The 2. 01. 1 oil shock The Economist. THE price of oil has had an unnerving ability to blow up the world economy, and the Middle East has often provided the spark. The Arab oil embargo of 1. Iranian revolution in 1. Saddam Husseins invasion of Kuwait in 1. With protests cascading across Arabia, is the world in for another oil shock There are good reasons to worry. The Middle East and north Africa produce more than one third of the worlds oil. Libyas turmoil shows that a revolution can quickly disrupt oil supply. Even while Muammar Qaddafi hangs on with delusional determination and Western countries debate whether to enforce a no fly zone see article, Libyas oil output has halved, as foreign workers flee and the country fragments. The spread of unrest across the region threatens wider disruption. The markets reaction has been surprisingly modest. The price of Brent crude jumped 1. Libyas violence flared up, reaching 1. February 2. 4th. But the promise of more production from Saudi Arabia pushed the price down again. It was 1. 16 on March 2nd2. Most economists are sanguine global growth might slow by a few tenths of a percentage point, they reckon, but not enough to jeopardise the rich worlds recovery. Review our cookies policy for more details and to change your cookie preference. By continuing to browse this site you are agreeing to our use of cookies. Computers Are Your Future 12Th Edition Test Bank' title='Computers Are Your Future 12Th Edition Test Bank' />Corvettes are dirty cars. I dont care how many times they go to LeMans with the Z06, a Corvette will always remind me of Dirk Diggler, the 1970s, shag carpeting. That glosses over two big risks. First, a serious supply disruption, or even the fear of it, could send the oil price soaring see article. Second, dearer oil could fuel inflationand that might prompt a monetary clampdown that throttles the recovery. A lot will depend on the skill of central bankers. Of stocks, Saudis and stability So far, the shocks to supply have been tiny. Libyas turmoil has reduced global oil output by a mere 1. In 1. 97. 3 the figure was around 7. Todays oil market also has plenty of buffers. Texarkana, Texas and Arkansas newspaper. Includes news, sports, opinion, and local information. Get latest info on Bank jobs in India and preparing for IBPS common bank exams in 20172018. Also know how to prepare for IBPS bank exams, SSC exams and other govt. On July 12th, a member from a popular boating message board posted a photo of some boats he didnt recognize near Dana Point, a small city on the California coast. If you are a teacher searching for educational material, please visit PBS LearningMedia for a wide range of free digital resources spanning preschool through 12th grade. Governments have stockpiles, which they didnt in 1. Commercial oil stocks are more ample than they were when prices peaked in 2. Saudi Arabia, the central bank of the oil market, technically has enough spare capacity to replace Libya, Algeria and a clutch of other small producers. And the Saudis have made clear that they are willing to pump. Yet more disruption cannot be ruled out. The oil industry is extremely complex getting the right sort of oil to the right place at the right time is crucial. And then there is Saudi Arabia itself see article. The kingdom has many of the characteristics that have fuelled unrest elsewhere, including an army of disillusioned youths. Despite spending 3. A whiff of instability would spread panic in the oil market. Even without a disruption to supply, prices are under pressure from a second source the gradual dwindling of spare capacity. With the world economy growing strongly, oil demand is far outpacing increases in readily available supply. So any jitters from the Middle East will accelerate and exaggerate a price rise that was already on the way. What effect would that haveWells Fargo is already facing a blitz of litigation and regulatory scrutiny after the bank announced it would reimburse 80 million to 570,000 people who may have. InformationWeek. com News, analysis and research for business technology professionals, plus peertopeer knowledge sharing. Engage with our community. It is some comfort that the world economy is less vulnerable to damage from higher oil prices than it was in the 1. Global output is less oil intensive. Inflation is lower and wages are much less likely to follow energy induced price rises, so central banks need not respond as forcefully. But less vulnerable does not mean immune. Dearer oil still implies a transfer from oil consumers to oil producers, and since the latter tend to save more it spells a drop in global demand. A rule of thumb is that a 1. Java Jre 1 7 