[alleyyooper]

I have been watching the news the last couple of weeks.
Just wondering why we dont get any opinons from the talking heads on what could happen if we see $6.50 gallon gas and how it will effect the USA economy ? Peoples dispossable income is drying up. It seems for me at least every thing i make is going towards food, housing, energy, medical and taxes. I dont see anything being bought extra in this country in the next few years. If we see 6.50 gallon gas or higher in the next year will we even be able to drive to work, buy food outside are growing zone ( how can we afford to truck the food all around the country ) ? It seems we will really hit some hard times. Just wondering what some of you guys think that are a lot smarter than me.

Now what I think.

The cost of food will go high and in the USA with a year like this one your going to have all you can do to heat the home and eat. If you can't walk to work or ride a bike you probably won't work as you can not afford to travel to work.

What may happen is the revolt. But I doubt that as there isn't any leaders any place in America worth a hill of beans for brains, or who can unite all the Americans with different agendas.

Most all industry that is still left in America will close their doors any way. Even with minium wages paided they could not afford the cost of shipping raw materials, heat and other cost like electric not to mention shipping to places when people could not afford the product any way.

Even farming will be a thing of the past excet for the farmers family and they will probably go back to useing horses to farm the food they need to keep them selves alive.

But again maybe the future will see heads come out in the sun shine and relize that electric cars/trucks are not the answer for rual America. Maybe to save the industry the auto companys will start making motors that will run on hrydgen, soy bean oil, sun flower oil and some thing like gasoline will ruin a motor.

Will be a increase in pet food cost also, not because of the pets but the elderly on fixed incomes trying to afford to eat. Country people will shoot their food when ever they like.
States crying about money whoases today will not have any fish and game enforcers as they could not afford the fuel to get them from place to place.

What say you?

Al

[JGatti]

If they sit idle the country will collapse.........again. I still personally blame the fall of Michigan on the gas prices because it impacted our two biggest industries. Auto and tourism. So look at every industry effected in a domino effect with those two. Manufacturing, hotels, restaurants, local mom and pop shops and the list can just go on forever.
What pisses me off is that there were recent article saying that with the new oil being found in our very own country we have enough to last 200 years...... of our OWN. So why the powers that be will sit and do nothing and let the country fall again is beyond me. $6.50 a gallon will kill the auto companies...... again therefor I will lose my job......again. My new water toy can go back to the bank and they can eat it. Then the Government can bail them out again because people will once again lose their a$$es on their homes, turn over cars, trucks etc. It seems they use the gas to control us and take our freedoms little by little. " Oh you didn't learn your lesson last time? Well we'll just have to let it hurt a little more this time". Food prices are already out of control. My living expenses have gone up and stayed up. My pay has not, but my medical fee's and union dues have really jumped as well. Everyone is about take take take spend spend spend screw screw screw, and we just sit back and take it. What a shame.

[Retroit]

First of all, I don't claim to be a lot (or even a little) smarter than you, so that is not why I am posting.

Second, do you really think that using blue ink will offset the higher cost of gas? (sarcasm )

Third, I have heard the "talking heads" talk about the possibility of rising oil costs due to the revolution in Lybia. I've heard the figure of 2% of our oil coming from there. What I haven't heard anyone mention is whether or not revolution in Saudi Arabia is likely, as much more of our oil comes from there. The gas prices in my area have shot up 30 cents in just the last few days.

I think that any steep rise in oil prices will be temporary like that of '08. The revolutions in the Middle East seem to be quickly resolving themselves (so far). The long term price of oil has more to do with supply and demand than with political disturbances.

Personally, I think gas prices will go up this year, but probably not as high as $6.50. Maybe more like $4-4.50. The auto industry may go through what it did the last oil spike: lower sales, accusation of foolishness for building SUVs, begging the government for loans, filing bankruptcy, dumping shareholders, etc. I still don't think their management is smart enough to set aside some of the recent profits into a rainy day fund. Instead they are giving bonuses, which I suppose is the politically correct path to take. They can always come begging for loans when the need arises.

Of course that's not to say that your scenario is impossible. One critique I will make is that if "the auto companys will start making motors that will run on ..., soy bean oil, sun flower oil...", we'll have the same effect that we did with ethanol, which is an increase in food prices because more land is being used to grow fuel instead of food. So that wouldn't be the answer.

[Jwo85]

It all starts with Michigan people not wanting public transit. Every time a leader comes into play to try and get the ball rolling in the metro area, the idea gets shot down by the residents who call up the representatives.

IMHO those who shoot down Public transit have no right to complain about the rise in oil/gas prices when alternative ideas are trying to be put into place for this very reason. It's the same principle that we use for "you don't have the right to complain, if you did not go out and vote during elections"

If we had the infrastructure in place, then the op's worry about people not being able to get to work would not even be a worry at all as they have an option.

