$120 Oil Flagged as Danger Point for Global Economy on Iraq Crisis

$120 Oil Flagged as Danger Point for Global Economy on Iraq Crisis

(from bloomberg.com)

“The rule of thumb favored by many economists is that every $10 increase in the price of a barrel of oil ends up cutting global growth by about 0.2 percentage point … What’s more, a strong and sustained recovery seems unlikely as long as oil is above $100”

Other sources mention a possible 140$, with minimal relation with iraq, but concurent decreasing output, OTOH the impending bancruptcy of europe may open a market, T. Bone Pickens wind mills may come online, as long as we are ready for more telecommuting and gas at 6$ a gallon, even if with a drop of the DOW, main street economy is restarting and is now more poor but much more energy efficiency aware, a lot of the banking system bulls won’t work this time, is possible some of the too big to fail may become too big to rescue and end up like lehman.

OTOH, again, the awareness of the obsolescence of the usury-monetary system and the financial frauds industry, with the systemic drop of reputation of the quackery of the economics religion, and a very steep progress into automation, mechatronics, robotics, energy efficiency, and living patterns more sustainable, make us (in the US,) much better equipped to deal with the demise of the economical quackery, christian quackery, and political quackery system of parassites, that would/could implode any day now, especially with oil at 140$.

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