The economy is factoring out partitions which cannot sustain at $100 plus oil prices. Tourism, travel, and soon auto sales all will downgrade their economic activity. The result is a reduction in commodity demand, and the remaining production regains profitability.
If we look at the gains, CPI/PPI, we see a sharp reversal of that ratio at the onset of the crash, business looks profitable again for production that survived he shake out. These are recessions caused by a shortage of an essential good. We are eliminating businesses that cannot use energy efficiently.
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