"At first, because of the deflationary forces that this is unleashing, I don’t think that this is going to be so inflationary. The deflationary forces will be uppermost for the next two or three years as we carry the world through this inability of demand to approach supply. Because it’s demand that’s being stopped.
RB: Deflationary forces are coming from where?
CM: The deflationary force is because the asset base is being eroded. People’s [homes] are valued less, their stocks are valued less, and homes are falling in value, partly because there will be lots of competition. Partly because supply is going to continue to expand but demand is not. So there’s going to be a big cushion between supply and demand.
Whereas two years ago, that cushion was pretty well removed. My point is that eventually the inflationary potential of this is huge. The dollar should continue on a long-term downward course. So when you look out seven years to 2015, and you look at $300 oil, I would suggest it’s actually $250 oil in today’s dollars. This kind of economic management, we could have $210 oil. It’s not going to be nearly as much as $300 sounds.
http://www.energytribune.com/articles.cfm?aid=1035
Se även tidigare inlägg där Maxwell citeras:
http://intheendwerealldebt.blogspot.com/2008/11/elefanten-i-vardagsrummet.html
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