Sean's Blog

A Guide To Online
Opinion And Current Events

Thursday, August 19, 2004

Oh, good grief.

Um, these people haven't heard of urinals?

Hugo Chavez has survived a recall attempt in Venezuela. This is a few days late, but I wanted to make a prediction.

I predict we will see Venezuela continue a slow decline economically as Chavez's leftwing economic policies kill small business in that country. Watch Venezuela over the next few years. Chavez wants to create a Castro style economy.

If you want to see what leftwing policies will do, watch Venezuela.

Frederick Leuffer has a very interesting article at National Review about world oil prices and supply:
In the past, inventory levels of 295 million barrels — the current level — have dictated an oil price in the range of $24 to $28 a barrel. The difference between this price range and the current price represents a fear premium that supply with be insufficient to meet demand.
Okay, that says to me that the oil market is in the midst of a giant bubble and eventually it's going to pop.

This bubble will only be aggravated by consumers who are using less oil because the price is so high. Eventually, as the world stabilizes, we should see a precipitous drop in the price of gasoline. These high prices, since they have no economic fundamentals driving them, aren't going to last. The only thing keeping prices high seems to be fear of the unknown.