naked capitalism

This post is by Jim Fitch of Some Assembly Required.

Cheer up, this may be the last crisis of the oil age.

Does This Dress Make Me Look Fat? The Fed needs to raise rates to combat inflation… while lowering rates to encourage economic growth. Congress needs to exercise fiscal responsibility… while bolstering the economy. Peak Oil means we must conserve energy and expoloit alternatives… while drilling for more crude. Why does anyone want to be president?

On the Trail: Obamma seems to have no idea, or far too many ideas, as to what the US response should be to the Russia/Georgia contest. McCain has but one answer, aggression everywhere. Both are wrong. The problem is that the US has no credible way to threaten Russia or support Georgia without making matters much, much worse.

Dominoes: Ever cheerful Nouriel Roubini sees a serous and protracted global recession, enveloping not just the US and the G7, but the entire Eurozone, the BRIC’s and everyone else.

Au Contraire: The markets seem to think the drop in crude oil prices is proof that there is lots of supply and that the peak oilers have been disproven. Not so, wild gyrations in price at the time of peak oil has been expected and predicted. The trouble is that whether this price gyration is a proof or disproof of peak oil will not be known until we can see today clearly in the rear view mirror.

Sad Fact: A toxic combination of $4 gasoline, voter anxiety and presidential ambition is making it impossible for this country to have the grown-up conversation it needs about energy.

Something to Chew On: Pilgrim’s Pride, the largest chicken producer in the US is losing money on every chicken it processes and will stop production at two plants, cutting employees by 2,300 while cutting production 11.5% this year.

Takes One To Know: Nobu Su, who owns 20 Very Large Crude Carriers, predicts that rental rates for oil tankers will triple by the first quarter of 2009, driven by a renewed jump in energy prices on increased demand and political instability.

Some Assembly Required reflects my somewhat cynical view of the world on a daily basis. Think of it as having coffee with a curmudgeon. I want to thank Yves for the opportunity to come over and play. I’m going home now. Come visit; bring your own coffee.