Children are starting to die of hunger and starvation in Yemen, because food prices have become too high. That is no thanks to the high Oil price, which has pushed all prices up, clothing, housing, everything, because the farmers, textile workers, builders, everyone has to use oil, and when Oil is high, it brings high inflation, especially so in the developing countries, because the social welfare state is not there to help absorb the impact.
There was a time not long ago when I saw people in London suburbs were not using the car, because they could not spare the money for petrol. In 2009, I heard some farms in India who had acquired mechanised harvesters at great cost were not able to afford the petrol to use the combine harvesters.
As it is, because of numerous such factors culminating in poverty, as many as 320 farmers have committed suicide in Gujarat, unable to pay their debts or run their farms profitably. Only a few days ago, a farmer killed himself under a train because of difficulty paying the harsh moneylenders.
For similar reasons, people in so many countries are suffering, in Egypt, in Israel, Jamaica, Bangladesh, Kenya, Tanzania, Zimbabwe, Tunisia, Morroco, Spain.
The recession that has just started to set in in Europe and India, could be stopped in its tracks by a reduction in the price of Oil. $100 for Brent ICE and $85 for WTI or Nymex crude seem right prices to accomodate a Recovery. As the Saudi Oil Minister, Sheikh Ali Al-Naimi commented a few months ago, "there is no rational reason for the Oil price to be so high."
Additionally, in India the Reserve Bank must consider introducing a further repo rate cut, swiftyly, before the slowdown sets in and turns into the quagmire of a recession, which no one wants and may God forbid.
What next? Hope is eternal that the people of influence will listen and react.