Survive and thrive during the coming economic crisis

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[Update 6-22-08]

Peak Oil Energy Crisis

As I write this the price of a barrel of oil is kissing the $142 level and gas at the pump is surging toward the $4.25 level. Worse yet the talking heads on TV are all predicting even higher prices.

The real problem here is that U.S. corporations are temporarily holding the line on prices and absorbing the increased costs internally. But that won't last.

Soon, very soon you will see the price of virtually everything you buy increase to uncomfortable new highly-inflationary levels. That's because everything you buy has to be shipped by trucks, planes and trains that all consume oil. Smaller lighter items will increase in price the least while larger heavier products will see their prices skyrocket.

Our real inflation rate is now somewhere around 7.5% but is bound to soar into double digit rates when the new higher oil price is passed along to consumers.

But not is all bad news. While oil prices seem set to increase through this coming summer, with the U.S. economy in decline these prices levels won't last.

I expect the price of oil to tumble starting around the end of summer. By then the U.S. economy will be in a tailspin and demand for oil products will wane.

And then you have the political aspects of the price of oil. Communist Venezuelan leader Hugo Chavez, Bolivian leader Evo Morales and Russian leader Vladamir Putin are all playing the same "peak oil" game.

Instead of building the industrial base that would allow their nations to compete internationally, they've built their power bases around their sudden oil riches. If the price of oil drops, these three could be swept from power in a matter of months and believe me - this fact is central to Washington's future plans.

Another factor - the coming election. Karl Rove knows how sensitive the issue of gasoline prices are to the electorate. He knows that if the price of gas is still high on election day, the election will become a republican bloodbath. 

So look for the price of oil to tumble to around $70 to $80 bucks per barrel by the end of September. Gasoline prices should fall back to under two bucks a gallon. But don't run out and buy a big gas-hog V8 just yet, the price will soon surge to new record levels once the election has passed.

For more details on the coming economic depression, our report gives you everything you need to take full advantage of the hard times just ahead!

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