Friday, February 6, 2009

Ordinarily I'd take this as good news...

Oil falls below $41 as recession batters US

Cheaper oil? Sure, why not?

BUT: will this ultimately lead us to forget that our current "energy policy" is non-existent? - and to convince the Big 3 to crank out more & bigger SUVs?

Will our Saudi & Iraqi allies find themselves short of cash?
How 'bout our Venezualan & Iranian foes? - will cash-strapped foes be more or less belligerent? Stable??

Note: we're still not back to pre-Iraq fiasco price - less than $35/bbl (adjusted for inflation).
W: the gift that keeps on giving.

1 comment:

  1. Krugman has a good article today in the NYT about the problems of deflation. When you've lost your job and there's no money coming in if gas costs only a quarter a gallon it's more than you can afford.

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