Interesting to see how that chart looks in a few years time,...

Interesting to see how that chart looks in a few years time, SaturnV. I haven't seen any inflationist stick their neck out and predict when oil will break to new highs. Do you have an opinion?

Shedlock has said peak oil, if it exists, has nothing to do with the credit collapse/money printing. So that supports prices, rather like CPI in Japan's deflation which has spent little time below zero.

The over-riding force, however, is a change of consumer attitudes to take on more debt brought on by two structural shifts: very high US unemployment and a retiring baby boomer generation this decade. In the 1970s we had women entering the workforce and in the 1980/90s declining interest rates to drive prices higher.

Bernanke is doing everything in his power to trash the USD and keep the game going, but it's not working. That's sooo last century's story... just look at the Yen's strength despite its huge government debt.

Rowingboat