August 04, 2008

Peak Oil (Prices)

I am amused that so many coffeehouse commisars have their panties in a bunch about the worst inflation in the history of the publication of the USA Today even as the obvious causes of these inflationary pressures are easing:

Oil prices plunged to a three-month low Monday, briefly tumbling below $120 a barrel in another huge sell-off after Tropical Storm Edouard seemed less likely to disrupt oil and natural gas output in the Gulf of Mexico.

Crude's steep drop -- prices fell more than $5 at one point during the day -- dragged down other commodities from corn to copper and mimicked the big nosedives of the past three weeks, adding to growing beliefs that the oil bubble is at least temporarily deflating.

I am further amused about the size of the fonts announcing $120 oil on the way up compared to the size of the fonts used to announce $120 oil on the way down. Perhaps bad news itself in an election season exerts its own inflationary pressures and demands a government program! Not to worry though, any repreive from the latest crisis is probably only temporary. Alas, our public servants will no doubt once again come up with the right solution for the wrong problem soon enough.

Posted by Charles Austin at August 4, 2008 10:02 PM