More denial of energy shortages from John Whitehead

He shows this chart to explain why energy shortages did not cause the recession. never mind the peak $130/barrel just before the crash.

His claim is that consumers only lost $150/month on the average, and were not bothered. But one producer delivers products to 10 consumers, the ten consumers have $1500 less per month, the producer energy costs drive down his margin, he exits the business. Again, look at the key indicator CPI/PPI and watch which one turns first, PPI, producers dropped out, not consumers. This was a supply side recession caused by energy shortages.

Santorum is correct about this. Housing followed inflation, inflation followed the energy shortages, producers collapsed, Lehman failed and we are still stuck with energy shortages.