What is missing from this analysis is that oil is a global commodity, and its price is not simply a function of demand in America. As demand is destroyed here, it is being created abroad. The result will be rising oil prices, despite the fact that Americans will be using much less.

Schiff could say even more -- the Asia picture is even more bullish for oil. As they lower their price caps, this results in oil and gasoline being taken off the global market for their domestic consumption. That raises the global price too. This is not just theory: it has been the outcome every time China has ratcheted up the caps.

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