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Gold/Mining/Energy : PEAK OIL - The New Y2K or The Beginning of the Real End? -- Ignore unavailable to you. Want to Upgrade?

To: kryptonic6 who wrote (646)	5/30/2005 6:56:45 AM
From: Bearcatbob	Read Replies (1) \| Respond to of 1183

"The U.S. is a political fiasco, but granted it has not deteriorated anywhere near the point of Zimbabwe." I took your question seriously until I read the last sentence. Have a good day.

To: kryptonic6 who wrote (646)	5/30/2005 9:14:49 AM
From: Doug R	Respond to of 1183

It's the domino theory As peak oil works its way into the economy the first dominos start to fall. The economy is so interlinked that one falling aspect negatively affects another...or others. A lot of people mention the airlines that are really getting hit by fuel prices already. Also there's the credit rating woes of GM and Ford. War is one of the heftier dominos. There's no doubt that Iraq is an oil war although the rightwingnuts are still duped into thinking it's about democracy...or removing a thug from power...or WMDs...or 9/11...or flypaper...or... A good effort at constructing a forward timeline as to how the dominos can fall can be found here: deconsumption.typepad.com It has a 1 year track record so far and events appear to be moving ahead of that which was initially posited. Then there's the strain on individuals' ability to absorb higher energy costs: "The results of the Cambridge Consumer Credit Index wildcard question show that soaring gas prices are causing a real hardship for many Americans, particularly low-income consumers. If gas prices continue to remain at current high levels or even rise more, consumer spending on other less essential items will clearly be reduced in coming months. For the roughly half of Americans that already have burdensome debt loads, high oil prices are making it that much more difficult to keep up with their financial obligations," says Jordan Goodman, spokesperson/financial analyst for the Cambridge Consumer Credit Index. More than half of Americans (56%) say rising gas prices are a major concern for their household budgets and 32% say higher energy costs are a minor concern, according to the Cambridge Consumer Credit Index. Only 9% of Americans are not concerned about rising gas costs, while 2% do not purchase gas. Moreover, 53% of Americans said that rising gas prices will force them to make sacrifices or cut back on other spending, while 47% of the respondents said their spending would not be affected by the rising gas prices. Soaring energy prices are affecting lower-income Americans the most, with 69% of those earning $25,000 a year or less saying they are being forced to cut back on other spending, compared to 34% of those earning over $75,000 a year. internetautoguide.com