http://bobchapman.blogspot.com/2011/03/bob-chapman-america-wants-libyas-oil.htmlBob Chapman : America wants Libyas OilBob Chapman - a Marine Disquisition - 03/10/2011 libya's Oil is excellent very low in sulfur , and America wants itBob Chapman wrote in the international forecaster of the 9th March 2011 :"...All in all the average American would see petroleum based costs increase $2,500 a year, which would reek havoc on consumption and GDP growth. This kind of factor is what deflationary depressions are made of. $300 oil would increase the balance of payments deficit by $800 billion annually and erase 4% of GDP. Inflation would rage, especially when assisted by higher food prices. Wall Street doesn’t as yet understand this, but when it does the stock market will certainly fall. If you pencil in the increase in monetary aggregates by the Fed and the rising fiscal deficit you end up with hyperinflation and stagnation simultaneously. We could be looking at budget deficits of $2.5 trillion annually and a balance of payments deficit of $800 billion. This means 14% inflation this year and perhaps 30% in 2012. These events would produce a dollar collapse. It would also collapse the economies, China and India, their currencies, and many others as well in non-oil producing countries....."
Bob Chapman : America wants Libyas Oil
http://bobchapman.blogspot.com/2011/03/bob-chapman-america-wants-libyas-oil.htmlBob Chapman : America wants Libyas OilBob Chapman - a Marine Disquisition - 03/10/2011 libya's Oil is excellent very low in sulfur , and America wants itBob Chapman wrote in the international forecaster of the 9th March 2011 :"...All in all the average American would see petroleum based costs increase $2,500 a year, which would reek havoc on consumption and GDP growth. This kind of factor is what deflationary depressions are made of. $300 oil would increase the balance of payments deficit by $800 billion annually and erase 4% of GDP. Inflation would rage, especially when assisted by higher food prices. Wall Street doesn’t as yet understand this, but when it does the stock market will certainly fall. If you pencil in the increase in monetary aggregates by the Fed and the rising fiscal deficit you end up with hyperinflation and stagnation simultaneously. We could be looking at budget deficits of $2.5 trillion annually and a balance of payments deficit of $800 billion. This means 14% inflation this year and perhaps 30% in 2012. These events would produce a dollar collapse. It would also collapse the economies, China and India, their currencies, and many others as well in non-oil producing countries....."