When the oil shock arrives in the next 24 months or so, look for these excuses as to what is happening:
- weak dollar – a weak dollar causes the price of oil to rise and that will be the cause….
- speculators – those damn speculators are driving up the price again….
- environmentalists – those damn environmentalists wont let us drill, baby….
- geo-politics – those nasty countries hate freedom….
- Democrats – everyone knows that liberals want us to fail….
- weak US – if we were stronger militarily those nasty countries would be too afraid to hold our oil….
We’ll hear everything but the real reason I bet. The real reason is that we live on a finite planet and we’ve hit the limits to our ability to get oil out of the ground to match our thirst for it. The shock will leave us stunned, hoping that it’s temporary. I think that the price effects will be temporary, but the devastating economic effects will linger for years….If we could begin planning today, we here in Lex could avoid a lot of that, but I don’t hold out much hope.