Tax revenues in the US are collapsing...

Source: http://online.barrons.com/article/SB124579469824143923.html#mod=BOL_hpp_dc

Even in this distressed economy, Crude Oil is still climbing, and has crossed $72 per barrel. Peal Oil is real... If the economy recovers, Oil would be way above $200 per barrel...

 

Obviously with less income comes less income tax. A bad economy brings in less money for corporations, thus bringing in less corporate taxes.

 

Ummmm isn't such news common for almost every country in the world these days?

 

That's what I was thinking. I also don't see the logic behind oil being above $200 per barrel if the economy recovers, because then it probably won't recover.

 

Good point Cos

 

Exactly. When everyone is feeling the hit of a recession, jobs go. With out jobs there is no income revenue (or with less jobs, less revenue). But, I guess the obvious escaped the OP.

 

My main observation was, that even in this weak global economic climate, oil is still above $70 per barrel. What happens when things go back to normal? Oil would touch $200 per barrel, and would push the world back into a recession. Its going to be a see-saw ride as far as I can see...

 

Unless the government stops spending money on stupid crap and helps fun research for alternate energy sources.

 

Tax revenues always falls in a recession (less economic activity)

 

Oil is gonna skyrocket in the next few years in terms of American dollars because the American dollar is quickly becoming worthless with all the deficit spending and printing we've been doing.

 

An interesting fact about tax revenues collapsing. There were approx 185k jobs that are based on statistics and seasonal adjustmments. I suspect that the true unemployment is actually higher than is actually reported.

The demand for oil is being driven by India and China. China is also storing oil as a hedge against inflation.

Wholesale prices increased 1.8% in June and inflation was 0.5% core. So even with a weak US economy inflation is rather high.

 

It's all a big players market and has little to do with economics per se. Its speculation and price wars....

 

Speculation is a very important part of the FREE Market system. It has its rightful place. People speculate coz of valid reasons. The main reason being that there is not enough oil being produced for life to go on as "normal". In the next few years, we will witness a total collapse of many industries dependent on cheap oil. Coz the oil ain't gonna be cheap no more. (PDF)

Please read about it... --> http://www.theoildrum.com

 

Thanks for the link, will check it out!

 

Oil could hit $600 a barrel in the next five years.