Tuesday, April 18, 2006

Oil Prices: Shock & Awe

Robert Kiyosaki's "The Rich Get Richer" column today is "The Coming Oil Crisis" and it's a scary read. Robert's writing (and probably investing) style is one I'd characterize as "shock & awe" since he's essentially a counterpoint to conventional personal finance planners and investing advice. (Kiyosaki never recommends Vanguard Index 500 funds, for example, not by a long shot.) This is a two-part examination of rising oil prices and the impact on global economy. Here's the scariest except:

"If energy costs continue to rise and our economy stops growing and starts shrinking, many stocks will crash, older Americans will not be able to retire, inflation may skyrocket, businesses will close or cut back, and jobs will be lost. Not only will we be facing global warming, we'll be facing civilized chaos."

We'll have to wait until his next column to see what strategies he recommends for surfing the energy gap, if that's possible:

"In my next article, I'll go into what I'm doing to prepare for the gap, as well as why I believe the gap can't be avoided. In other words, it will not be 1973-1974, or stagflation, all over again. I believe it will be the end of civilization as we know it -- and possibly the birth of a brave new world."

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