Monday, April 17, 2006

Oil Crisis Emerging

The mainstream media appear to be deliberately downplaying the acute skyrocketing of oil prices which threaten significant harm to the economy overall and certainly much pain to consumers both at the gas pump and in other cost of living impacts.

Crude oil for June delivery is now trading at $71.90 per barrel.

The Himalayan Times says:

"As one risk factor for the global economy is crude prices, which remain at high levels, I will closely watch how each G7 country discusses the issue," Japanese finance minister Sadakazu Tanigaki said...

In London, Brent crude futures have broken through $70 dollars a barrel for the first time, owing to tight supplies and to tensions over Iran's nuclear ambitions...

The higher the deficit goes, the greater the risk of the dollar crashing, "which would push US interest rates up sharply and possibly lead to a recession”," ...[the IMF] warned.

It is very possible that oil prices have entered territory which is economically destructive, and they will not ease much without a recession or depression which could cause demand to plummet. Barring capitalists having some clever or lucky cards up their sleeves, we may be just now entering a strange new era with much pain and some glimmers of hope for a future which is based on cooperation and sharing rather than competition and private ownership.

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