“You’re adding an oil shock on top of a crunch on credit and a housing collapse. Even the U.S. economy cannot withstand all of that at the same time.” Nigel Gault, an economist at Global Insight, didn't mention falling new car sales or millions of endangered auto loans in his analysis of the impact of rising U.S. gas prices. But then, he didn't have to. It's been clear for years how this one will shake out, with truck-heavy domestics losing both sales and market share. The New York Times says that when it comes to American gas prices, the only way is up. "Energy specialists predict that, as demand picks up further this spring and summer, retail prices will surpass the high of $3.23 a gallon set last Memorial Day weekend." Surveying the supply, demand (both international and seasonal) and production equation, AAA spokesman Geoff Sundstrom reckons we could see $4 a gallon gas this summer. “We’ve gone from a worrying situation for gasoline to one that is quite alarming." Meanwhile, automakers placing their bets on oil burners will not be happy to read that "on Tuesday, diesel prices rose to a record $3.60 a gallon, compared with $2.62 a gallon last year."
10 Comments on “Rising Gas Prices Brewing Perfect Storm...”
Back to TopLeave a Reply
You must be logged in to post a comment.
You can also login using Facebook Connect.
Add to the mix is the continuing devaluation of the U.S. dollar it’s no doubt we will see $4 a gallon gas. I can easily see $5 a gallon up until the presidential election. It’ll get worse before it gets better.
We’re watching a shift of power and influence:
The G-7 should no longer consist of four European countries, the U.S., Canada and Japan. There should be only one European representative. The remaining three slots should go to China, India and one African country. There will be great protests from the Europeans at consolidating their position, but the current membership of the G-7 no longer reflects the changing reality of the global economy. The G-7 must adapt or become irrelevant.
http://online.wsj.com/article/SB120364005662584563.html
i usually read the truth about cars after a refreshing visit to jim kunstler’s latest rant about peak oil. jim is probably off a bit in his timing but most probably right on target about the endgame. timoted, it ain’t going to get better …
buy a small car – if there were any reasonable ones available in these united states. otherwise, it’s on yer bike!
Nothing we do will affect demand in china and india. Billions of people want to feel the rush of driving down the road for the first time.
Bloodnok, If you like Kunstler, you’ll love Orlov:
http://cluborlov.blogspot.com/
A few years ago, Orlov put forth a thought-provoking comparison of the Soviet and American Empires (having lived back and forth between them), and has made a cottage industry of drawing lessons from the Soviet collapse.
Donal,
Being in DC, it can be surprising how often people here make the analogy (Moscow-on-the-Potomac), or refer to the White House as the Kremlin.
One difference technology makes–we can use Photoshop instead of airbrushing to get rid of the Unfavored from photos of the
PolitburoCabinet.Nothing we do will affect demand in china and india. Billions of people want to feel the rush of driving down the road for the first time.
I agree. We better prepare for space exploration right now…
There’s a reason why people are moving big into rail.
http://www.thetruthaboutcars.com/editorials/congestion-charging-at-the-energy-lean-buffett/
They had a guy on Michigan Matters which is a local political TV show. He was buying real estate and held thousands of properties when the market went kaput. Made a deal with the banks to get himself off the hook and now is making a mint teaching others how to avoid paying their debt or in other words taking any responsibility for their actions. Ayn Rand got it so right in Atlas Shrugged and that was back in 1957.
bill h,
Orlov’s take went far beyond political analogy:
The Soviet Union and the United States are each either the winner or the first runner-up in the following categories: the space race, the arms race, the jails race, the hated evil empire race, the squandering of natural resources race, and the bankruptcy race. In some of these categories, the United States is, shall we say, a late bloomer, setting new records even after its rival was forced to forfeit. Both believed, with giddy zeal, in science, technology, and progress, right up until the Chernobyl disaster occurred. After that, there was only one true believer left.
http://www.lifeaftertheoilcrash.net/Archives2008/OrlovLessonsPartOne.html
http://www.lifeaftertheoilcrash.net/Archives2008/OrlovLessonsPartTwo.html
http://www.lifeaftertheoilcrash.net/Archives2008/OrlovPartThree.html