Some experts predict oil prices will breach $100 a barrel by year’s end and that gas at $5 a gallon will follow. Heating oil will jump as well—bad news for homeowners this winter.
This segment of What’s Ahead tackles the question: Will these horribles happen?
The current surge in oil prices is the result of strong, post-pandemic demand outstripping supply. Moreover, the Biden Administration is worsening things with its misbegotten war against fossil fuels.
But this shortage is temporary. Major oil producers like Saudi Arabia will be boosting output.
The real danger is if the rest of Biden’s binge-spending schemes pass—the Federal Reserve will be printing huge amounts of money to pay for them.
That will kindle a white-hot fire of inflation.
This is what the Fed did in the 1970s, when we saw oil rocket from $3 a barrel to $40. When inflation was conquered, the price of oil collapsed.
If our central bank behaves like that again, we’ll get oil at $100 a barrel—and a lot of other bad things as well.
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers,
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Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions as well as featuring Steve’s signature views on the intersection of society, economic and policy.
Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public television. The film was inspired by the book he co-authored, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It.
Steve’s latest book is Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming The Fed will Restore Hope and Prosperity co-authored by Elizabeth Ames (McGraw-Hill Professional).
Steve writes editorials for each issue of Forbes under the heading of “Fact and Comment.” A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by U.S. Steel Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate.
In both 1996 and 2000, Steve campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Steve continues to energetically promote this agenda.
