Read an interesting article in the WSJ attributing a number of factors leading to the end of “Dollar Dominance” in the international monetary/trade system.
We will see a general increase in consumer prices in upcoming months due to recent oil price increases. This won’t necessarily be due to inflationary pressures as much as it will be a response to emotional reaction to the chaos in the Middle East. Most importantly, increase in oil prices is a result of increase in demand – basic supply/demand economics. As the markets grow in India and China the demand for oil and fossile fuels will continue to increase. There’s a great article on how Obama is goofing up our energy future with his insane policies, but this is a different story. Banning attempts to further unleash our domestic petroleum reserves continues to put us at the mercies of Middle East tyrants and unstable regimes. Thank you Mr. Obama for making life costlier and costlier for the average American and the world more and more unstable.
Considered buying a 500 gallon drum of unleaded gasoline to put in my garage, but figured that might cause drama with the landlord or the city if the house ever went up in flames. Kind of hard to hedge against projected gas price increases.