Yesterday, CNN broadcast yet another program about the "energy crisis" and speculated about the events that could lead to more than a crisis -- a nightmarish energy catastrophe -- in 2009. But without the faintest understanding of why oil prices are high today, all these analyses, prognostications, and alternative energy schemes are worse than useless. They are dangerous.
See my article on the crucial link between oil and monetary policy -- "The Elephant in the Barrel" -- in the Weekend Edition of The Wall Street Journal (sub. req.). Non-subscribers can go here for the full article.