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Discussion in 'News and Politics' started by D33RHUNT3R, Jan 2, 2011.
How will this effect you?
I'll believe it when I see it. They were warning about that a few years ago.
I plan to profit from it by buying oil ETF's. :up:
It will negatiely effect most small businesses due to less descretionary income.
Ahhh.....the wonderful information age. All someone has to do now is post things like this as a possibility and before long, we sit back and say, "We saw it coming." IMO oil companies put out crap like this just to see what our reaction is. If they could keep the price down while millions of gallons of oil were going to waste in the Gulf, they dang sure can do something to KEEP the price down. We were told that BP was paying the full cost of the spill----Yeah, Right!:down:
Don't think the public will stand for it, and there'll be HUGE pressure on the gov to drill here instead of depending on supplies overseas.
I think it was Obama who thought it was good to have $4-5 gas .. just not so fast.. So I have no doubt that we will be hitting $4 or more this summer..
I truly wished I believed this.. I thought the last time it got over $3 we'd start seeing folks make some changes in what they drive and the trips they make.. But to my amazement the price of gas guzzlers dropped and folks ran out and bought them as fast as they hit the car lot.. Tahoes and crew cab 4x4's seem to dominate the landscape around here and there is a constant line at all the stations.. It seems folks will cut back on groceries and personal health care before they'll think about cutting back on their vehicle or gas consumption.. So I don't know how high it will have to go before folks wake up and make some noise.. Not trying to argue just wish I could understand the average Joe's thought process a little better..:shrug:
If gas hits 4.00 a gallon again, then you can kiss economic recovery good bye. IMO this is what caused the problems with the economy to begin with. Heck we've got two incomes, and 3.00 a gallon is killing me right now. Unfortunately I can't cut back on anything else.
Oh yeah,,,Obama and the ruling class really listens to us.:soapbox:
What? The economy is starting to recover?!? Not so fast! says the big oil ceo.
If you factor in what tax dollars and lives are being spent to "protect" our oil resources, we already pay $4-5 a gallon, but we just don't realize it.
Any economic recovery we are makeing now wil be a thing of the past very shortly. But that's what Obama and Pelosi want, they want to bring our economy to it's knees so that we ( you and me ) will have to accept communist rule. They saw how people will welcome these changes by looking at history. Back in the Great Depresion, the folks were glad to stand in soup lines and work for the C.C.C & W.P.A. only this time they won't be temporary programs. They want us to be dependant on the government that way they stay in power. They don't want free enteprise, they don't want an american people that are free. And they will use as many weapons in their arsenal as they can, the moritorium on drilling in the gulf and refusing to drill in ANWAR are decisions that are putting a hangmans noose around the throat of this economy. That coupled with what they are doing with the financial world and the repeal of D.A.D.T show me that they are bent on the destruction of a country as we know it. We must do our reasearch on these issues, we must vote our conscience. And we must stay in touch with our congressmen, and let them know how we feel on these issues.
I drive a 130 miles a day to and from work. it'll hurt.
Living and working in Oklahoma City, higher gas prices mean higher crude prices - which means a better economy. As a commercial real estate broker, that's all good for me; however, it still hurts the household bottom line just the same. It's a Catch-22 for sure.
As for economic recovery - news flash: Crude Oil (the drilling, the production, the refinement, the futures trading, the resale of...all the way to the convience store on the corner in Gravel Ridge, AR) is the back-bone of Amerca's (and the world's) economy. If production is up, and demand is high (though the price my be high) by-and-large the economy is good.
It's called supply-side economics.
Which, by the way, means that high gas prices aren't controlled by some fat-cat CEO at Mobile Oil in Sugarland, TX. It's controlled on the trading floor on Wall Street (or, my belief, a dimly lit room in the Pentagon).
I have to disagree. Higher gas prices means that families have to cut back on everything else to just afford to go to work and back home. Which means less disposable income, which means that the economy goes back/stays in recession. Less people spending money, means more people out of work, so on and so forth. Right now I'm spending about $500 on gas a month. So if it goes up to $4.00 again. I'm spending probably about $600 on gas. That $100 goes along way to paying bills and spending money.
Fortunately the economy isn't judged by a single household (yours, mine, or our neighbors). The CSI (Consumer Spending Index) and capital markets are collective indicators of the overall economy's health. One marker in the index is crude oil, and if it's trading higher there is more trading activity across the board (while at the same time it means that the value of the USD is shrinking, but that's a whole of can of worms). Higher crude prices means higher pump prices, which means...you guessed it...an elevated CSI. But it also means more jobs in middle America, which creates more spending, which drives the CSI. That's a very MICRO look at it, but you get the picture.
The bottom line is that people don't change their habits - particulary in our mobile society. $4 dollar gas, for most, just means that they'll have to cut back spending elsewhere.
NOW...if $4 gas were to become the norm for an extended period of time, CSI would suffer across the board due to the cut-backs Joe Public has to make. BUT...in short intervals it's a good thing due to all the ancillary activities higher crude prices drive.
I do see the point that you are making. It's an interesting debate. I guess I just don't believe in most sciences (including economics). I work a for a survey research company and it's interesting how data can be skewed to be completely true, but so far off from what is real.
Guess I'm just against $4.00 a gallon gas. It would be hard for me to cut back anymore than we already have over the last year.
I would like to believe that, but I am not so optimistic. We have a "ruler" & his
global warming zombies who fly around in private jets & tell you we must get away from oil. Translation: the elites can use all they want & the peons' "us" can cut back. All the while they invest in wind tech. & solar panels, get richer
& drive the industrial nations down.
When is the last time we have built a refinery? We have huge oil reserves in ND & AK, but we let the elites tell us we need to buy less from "big oil".
Fun stuff, Americans are not tired of paying through the nose yet, we'll see.
I dont how $4 gas raises the CSI ? it would appear to be a zero sum gain ..at best..
I'm not going to spend more money when gas goes to $4 a gal.. as a matter of fact I as a consumer will spend much less and save more.. Why because I will just stay home.. no more fishing trips means I dont buy things from other business while I'm out.. I will just wait out the prices and if everyone else just stays home unless it is work related ..it wont take long for the prices to drop... I'm at that point now.. unnessasary trips will stop.. camping trips will come to a near stop..we will sit home watch TV and play video games.. I dont really see how that HELPS the CSI.. and theres a lot of folks like me..
Just because prices go up doesnt mean revenue will.. IMO.. It can have the opposite effect very easily ..Prices go up revenue goes down...there is a tipping pint .. I think $3-$4 is that point