The 90s were a great time. The economy was rocking. The US reputation was growing worldwide for statesmanship and diplomacy. Things were pretty darned good.

And we're not going to see them that good again for a very long time.

One reason: oil.

Prices are going to continue to go up. And up. And up. And everything we do requires energy. It requires energy to harvest the natural resources that go into the products we make and the foods we eat. It takes more energy to transport those items to the manufacturing plants, which then consume enormous amounts of energy to transform the raw materials into finished goods. We then transport those finished goods around the globe.

At that point, the products go into stores -- which use energy to light the products, run their computers, heat or cool their buildings, and do all the other things involved in operating a store.

We then drive to the store -- burning energy. When we get home, we heat or cool our houses and use electricity to run our lights, our computers, our various appliances.

The end result is clear -- as the cost of oil goes up, the cost of everything else is going to go up.

We won't find equilibrium, as we're chasing after a diminishing good.

The result will be that everyone is going to be squeezed. More and more of our money is going to go into energy. Similarly, our employers will spend more money on energy, leaving less money to pay salaries. Or alternatively prices go up but salaries remain flat.

Either way we're squeezed, squeezed, squeezed.

When does it end?

When oil stops defining our economy.