cheap, even at $50 a barrel because while a
barrel of oil is real, the dollar is not.
The "oil crisis" of the '70s was triggered by Nixon's decision to
remove the dollar's gold backing and OPEC's rational response to his
decision. Now, we're facing a similar situation. The world is being
flooded with dollar denominated debt, a tidal wave which is going to
affect the dollar denominated "value" of all commodities.
People talk about "fifty dollar a barrel oil" as if "fifty
dollars" means something. It doesn't. Each dollar is just a drop in a
vast sea of unsupported, unredeemable debt, and as foreign investors
start to catch on, the dollar is going to continue to fall in value. In
short, it isn't so much a matter of the cost of oil going up, but rather
the value of the dollar going down.
Walt
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