iran fires missiles

Today, iran fired some long range missiles in a show of defiance. They are threatening israel again. The situation is getting hot. I predict that a war in middle east involving iran will affect the price of oil. In fact, future price of oil will go up a lot.

Hyperinflation in our future?

Hyperinflation in Zimbabwe is so high that with 500 billion Zimbabwe dollars you can buy three eggs. That is because their government printed too much money. In the US a similar problem is happening. The euro used to have less value than the dollar, but from 2001 to 2008 the dollar lost 60% of its value against the euro. This is because we print too much money.

Our current severe recession helps mask the effect, but soon prices will rise and people will get crushed. Remember that real estate went down, stocks went down, soon due if hyperinflation the dollar will go down. The future price of eggs is a lot more than now.

Oil heading higher

As predicted the price of oil is going up. Gasoline is going up even faster. Last month regular at the pump was as low as $1.87/gallon and now it stands at $2.39/gallon and rising. I predict that it will soon pass the magical three dollar mark.

This will reduce profits for companies and slow down the economy. We will see a return to higher inflation triggered by high oil prices. Analysts say that the current prices of of at $58/b is high and that it will hold under sixty.

Don't believe it. The current crisis in Nigeria, the sixth largest petroleum producer in the world is fueling this price increase. Expect prices to continue upward.