Interesting, and yet we're told inflation is only 3%.
Gasoline is $3.00 a gallon, but the housing market is the only one you claim to be "over inflated" as if there are no "consumer goods" connected with it...I guess some people have a problem with understanding supply and demand.
Reprint where I stated inflation has no connection with consumer goods(?) It's obvious it does.
When unleaded hits $4.00 and $5.00 a gallon (for starters) it's also obvious consumer goods will rise substantially since transportation coast shall be passed on to the public.
In terms of supply and demand, when homicidal jihad-O-maniacs threaten a large chunk of global oil supplies, the energy market perfectly understands substantial risks of diminished international supplies, therefore prices shall soar to levels most can not even fathom - at this point.
Imported oil/natural gas based demands will continue accelerating with the expanding overseas economies of India, Red China, until prices for that energy become so high individual nations begin cuts back of major orders, as happened during the 1998-99 Asian Economic Flu, which plummeted crude oil spot prices to 1975 price levels resulting in pump prices of being under $1 a gallon.
Cycles repeat themselves, but with the such unstable threatening OPEC wild cards as Iran, Nigeria, Venezuela and the acute venerabitlies of the Wahhabist (Saudi) petroleum infrastructure, new highs have yet to be tested not only in the energies, but the metals complex and even orange juice prices with the prospect of this coming hurricane season.
When the ongoing, sever bullish market components subside, so shall the spot price, only the drop will be twice as rapid on the bearish side. First the world will have to get through the remainder of spring and summer. A long hot summer in many respects.