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131 comments on Is There A Painless Way To Fill The Oil Supply Gap?

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Gail the Actuary on January 31, 2007 - 11:08am Permalink | Subthread | Parent | Comments top

I would feel a whole lot better about demand destruction if our economy were not debt based. I expect we will have massive defaults on debts with declining oil production. Either there will be some type of govenmental guarantee, and we will have massive inflation, or there will be no guarantee, and the debt-based system will collapse.

There is also the issue of debt going forward. What lender will be willing to provide a 20 or 30 year loan (for mortgages or for commercial purposes) once it is known that oil and natural gas are expected to decline year-after-year, in the future?

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Don Sailorman on January 31, 2007 - 2:46pm Permalink | Subthread | Parent | Comments top

Historically speaking, I think the odds favoring massive inflation are about nine to one.

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