Downward

Energy and food prices are soaring. The housing market continues to collapse. Government revenue is falling, and taxes are rising. Airlines are jacking up fares and fees while reducing service. Banks are pulling credit lines. Auto companies are cutting production once again. Even investment bankers are losing their jobs.

By 2008 the mainstream press has caught on to the unfolding economic reality, that is, that the United States is in the early stages of a severe economic downturn. The debasement of the US dollar has continued consistently across the period of this blog. The monetisation of this period is well and truly flowing into massive inflation with commodities, oil and food all experiencing significant price increases. While the deception of "core inflation" becomes ever more disconnected from the inescapable reality of "real inflation".

With the possibility of peak oil soon migrating from a fringe concept to a mainstream mantra the way the world looks at its future may change in far more radical terms than global warming could ever do. The link above to the article from the Washington Post is a solid anchor point from which to anticipate the next five years.