The Oil Drum

You have to think about cause and effect. The massive infusion of debt ala M3 and the fact that Opec is dollar pegged has worked to keep oil prices relatively low. But with the latest shenanigans the US has signaled that its willing to trash the dollar. So expect OPEC to unpeg and expect oil in dollar terms to skyrocket as OPEC effectively fights to retain the real value of its currency holdings. Its very much a petrodollar game. This says to me that the US is confident that OPEC cannot significantly increase production so we are in end game mode now.

At a personal level you should have plans in place to react quickly to events starting next summer. WT ELP recommendation is important.

One thing you may want to consider is a safe hideout if you live in a large city like Los Angeles.
This means not going on vacation and saving your vacation days working with your employer to work remotely etc.
You need to be able to leave the city quickly if rioting
breaks out.

With the way things are going the combination of financial games and peak oil could easily lead to rioting in many of our larger cities this summer. I expected some shortages and limited disturbances but now I think things have a good chance to fall apart as the costs of food and gasoline skyrockets and the economy slumps into the first stages of a deep recession.

This means of course that the stage is set for Bush to impose martial law and postpone the national elections if he wishes.