Loading ...I remember Oil went from $2/bbl in 1970 to $42/bbl spike around 1981. The high spike average for March ’81 was $35/bbl, 1981 Dollars. If you adjust for inflation in todays dollars, a lot of things are 20 times more. So to be kind if you figure 10 times more, $35 times 10 is $350/bbl as the next all time spike high. Gasoline I think went .25 cents to $1.30 in around 1980. $1.30 times 10 is $13/gallon gasoline for the new high.
The recent spike oil average for June 2008 $128/bbl, but $145 was a intraday high. So that was 14 years ago. No time now to figure the true inflation for 14 years (probably 7%/yr) so as a shear guess, the $145 doubled is $290/bbl if the next spike high is tomorrow. If it takes a few more years??? For the next all time high? $350/bbl or more?
Naturally if business activity around the world implodes like 1929, and we get a massive deflation, US Dollar GAINING value, maybe we see $2/bbl and .15 cent gasoline. And $5,000 to $10,000 houses again. And a .10 cent loaf of bread cup of coffee and a 2 cent stamp. Probably coincide with a new gold silver backed currency.
This entire system is so bastardized it has to be recycled, thrown out, and start over start a new game like 1934 gold confiscation and 1937’s now Minimum Wage and Maximum hours act.
Also keep in mind those projected highs are what it was costing us. Thats why so many people moved south and everybody was buying Diesel Rabbits. But we were highly paid back then with one worker households, and affordable 18% mortgages. I believe the average salary was $5,000 to $10,000/year. Times 15? $75000 to $150,000 today, but times 20 makes more sense. So avg $7500 times 20 $150,000 for one worker household, if they live very frugally.
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=f000000__3&f=m