Crude approaching $50

Just got back from a stroll around Buenos Aires and a lunch with some friends. I couldn't resist posting this chart of oil prices, as it reinforces my belief that deflation is not a threat to the world economy. Oil prices have rebounded quite a bit from their recent lows. It also suggests that global demand is not collapsing. Don't believe the horror stories that are making the rounds. Here people are terrified with the news they get, since it greatly exaggerates the plight of the U.S. economy.

A filet mignon steak with french fries at a nice restaurant costs about $11; a salad big enough for three costs $4; a wine near the top of the price list costs $23; medium priced wines are around $10. It's a lovely day here, with perfect weather. The sidewalks are full of people. In the Plaza Libertador there is an exhibition of 140 "Buddy Bears" that have been painted by artists from all of the countries of the world. Here's a picture.

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