The world’s first peak-oil recession has come to a close, according to third-quarter numbers invented by the federal government. Apparently flooding big banks, insurance companies, and automobile manufacturers with fiat currency interrupted the plummeting descent of American Empire. The stock markets skyrocketed expectedly. Predictably, so did the commodities markets.
While we were away, the financial sector continued its downward spiral and the price of oil continued to climb, albeit with considerable volatility. During the next few months, I expect to see the stock markets continue their unwinding while supply disruptions in gasoline spread throughout the country (from the six states impacted last summer). By year’s end, the Northeast’s fragile electrical grid is likely to collapse. The price of heating oil already exceeds the price of electricity, and is likely to increase between now and November. The overwrought electrical grid will collapse when a small proportion of the sixty percent of homes heated with heating oil switch to space heaters.