When you hear things like this, you know the Military-Industrial Complex will once more press for its pound of flesh…
Sustained oil prices close to $80 a barrel could hit US economic growth, Energy Secretary Sam Bodman has said.
The US economy has never faced such high prices for “an extended period,” Mr Bodman warned.
There is concern about whether oil supplies can meet global demand and Mr Bodman urged oil producing nations to increase output to avoid shortages.
Oil prices have fallen back slightly after hitting a record intraday high of $78.77 a barrel on Wednesday.
Analysts say that a price rise above $80 is inevitable, raising concerns about the effect of energy costs on inflation.
Higher oil prices drive up the costs for businesses who pass those increases on to customers. And with the price of petrol at the pump close to $3 a gallon, it is feared that higher fuel bills will begin to dent consumer spending.
Mr Bodman said that the high oil prices had inflicted only a “modest” impact on the economy but he was unsure that this was sustainable.
“I am concerned that where we are operating, in the ranges that we’re talking about now,” Mr Bodman said.
“I am concerned for each uptick (in price).”
And he called on the oil producers cartel Opec to “look carefully at the facts”.
Aha. There’s that four-letter word again: OPEC. The devil Ronald Reagan thought he’d banished (illegally!) to Hades forever. Surpriiiiiiiiise! The very same demon was resurrected by none other than Chavecito.
You know what this means, don’t you?
It means that Chavecito had better pray the full shipment of Sukhois arrives early, and the planned Kalashnikov factory will have to be constructed post-haste. Bodman is hot for his bod, man!