The Oil Yoke

I've put forth the idea for a couple years that the American and the global economies have entered an era where oil has become a yoke on future growth. The American economy and the corporate globalization experiment of the last several decades are dependent not just on oil, but cheap oil. I have roughly calculated that the American economy, and thus corporate globalization cannot run well on $80 or above a barrel.

The FT has a good piece on how longer dated oil futures have risen to a hundred dollars. It also states the Henry Kissinger founded International Energy Agency, "the rich countries’ watchdog, has admitted for the first time that the spike in prices last year played a significant role in tipping the world economy into recession."

The oil yoke calls into question many of the planet's current economic paths. Most importantly, the simplistic stimulus notions of pumping up the oil dependent American economic status quo, though more importantly the path the Chinese have taken. I'm not sure the stimulus efforts of the Chinese, which have boosted auto sales to a million a month is much to celebrate.