I started writing a post on the Pugh Report from the United Nations which simply said that we have about 3 billion people living in cities now, and that in something like 30 years that would double to 6 billion people. The simple statistic blew my mind when you consider that the infrastructure doesn't exist now to support the population levels in the cities now, much less the surrounding areas. We desperately need actual decentralization. This is a huge topic, as I find out.
You have seen the post on Stagflation, and how it is playing out in the economy. That took more than a few minutes. And some of those commodities seem to have peaked, such as gold, maybe.
Oil, on the other hand seems destined to go higher. Goldman Sachs wrote a report about a spike to $200 a barrel. Can you say $8 a gallon for gas? Is anyone else wistful for $2.50 a gallon gas? Please don't shoot the messenger. If this price level happened this year, Congress would act, and it would probably not be smart, but it would do something to mollify the taxpayer/voter. A substitute is really needed.
There is something else that I am also hinting at, so let me be more specific. We need more telecommuting. More working from home, or local offices at computer centers, and less commutes that take huge amounts of time and gasoline to move a person from home to their work place. We can do a lot of business without seeing each other face to face.
Next year, $6 gasoline. It's not the price level, it's the rate of change that kills you. That's what the experts say. What do you say?