Quote:
Originally Posted by Wayne at Pelican Parts
Yup, you heard it here. In my thread from two years ago, I predicted that oil would return from $100+ a barrel to a more reasonable $35-$45 a barrel. The fundamentals didn't support such a huge run up in prices:
http://forums.pelicanparts.com/showthread.php?t=286800&highlight=barrel
...
So, if this all happens, what we'll see is inflation (from the government printing more money), higher interest rates (to protect against inflation), and a weaker dollar (because it's being inflated rapidly). -Wayne |
Good analyses. One issue. In your scenario, higher interest rates are neccessary to "attract" foreign investment to hold your dept when China bails - they will also reduce demand for product and may have the effect of reducing prices/ controlling inflation.