Sir Richard Branson says oil will be $200 per barrel by the end of next year and that it will cause major disruptions in the airline business.
The founder of Virgin Group and president of Virgin Atlantic said airlines operating older, less fuel-efficient fleets, such as United Airlines and American Airlines, could be forced into administration (bankruptcy) as a result of the relentless rise in oil prices.
At $200 oil, many businesses that have relied on cheap fuel will not make sense. WalMart runs a 10,000 supply chain from China that will be increasingly stressed by high transport prices. The Industrial agriculture system in the U.S. which runs on big machines and lots of oil based fertilizers could come under pressure.
Consumer credit as a percent of income is around 124% and that’s the highest since at least the 1960’s. I don’t think we can depend on putting our future on a credit card. We better start thinking about solutions pretty soon.