We Have Probably Entered a Global Cold War for Oil.
The only question is whether and when it breaks out from time to time into a Hot War. I was glad to see the report from Laguna Partners, which is along these lines, making the rounds.
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In addtion, while the world is no longer flooded with oil, it is indeed flooded with Dollars. The rise in commodities has only exacerbated this situation, creating greater liquidity, as dollars are being sent at a faster pace (velocity) to commodity producers. Many of the commodity producers, like South America, Former Soviet Union, and Africa also have enormous populations with hitorical, pent-up demand for consumer items.
I remain astonished that the discussion of Oil in the US, on TV, in print, radio among analysts, etc, is so excruciatingly undeveloped, and simplistic. (OK, not astonished. But the conversation reminds me of the Iraq War/WMD question. It all takes place on the most moronic level where the facts are taboo.)
LP |
