As per my longer-term outlook for inflation (see the “Inflation” category), I see a situation where constant application of QE as well as a growing appetite for oil from emerging markets produces a situation where a strengthening global recovery leads to higher oil prices, causing persistent weakness in the US economy.  We may be in for a period of increased longer-term vulnerability to exogenous shocks.  

This persistent headwind will only make my thesis for alternative energy being the source of the next secular bull market even stronger.  It is the common sense next step.  Oil prices are capping the economy?  How do we fix it?  We begin to produce other forms of energy.  Done!