Wednesday, January 2, 2008

Oil tops $100 a barrel

There is no good or easy way to spin this: http://www.cbc.ca/news/?ref=alerts. The most obvious effect will be higher gasoline prices, but the impact will be felt everywhere, ranging from food prices to how much you pay for that new computer. Everything either has oil-based products in it, requires oil to transport it, or both. As well, it will exert further downward pressure on the already beleaguered U.S. Dollar, which will have a domino effect on an economy which is being battered as well by the neverending credit crisis. Can you say "Recession"? I sure can. Can you say "Depression"? If not, you might want to think about learning how.

As well, now that this psychological barrier has been broken, look for prices to continue up to and beyond the $150 a barrel mark, as we continue to enrich the countries who hate us (any Arab state, Russia, Venezuela, etc.).

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