Oil and Inflation will be over-used terms in the future.  What people forget, is that between the years of 1961-1970 the price of a barrel of oil was $1.61.  Now, that's a nine year contract the USA paid for oil.  Today, oil goes up or down that much in a day.  It goes to show that there is some relationship between the cost of oil and the cost of housing, autos and gasoline.  In the sixties you could purchase gas for dimes a gallon.  Again, today, gasoline goes up sometimes a dime or more.

Debating whether or not Oil is inflationary, is not the question.  The price of oil and the future scarcity of it, is unmistakenly inflationary.  Now if one wants to add the US FED printing presses or whatever, you have a double or triple whammy.  

Because the Government is no longer producing M3 money figures for the public, one can easily track inflation by the price of Gold.  As Gold inches over $600 an ounce and on its way to $1,000, you can deduce, there is alot of inflation going on.  If anyone still has money or investments in paper assets, unless they are good mining companies or oil service stocks.....you would be wise dumping everything in Gold and Silver bullion.

Unfortunately, the coming Inflationary Sprial and resultant Depression will be like no other felt in history.  If you can find an old-timer who lived during the depression of the thirties, they will tell you how rough it was.  Today, we do not have the billions and billons of untapped barrels of oil, millions of tons of metals and minerals that have been consumed in our Wonderful World of Suburbia.  What we have is many more millions of people living in places that will not be able to sustain them.  There will be an all out race out of the Suburbs.

Those who lived in the depression days of the thirties, were considered lucky.  They were lucky because they had decades of Dam Building, Highway building, Residential, and Commercial building, Manufacturing and etc.  Today, our future will be nothing more than a glorified "ROAD WARRIOR" type of existance.  Get ready, because playing video games and driving out to eat and to a movie will be things our children will be told around the woodburning stove fire.