The economy (not just OURS) cannot take $125 crude oil. The word is out that it may climb even higher to say 150 or even 200 per barrel. That would be catastrophic.

I wonder if the OPEC oil ministers ever took a college course in economics?

It would not be in the interest of OPEC to crush the world's fragile economy, but they seem bent on it. The rules of supply and demand don't apply to them anymore. They are holding to a minimal supply figure, keeping production to the minimum even though world demand for crude oil is climbing and will continue to climb. The supply is exactly the same as it was five years ago, and the worldwide demand for crude has climbed over 30 percent since then.

OPEC is not the only reason for the US prices. Our currency has taken a beating over the past three years. The dollar is about a third less powerful as three years past. If the buck was on a par with the Euro the price of a barrel of crude would be somewhere around 82 a barrel anyway. That's still to high.

Another reason for the sharp increase in crude's price is the speculators. The speculators are the money guys who buy and sell commodities. They are jumping on crude oil because of the rumors of $200 barrel prices. They make money when it goes up. They can also lose their money if it goes down.

I predict it will. That's because the world economy is going to fall straight in the toilet.

Here's why:

Everything takes energy to produce and distribute. Everything. Even the rice farmer in China who plants by hand and harvests his rice must get it to market. That requires trucks, trains and airplanes. They run on oil-based energy. The additional cost of that energy means the cost of the rice must go up. People who buy the rice must cut back elsewhere in order to eat.

Look at our country.

UPS, FedEx, Airborne, DHL and the USPS have to increase their prices. They use airplanes and planes consume oil-based fuel. The USPS already asked for a two cent postage increase this summer, and it will have to jump that a couple of pennies in order to keep up with oil price increases. I hear stories of 45 to 50 cent postage stamps within a year.

Passenger airlines are all running deficits and there will be fare increases almost every month.

Food prices are going up (Hey! Didn't you hear?) Part of that is due to the ethanol scam, but a big chunk is because of oil prices. It requires a lot of fuel to farm and make fertilizers. It costs more to get it to the distribution centers and stores.

Restaurant prices are climbing. I have changed prices on a restaurant's web site twice in the past month. Food costs more. So does heating, air conditioning, and even printing their menus.

People are paying more at the pump, and that is only a minor part of our economy. But people must get to work. They drive cars and trucks. Soon they will be forced to sell off the big ole pickup they drive to the mall. The pickups will take longer to sell and will have to sell at discounts, just as will those big SUVs, because who the heck wants to buy one now?

The auto manufacturers are way way behind on this. Detroit has always been way way behind. They will have to retool for smaller and more efficient cars, and they will layoff massive numbers of workers. Those workers won't be able to buy even the smaller more efficient cars.

Seniors on fixed incomes will be faced with even higher utility bills. They won't be able to pay. Their electric power and gas will be shut off.

School districts will be on the edge of bankruptcy because of higher energy costs.

Cities and counties will be, too.

Nobody will stand for tax increases to make it up because when you are already paying through the nose for food, gasoline and stamps who wants higher taxes?

Vacation trips? Forget it. That means resorts will suffer and some will shut down and some will go away forever. Las Vegas? How about not.

I told you so.

Just wait till November, if we still can afford to drive to the voting booth!

Oh. I almost forgot! Tomorrow, Monday, a first class stamp will cost you 42 cents.