Saturday, November 6, 2010

Choppy Oil

Notice oil was less choppy before the crash?  The economy looks at oil when oil is choppy, the price variations needed to keep flow smooth is large.  When the economy determines that oil prices are choppy, then you have already entered a Recalc, it will rearrange itself around constrained energy supply, specifically affecting transportation.  But because the constraint is noticeable, technology attacks it, and since 1840 technology has won. (WW2 was a close call)

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