Four projections for what’s going to happen in the markets

Plus, four reasons why this may be the worst crisis since the 1930s.

…3. Rising oil prices affect


According to the Peak Oil calculations, we have already used about half of the energy stored over the last 100 million years. Against that, we have a steady increase in demand emanating from population growth and economic development, especially in Asia. This, coupled with the dearth of major new discoveries, assures that energy markets will remain at high prices, for the foreseeable future. The current big drop from almost $150 to $110 has happened from a slowing economy and from some conservation at the extreme high gas pump prices, but the long-term view is that the lack of reasonable alternatives to petroleum argues for continued higher prices returning to the previous peak in the year ahead.

As energy is a component in the manufacture of all goods and services, this is of no small consequence. Energy has been the basis of the abundance of our current existence and has allowed human population to grow from1.5 billion to six billion over the last century.

Stockhouse