nakedempire


The American Empire in a Changing World



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Monday, April 2, 2012

''Crude Oil Prices: Now for Something Really Scary''

From Market Oracle


"If oil prices don’t crash down to $67 within the next two months, that means for sure the evil one-eyed-drooling-spirit of Peak Oil, which everyone has been studiously trying to ignore for so long, has finally arrived."


"This is the rub, when the amount of money coming in from selling the birthright of America to foreigners, so that everyone in America can drive SUV’s and the politicians can boast about how they are committed to keeping gas prices less than $4 a gallon, which makes it cheaper than gasoline in Saudi Arabia, and is an explicit subsidy…when the amount of money America can borrow to pay for that luxury…is not enough to pay for it (that’s when the orange line in the following chart goes below zero)…there is trouble in store."


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