Stumbling Blocks to Figuring Out the Real Oil Limits Story
Chart; Gail Tverberg (click on for big)
Unfortunately, I cannot see that we have found a good oil substitute. Instead, quantitative easing is temporarily hiding financial problems of governments and individuals by forcing interest rates to be very low. This makes cars and homes more affordable, and keeps the amount of interest paid by the federal government very low. We know that these artificially low interest rates are temporary, though. Once they “go away,” tax rates will need to rise, and asset prices (stock prices, bond prices, and home prices) will drop. Oil prices may very well decline below the cost of production. (Gail Tverberg-Energy Collective)