Sunday, 14 August 2011

Oil prices signal another recession « ArabianMoney

Whenever before the cost of oil as a proportion of global GDP has hit current levels that has been a red alert for an imminent recession or meant that we are already in one. Will it be any different this time?

You can see the ‘oil expense indicator’ as a tax on business and consumers. You can see it as a natural break on consumption because oil supply is not infinite. Whatever, it means a recession.

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