The Big Secret About Oil

Each day we continue to feel the damaging effects of high oil prices. And while oil has recently corrected down by close to 30% from record highs, it is still very high and is likely to make new records within the next 2 years. Yet, Washington refuses to respond appropriately, and has even denied that inflation has become a problem.

As I have discussed in previous articles, Washington has many ways to hide inflation, GDP and employment data. But consumers are starting to realize something is fishy.

Apparently, the presidential candidates still think voters are brainless, as they continue their charade of deceit and distractions by proposing useless solutions like gas tax holidays, off-shore drilling, and windfall profits taxes for oil companies – none of which will solve America’s dependence on fossil fuels.

In the future, I will address the pitfalls of Mr. Pickens’ proposed wind energy solution. Maybe voters are brainless because they seem to swallow everything they are fed by Washington and the media machine.

Fortunately, oil prices are correcting. But remember the effects of high oil prices are delayed in the economy by up to one year. In addition, the longer-term effects may be delayed by up to two years since inflation is a lagging indicator.