[JGatti]

Originally Posted by Jwo85

It all starts with Michigan people not wanting public transit. Every time a leader comes into play to try and get the ball rolling in the metro area, the idea gets shot down by the residents who call up the representatives.

IMHO those who shoot down Public transit have no right to complain about the rise in oil/gas prices when alternative ideas are trying to be put into place for this very reason. It's the same principle that we use for "you don't have the right to complain, if you did not go out and vote during elections"

If we had the infrastructure in place, then the op's worry about people not being able to get to work would not even be a worry at all as they have an option.

I honestly don't think Michigan is set up to where public transportation. The way the suburbs have grown and been designed ( well lack of planning of design) public transportation would not benefit enough people to make it worth the investment. I live in Highland and work in Plymouth. I drive a 2002 Ford focus ( winter death trap) 28 miles each way. I don't see them building anything that would help me get to and from work. There is talk about Ann Arbor rails to downtown Detroit, or a terminal in a suburb like Royal Oak to downtown. But realistically how many people will drive to that city to take a public form of transportation or even have a need for it to go downtown? Very few in the grand scheme of things.
In addition Michigan is still struggling, where is this money going to come from? Higher taxes? Gas tax? Government aid?

[Jwo85]

Originally Posted by JGatti

I honestly don't think Michigan is set up to where public transportation. The way the suburbs have grown and been designed ( well lack of planning of design) public transportation would not benefit enough people to make it worth the investment. I live in Highland and work in Plymouth. I drive a 2002 Ford focus ( winter death trap) 28 miles each way. I don't see them building anything that would help me get to and from work. There is talk about Ann Arbor rails to downtown Detroit, or a terminal in a suburb like Royal Oak to downtown. But realistically how many people will drive to that city to take a public form of transportation or even have a need for it to go downtown? Very few in the grand scheme of things.
In addition Michigan is still struggling, where is this money going to come from? Higher taxes? Gas tax? Government aid?

Michigan and the residents had many chances to support these infrastructures over the past 20 years, the state even turned down money from the federal government.

[JGatti]

Originally Posted by Jwo85

Michigan and the residents had many chances to support these infrastructures over the past 20 years, the state even turned down money from the federal government.

I grew up in Southfield. Spent many years in the cities around it and had family in Novi before it developed, in north Milford/White Lake before it developed. Brighton before it developed. Watching these cities develop and grow and expand the way they did I still do not see how public transportation could have been implemented. It has nothing to do with support and everything to do with what everyone calls urban sprawl. Other states plan their communities, Michigan has never really seemed to have a grand plan and they still don't. So to try and change things now with nothing in place ( and I still don't think it could have been done then) I just don't seeing it as affordable, practical or doable. I remember riding our bikes on 696 while it sat unused and unfinished for years because it would have to go through neighborhoods, take out houses etc. It was in court for years if I remember right before they were finally able to proceed. Now we are going to do the same for mass transit? I just don't see it happening. Just my opinion.

[JimmyInGreatLakes]

I don't think gas will jump that high. Doesn't mean it won't but I doubt it will. I don't like rising prices but it is what it is. We deal with it the best we can. At some point the price should drop because of supply and demand. The "alternative sources" just don't cut it, basically window dressing/symbolism. We need oil and will always need oil. If we would open up more drilling in America we would employ more Americans, keep the money here and avoid putting the money in the hands of those who hate us anyway. I think if gas keeps rising, even the idealists that stand in the way of more domestic drilling may see the light and loosen up. The spill in the Gulf didn't help perceptions but it wasn't near the disaster the alarmists claimed it would be. Nature has a way of fixing things up pretty handily.

[brooklynborndad]

"Just wondering why we dont get any opinons from the talking heads on what could happen if we see $6.50 gallon gas and how it will effect the USA economy ?

....

Most all industry that is still left in America will close their doors any way. Even with minium wages paided they could not afford the cost of shipping raw materials, heat and other cost like electric not to mention shipping to places when people could not afford the product any way. "


Er you do realize that the price of gasoline is mostly driven by world oil prices, which have increased recently with economic recovery in east asia, and more recently with unrest in the middle east? Higher fuel prices are a reality AROUND the world. It would effect the cost of US industry's exports and domestic shipments - it would ALSO effect the cost of the shipments of EVERY country in the world.

[michmoldman]

I am not buying the ones that say most industries will close their doors. Actually, they will probably lay a few people off or not hire..(if they were planning to). Maybe a year or so of this and the huge stockpile we have will then be used... instead of saving it to pay/trade off our massive debts.