Marc Faber: Oil Prices And Monetary Policy.

"Before the rate cuts in September 2007, the oil price was at 75 dollars. As you know in the second half of 2007 and early 2008 the global demand for industrial commodities including oil was diminishing already. But the oil price still went up from 77 dollars to 147 dollars. The result of this increase in oil prices was that the total outlays for oil in the US, went from 500 billion annually to an annual rate of over 1 trillion dollars. The consumer was faced essentially with an additional tax of 500 billion USD and that probably pushed consumers over the edge in terms of consumption."

at 2/28/2010 Labels: ,

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

DISCLAIMER

The above is strictly for information purposes only and should not be considered an offer, or solicitation, to deal in any of the mentioned financial instruments. Statements made by various authors and other contributors do not necessarily reflect the opinions of this website, and should not be construed as an endorsement by this website, either expressed or implied. This website does not warrant the accuracy, adequacy or completeness of the information herein and expressly disclaims liability for any errors or omissions. The information is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. Therefore, all information and materials are provided "AS IS" without any warranty of any kind.

THIS PUBLICATION IS NOT INTENDED TO PROVIDE ANY INDIVIDUAL INVESTMENT, FINANCIAL, LEGAL, REGULATORY, ACCOUNTING OR TAX ADVICE AND NOTHING HEREIN SHOULD BE CONSTRUED AS A RECOMMENDATION, BY THIS WEBSITE, ITS AFFILIATES OR ANY THIRD PARTY, TO ACQUIRE OR DISPOSE OF ANY INVESTMENT OR SECURITY, OR TO ENGAGE IN ANY INVESTMENT STRATEGY OR TRANSACTION. YOU SHOULD CONSULT YOUR OWN INVESTMENT, LEGAL AND/OR TAX PROFESSIONALS REGARDING YOUR SPECIFIC SITUATION.