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Old 02-23-2011, 12:44 PM
 
Location: Planet Eaarth
8,955 posts, read 18,714,842 times
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It might not hurt to change your lifestyle as much as you can in case $5 gas does become a reality.

"One of the quickest ways to bring down the U.S. economy would be to dramatically increase the price of oil. Oil is the lifeblood of our economic system. Without it, our entire economy would come to a grinding halt. Almost every type of economic activity in this country depends on oil, and even a small rise in the price of oil can have a dramatic impact on economic growth. That is why so many economists are incredibly alarmed about what is happening in the Middle East right now. "

5 Dollar Gas? Get Ready To Pay An Arm And A Leg For Gasoline
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Old 02-23-2011, 02:15 PM
 
3,853 posts, read 12,034,043 times
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great for my oil stocks. Hopefully they up the dividend and start buying up their own stock.
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Old 02-23-2011, 04:00 PM
 
8,317 posts, read 27,047,586 times
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The article is interesting, but--as usual--the journalists miss an important point: While $5/gal. gasoline would severely hurt the American consumer at the gas pump, it is the price of diesel fuel and jet fuel--both medium distillates--that can make or break the economy and/or lead to severe shortages for everything from toilet paper to food. And the price of diesel fuel is climbing fast. Given America's over-reliance on truck transportation instead of far more fuel-efficient rail, $4 per gallon for diesel fuel is about the point that it breaks the back of the American economy. In most of the country, we're less than 50 cents from that price for diesel fuel. At the very least, we are going to be confronting severe inflation in most basic commodity prices, as well as imports. That will probably destroy what is left of the discretionary spending ability of all but the wealthier consumers in this country. We may find that a lot of "stuff" that we think are "necessities" are actually luxuries that we can do without. That wouldn't necessarily be a bad thing, in my opinion.
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Old 02-23-2011, 04:13 PM
 
Location: Planet Eaarth
8,955 posts, read 18,714,842 times
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Quote:
Originally Posted by jazzlover View Post
The article is interesting, but--as usual--the journalists miss an important point: While $5/gal. gasoline would severely hurt the American consumer at the gas pump, it is the price of diesel fuel and jet fuel--both medium distillates--that can make or break the economy and/or lead to severe shortages for everything from toilet paper to food. And the price of diesel fuel is climbing fast. Given America's over-reliance on truck transportation instead of far more fuel-efficient rail, $4 per gallon for diesel fuel is about the point that it breaks the back of the American economy. In most of the country, we're less than 50 cents from that price for diesel fuel. At the very least, we are going to be confronting severe inflation in most basic commodity prices, as well as imports. That will probably destroy what is left of the discretionary spending ability of all but the wealthier consumers in this country. We may find that a lot of "stuff" that we think are "necessities" are actually luxuries that we can do without. That wouldn't necessarily be a bad thing, in my opinion.
Very informed post. Thank you!
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Old 02-23-2011, 04:22 PM
 
2,721 posts, read 3,914,615 times
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Originally Posted by killer2021 View Post
great for my oil stocks. Hopefully they up the dividend and start buying up their own stock.
Exactly what I was thinking. Lets hope it hits $15/gal. =)
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Old 02-23-2011, 04:24 PM
 
Location: Near a river
16,042 posts, read 20,046,065 times
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Quote:
Originally Posted by jazzlover View Post
The article is interesting, but--as usual--the journalists miss an important point: While $5/gal. gasoline would severely hurt the American consumer at the gas pump, it is the price of diesel fuel and jet fuel--both medium distillates--that can make or break the economy and/or lead to severe shortages for everything from toilet paper to food. And the price of diesel fuel is climbing fast. Given America's over-reliance on truck transportation instead of far more fuel-efficient rail, $4 per gallon for diesel fuel is about the point that it breaks the back of the American economy. In most of the country, we're less than 50 cents from that price for diesel fuel. At the very least, we are going to be confronting severe inflation in most basic commodity prices, as well as imports. That will probably destroy what is left of the discretionary spending ability of all but the wealthier consumers in this country. We may find that a lot of "stuff" that we think are "necessities" are actually luxuries that we can do without. That wouldn't necessarily be a bad thing, in my opinion.
Good post. Good points. But...doing without toilet paper?

What about the basic necessities of life, like coffee and chocolate?
(I can do without a car, but not without these--I am serious)
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Old 02-23-2011, 04:29 PM
 
48,508 posts, read 88,431,788 times
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It will alkso effect the prices of the other 19000 essentail products made fronm crude. Basically tho people will adjust where they need to as always.They will coutdown o other purchaes as that have in the past liike skip that new computer;skip going out to eat and stop going further to shop. The sub burb merchats will benefit.
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Old 02-23-2011, 05:17 PM
 
Location: Near a river
16,042 posts, read 20,046,065 times
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Actually, come to think of it, oil is a priceless, expendable commodity. Why shouldn't its cost rise dramatically like any other commodity, like gold?

I have no problem with the price of oil going off the charts. For one thing, it will force, finally, the development of clean natural energy sources like wind and solar. Not fast enough for our greedy consumption of course, but enough to keep humans alive on the planet in a new way of life. High prices will force us also to rethink how we eat, grow food, and distribute it. I see good things coming of it, if we do the right things (which of course we won't, at least not in time ....or maybe... ).


google CNN report: Ex-Shell president sees $5 gas in 2012

google CNN Money report (today's post): Libya oil production grinding to a halt

Last edited by RiverBird; 02-23-2011 at 05:37 PM..
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Old 02-24-2011, 01:06 AM
 
Location: state of procrastination
3,487 posts, read 6,686,622 times
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If so, then it is on to electric cars and mopeds.
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Old 02-24-2011, 04:37 AM
 
85,304 posts, read 82,827,155 times
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wait to you see what your utility bills will be if we drove electric cars. most utilities have no where near the capacity to provide power to charge our cars when needed on a large scale so guess who will be paying for those billions that will be spent to increase capacity! right here in long island LIPA is offering huge rebates for changing lighting to energy efficiant stuff just so they can avoid building in anymore capacity.
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