Money flows from oil

A provoking post on Seeking Alpha this morning that prompted deep thinking on the money flows from the large changes in oil prices over the last 5 years.  The basic gist which totally makes sense is that the oil profits are not as important as the consumers’ total cost for oil.  The lower their costs, the more they spend elsewhere in the economy.  The inference then is that higher oil prices are totally deflationary – they reduce broader consumer purchasing … it doesn’t really matter if the oil profits end up in US, Canada, Russia or Arabian Peninsula.

It’s Oil Stupid

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