To: carranza2 who wrote (132679 ) 8/15/2005 5:01:42 PM From: MulhollandDrive Read Replies (1) | Respond to thanks... don’t know where oil prices are going. But I do feel strongly that an important macro threshold has now been breached -- one that adds unmistakable tension to the world economy’s greatest imbalances. At the current level of oil prices, I suspect one of two things will happen -- either the over-extended American consumer will finally cave or the long-awaited US current account adjustment will finally unfold. Courtesy of a full-blown energy shock, the venting of global imbalances can no longer be deferred indefinitely. If consumers remain unflinching in the face of sky-high oil prices, a plunging saving rate will push an already outsize current account deficit to the flash point.
