THE GAME IS OVER. THERE WON’T BE A REBOUND
How does one explain the current soaring price of oil? Isn’t the US Federal Reserve just about out of firepower when it comes to bailing out the struggling banking system? What advice can be given to Barak Obama to restore America’s economic vitality and put the country on the right path again? Commentator Mike Whitney checks the weakening pulse of the US economy with former Wall Street economist Michael Hudson, who was Dennis Kucinich’s Chief Economic Advisor in the recent Democratic primary presidential campaign.
“The U.S. press prefers to blame Chinese, Indian and other foreign growth in demand for oil and raw materials. This demand has contributed to the price rise, no doubt about it. But the U.S. oil majors are receiving a windfall “economic rent” on the price run-up, and are not at all unhappy to see it continue. By not building more refining and shipping capacity, they have created bottlenecks so that even if foreign countries did supply more crude oil, it would not be reflected in refined gasoline, kerosene or other downstream product prices.”
Click here for the full article.
Feel free to add your comments.