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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: maceng2 who wrote (67186)	8/9/2005 5:45:09 PM
From: Elroy Jetson	Respond to of 74559

Increasing oil prices should have led to a recession. And there's nothing quite like a recession to ruin oil prices. Unfortunately when oil prices spiked in the 1970s, central banks of the world decided to monetize this drag on the economy, and ended up with massive and predictable inflation. Restricting money growth, thus raising its cost, led to the long overdue recession and oil prices collapsed. Policy does not allow a choice between depression and no depression, but between depression now and a worse depression later. -- Joseph Schumpeter .