The funniest part of that video was when he said Australians are hard working people lol.. If I recall correctly their retail shops close quite early in Australia.. Here in Asia the Asians are probably the hardest working people I have seen yet which is why their economies are pretty sound compared to those in Europe or the US.

Just like housing prices would never fall and cause the current financial mess, oil production will never begin to decline and cause the price of energy to explode. Well, what do you know, real estate prices fell and all the losses got transferred from the super-rich debt holders to the taxpayers by the bailouts of AIG and all the rest. A few trillion here, a few trillion there.
You need fuel to do almost anything. Does anyone remember the fun times during the Arab oil embargo? That was nothing compared to what is coming within 5 to 10 years. What do you think will happen to the economy when people have to pay $15 for a gallon of rationed gas. Might consumption of everything else collapse? How many more million jobs will vanish as people spend more and more of their income on gasoline? You think Uncle Sam will cut you ‘cash for gas’ checks every month? You think oil exporting countries will ship their remaining oil in exchange for dollars that are worth less and less every day. Faber knows that inflation is the only way the government debt can be managed, but such an inflation will make the price of oil go thru the roof. It will set off a vicious circle. As the amount of oil available decreases, the price will rise. More and more money will be needed to pay for less and less of it. The creation of so much money will cause it to be worth less and less, so you need to create more and more of it. Soon, you are sending so much money out of the country that it becomes worthless and the economy will collapse. If oil were still abundant and cheap, as in previous recessions, we might be able to inflate away the debt in a controlled manner. The economy might have time to adjust. But when you throw in the exploding cost of oil, financial, and then economic, collapse becomes unavoidable. It really is different this time. The only question now is, how long until the collapse begins. The greedy idiots in Washington waited too long to do something. That is why people establish governments, to do what the individual cannot. They have failed us, while enriching themselves and their wealthy Wall Street puppetmasters. If you aren’t rich and want to travel, I would do it within the next 5 years. After that, we will all be living on borrowed time. Once the refineries start to shut down for good, critical things won’t get done and you will soon become more concerned about survival than enjoyment.
Ed Note: and people ask why I stay living in Dubai!

I read a lot about the price of oil exploding in the long term. I disagree. In the short-term it will likely collapse further, below $45 if the dollar gets stronger–it’s at $69 today. In the mid-term I can see it continuing to rise towards $100 since the incentive to invest in drilling will be reduced at a lower price. In the long term however I think people lack imagination for the impact of improvements in technology. 10 years ago did anyone envision an iPhone–you carry email, make calls, send text messages, read books, watch movies, play video games on a phone? Seemed unlikely. Cars average 20 MPG today, if you count all the “clunkers” not destroyed in that lunatic giveaway. In 10 years cars will average well over 100 MPG–our newest car gets 47 with fairly primitive (new) technology. While I don’t see the price of oil decreasing to $20, I cannot see it ever going much over $100. In 25 years it is also easy to see the majority of cars running on a combination of gasoline, electricity, hydrogen, LNG, and batteries. If we had let GM and Chrysler just disappear it is likely we would have gotten to an avg of 100 MPG a lot sooner too.
Ed Note: Very perceptive, I agree – especially on the short term weakness point.