OT (Just what Peter was hoping to foster): John, I always appreciate your insight and elegant, pithy way of expressing it. As to the cost of SA oil or WTI crude and their derivatives (for any of us living in the NE, the harsh runup in HO prices, with heftier margins tacked on, is frightening and costly and contributes to the following point), <<[e]ventually, the cost of money (interest rates, or other return expectations) will increase.>>
Perhaps so, in some interim stage of indeterminate duration. But there is also an argument to be made that, as a greater proportion of income is applied to defray the costs of rather inelastic demand, there is less income left for discretionary purchases, therefore decreased end demand and declining production. Probably good for the balance of trade but not so good for gdp and worldwide demand. Perhaps, after a run-up in rates attributable to a cost-push, the wider effect will be seen as deflationary.
By the way, w/r/t the NYT article originally posted by Peter, Gerth is one of the Times' best and most experienced, but there were a lot of "not for attribution"-type quotes, for obvious reasons. I wonder what Boston area Yergin's response would be?
quid
PS I keep having this gnawing feeling that estorra news will not come on Friday or Monday, but a day or two early. |
