New Bubbles, Mounting Debt: Preparing for the Coming Crisis

The global economy is clearly headed for another recession after a decade of lukewarm recovery. The bailouts and loose monetary policy of the post-2008 world did nothing to fix the fundamental causes of capitalism’s latest systemic crisis. Instead, they papered over structural weakness while enabling another orgy of irresponsible lending and rampant speculation.

How high oil prices lead to recession

There is ample evidence that spikes in oil prices leads to recession, at least in the US, which is an oil-importing nation. James Hamilton has shown that 10 out of the last 11 US recessions were associated with oil price spikes. How does this happen? An analogy can perhaps help explain the situation.