51 Yahoo there. With the world economy currently growing at 4. But even a smaller increase would sap growth and raise inflation. Shocked into action In the United States the Federal Reserve will face a relatively easy choice. Americas economy is needlessly vulnerable, thanks to its addiction to oil and light taxation of it. Yet inflation is extremely low and the economy has plenty of slack. This gives its central bank the latitude to ignore a sudden jump in the oil price. In Europe, where fuel is taxed more heavily, the immediate effect of dearer oil is smaller. But Europes central bankers are already more worried about rising prices hence the fear that they could take pre emptive action too far, and push Europes still fragile economies back into recession. By contrast, the biggest risk in the emerging world is inaction. Dearer oil will stoke inflation, especially through higher food pricesand food still accounts for a large part of peoples spending in countries like China, Brazil and India. True, central banks have been raising interest rates, but they have tended to be tardy. Monetary conditions are still too loose, and inflation expectations have risen. Unfortunately, too many governments in emerging markets have tried to quell inflation and reduce popular anger by subsidising the prices of both food and fuel. Daz3d M4 Hair. Not only does this dull consumers sensitivity to rising prices, it could be expensive for the governments concerned. It will stretch Indias optimistic new budget see article. But the biggest danger lies in the Middle East itself, where subsidies of food and fuel are omnipresent and where politicians are increasing them to quell unrest. Fuel importers, such as Egypt, face a vicious, bankrupting, spiral of higher oil prices and ever bigger subsidies. The answer is to ditch such subsidies and aim help at the poorest, but no Arab ruler is likely to propose such reforms right now. At its worst, the danger is circular, with dearer oil and political uncertainty feeding each other. Even if that is avoided, the short term prospects for the world economy are shakier than many realise. But there could be a silver lining the rest of the world could at long last deal with its vulnerability to oil and the Middle East. The to do list is well known, from investing in the infrastructure for electric vehicles to pricing carbon. The 1. 97. 0s oil shocks transformed the world economy. Perhaps a 2. 01. 1 oil shock will do the sameat less cost. The Dirtiest Corvette Ever. Corvettes are dirty cars. I dont care how many times they go to Le. Mans with the Z0. Corvette will always remind me of Dirk Diggler, the 1. Even the new ones. Most owners I know embrace their heritage rocking excellent vintage mustaches and jewelry. They learned at an early age that gold goes well with a Corvette. I learned this as a kid too. I also learned that you never button your top three buttons when in the presence of a Corvette. You cant let it know that youre not cool. But this Corvette is different. Its like someone shrank it into a little Miata and then turned it into a dune buggyThis is Brian Ballinger and Chris Smithss build for the next Gambler 5. Before we get into how great this is, lets get one thing out of the way. This is my least favorite Corvette model. Its the one Barbie drove. Its the Corvette most likely to enjoy the latest Michael Bolton album with its owner. Yet Brian turned it into heavy metal. You see this pull up and you pray hes not here to pick up your daughter. No way Barbie would drive this. This is awesome. I actually dont know that much about Corvettes but I can only assume that the factory gas tank was somewhere near the rear bumper and all the stuff that Brian cut off. I assume thats why there is now a giant fuel cell dominating the back of the car. I also cant help but see the desert racing dune buggy like stucture thats been hiding under all that sports car. Amazing what a set of 3. Corvette. The mustache and mullet completes the look though. Brian and Chris call their creation the Van Damme Vette and it reminds me so much of my Baja Pig The really cool part about their build is that its still on the factory suspension. They just cut away the bodywork instead of putting the wheels outside of it. Brians entering it in the Detroit Gambler next Spring and you can follow the build on Brian Ballingers and Chris Smiths Facebook page. Maybe I should build a V8 powered CorvetteĀ I asked why he started with the Corvette and Free was the answer. Oh, and with the one condition that we race it This is how the best racing stories start. I naturally suggested he cage it and run in the Baja 1. Brians response was, Its on my bucket list.