The OPEC Bailout Is Not Happening
The oil cartel is making it known that it is cool with $100 oil and will not act unless prices move significantly higher and stay there. Oil, like most commodities, has been rising steadily as governments around the world keep their printing presses running to dump new money into the global economy.
Oil producers have a real good to sell, one with intrinsic value. They do not want to be paid in devalued currencies. Neither do producers selling precious metals, fertilizer, farm products, etc., which is one reason why wholesale food prices are going zoom, zoom, zoom.
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Lessons from the Auto Show
Gasoline is going through the moonroof: Every car company is bracing for $4-per-gallon gasoline in the U.S. as the global economic recovery drives up demand; and every executive who would venture an opinion thought that price range would be the new normal. A key difference from price spikes of the past, however, is that automakers have more product in cadence with the energy market.
Limestone Commentary
Still very pleased with my Honda CR-Z (especially in light of escalating commodity prices). I drove my tiny car (newly named Meg(ara)) to work after a significant New England snowfall (after she was disentombed) and she handled beautifully.