house of cards

The Goldman-Sachs story, with a mainstream investment predicting oil spiking in price up to $105, is a few days old now. The stock market jittered up when the prediction was made.

This ultimately raises the spectre of depression due to spiking oil prices.

Seperate from oil, the fundamentals of the American economy, and by implication the world economy where significant portions are denominated in dollars, are terrible.

Chalmers Johnson writes a good piece on the situation, up to date and fact heavy.

The economy is a faith based initiative right now. Oil has a good shot at making everyone lose faith, even if this isn't the year of the actual peak.