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News Link • Oil

If You Think The Price Of Oil Is Skyrocketing Now, Just Wait Until The War Starts…

• https://russia-insider.com, by Michael Snyder

The Wall Street Journal is calling this attack "the Big One", and President Trump appears to be indicating that some sort of military retaliation is coming.  Needless to say, a direct military strike on Iran could spark a major war in the Middle East, and that would be absolutely devastating for the entire global economy.  Just about everything that we buy has to be moved, and moving stuff takes energy.  When the price of oil gets really high, that tends to create inflation because the price of oil is a factor in virtually everything that we buy.  In addition, a really high price for oil also tends to slow down economic activity, and this is something that we witnessed just prior to the financial crisis of 2008.  And if this crisis in the Middle East stretches over an extended period of time, it could ultimately result in a phenomenon known as "stagflation" where we have rapidly rising prices and weaker economic activity simultaneously.

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