Monday, February 14, 2011

Greedy Fear Mongers

A wee bit of speculatory avarice may be showing among those forecasting oil to rise to as much as $300 per barrel. Certainly as the value of the US dollar slips, oil prices will surge, but this is to an extent self-correcting as leisure driving will diminish or even cease and drivers will use means of mass transit (bus, train, subway) or even rely more on bicycle or good old foot power as prices at the pump soar. As demand diminishes the invisible hand will gradually bring the cost down to levels that are manageable. I doubt oil will reach anywhere near the three hundred dollar a barrel mark in my lifetime, but so long as there are those with a vested interest in promoting the notion, a few will surely enrich themselves by perpetuating the scare.

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