junior's toks

Oil Price Hitting $58

KLSE went down 8 points yesterday because oil price hit new high at US$ 58 per barrel ...

I went to Shell last Sunday, they charged me S$1.68 per ltr........ I remember I used to pay RM 1.10 per ltr in Malaysia.

So, I pumped $4.50 into my car......that is 3 ltr....:D

How scary is this oil price hike? I don't know about you. But I am very scared. I am even thinking of selling all my shares and keeping only cash or gold.

In 1973, when we had the first oil price crisis, the world went into serious recession. I am not that old to live through that but i know it was a prolong recession. Eventhough the world is less relying on oil these days, but countries such as India and China still do, and they are the engine for growht now.

EVERYTIME THERE IS A OIL PRICE HIKE, RECESSION FOLLOWS.

Inflation is creeping up in US. But that is due to oil price but not domestic demand for goods. Alan Greenspan can do very little about it. I doubt he can do much by simply raising the interest rate. We are witnessing a transfer of wealth from oil importing country to oil exporting country.

I dun know what has gone wrong in our world, just when things were getting ok, we had this Sept 11 incident. Then when the world was ready to pick up again, we had the Iraq war and SARS in 2003. In 2004, we had this strange bird flu. Now, we have this oil price crisis.



I hope I am wrong.

Junior

posted by Junior @ 3:17 PM