When signing for me a copy of his new book, “The Return of Depression Economics and the Crisis of 2008,” at Washington, D.C.’s National Press Club last week, Nobel Prize winning economist Paul Krugman scribbled, “To Nicholas, Don’t be depressed.”
If you don’t understand what is going on with the price of gasoline and demand for the world’s oil supply, then join the club.
There is a growing consensus among those who follow such things, that the new high of world oil production (87.9 million barrels a day) reached last July is likely to go down in history as the all-time peak.
The way things are shaping up, in less than three months you will be in charge of solving the direst set of crises since the ones faced by Lincoln back in 1861.
Thus far, last week’s OPEC production cut of 1.5 million barrels a day (b/d) has done little to stem the slide in oil prices.
While waiting to find out how many million barrels of daily oil production OPEC says it will cut, it’s a good time to review the financial-energy situation as the two are now inextricably linked.
For weeks now the stock markets and commodity prices have been falling. Oil is currently trading around $76 a barrel which is close to a 50 percent drop since the middle of July.
Earlier this week The Washington Post’s media critic, Howard Kurtz, published an apology on behalf of the media for its weak coverage of the multi-year run-up to the current financial debacle.
We are witnessing one of the most eventful weeks in modern history. Stocks and oil prices plunged on Monday and bounced on Tuesday; credit markets seem to be freezing; the Congress remains in gridlock as members watch the approaching elections fearful of what could happen to their incumbency.
Drill baby drill has become a common catcall at political events this election season.