The Petro Business Cycle | James J Puplava CFP | FINANCIAL SENSE
If you want to know where the economy is heading, watch the price of oil. Oil is used to power over 90% of our transportation fleet from land, sea, to air. It is responsible for 95% of the production of all goods found in stores. It is also directly linked to 95% of our food products, from the fertilizer used in the planting cycle to the diesel used in tractors to the trucks that transport the food to processing plants and grocery stores. Look behind nearly any consumer item, building material, or medical device and you will find it linked to oil in some way. Plain and simple, we live in a petroleum-based society. It is the common thread behind all industrial/modern economies. Without oil our present way of life would cease to exist. For this reason, it is not only the most highly sought-after resource by nations worldwide, but also critical in driving the natural rhythms of recession and recovery. We define this as the "Petro Business Cycle".