Even though it seems we’ve seen the end of $4 gas, the economy is not quite out of the woods. Demand destruction and a severely constricting economy have driven down the price of oil and its distillates. But the resulting economic bounce has resembled a dead cat tossed off a skyscraper.
For those of you not paying attention to the news last week, here’s a quick summary: The United States economy nearly collapsed, taking the world economy with it. Only a quick infusion of cash by the Treasury Department prevented full-scale collapse. The problem: peak oil. The solution, such as it is: print money, sensu Weimer Republic. Ben “Helicopter” Bernanke is living up to his nickname, and he’s getting a loan from Henry Paulson.