Gas Prices And The Economy

Why do I do the From "The Energy Front" EVERY Week?

Hey folks,

Why? Because you can not separate Gas, and Heating Oil, From the Equation. I know, I know, the Government does. They do not add in Gas and Food, when figuring inflation. Why? I do not understand. But they don't.

However, in the REAL World, you can not leave out the price of Energy. Gas effects the price of just about EVERYTHING. From Powering your home, Vehicle of course, to the cost of EVERYTHING that you get in the Stores. When Energy Costs and Gas Prices go up, it costs more to MAKE, SHIP, and even SELL, all those thing that you go to your local store to buy. Just like higher taxation, Corporations, and Businesses do NOT pay the increase. They do not even pay Tax in general. YOU do. They pass it on through the price of the Goods you want to buy. So affordable energy, and Gas Prices, mean affordable EVERYTHING else. Oppressive Costs raise the price for EVERYTHING else.

Some of you got upset with me in the past because I told you the truth. You said that I was using fear tactics. No. It's called Reality. Someone making a million a year, or even say $100,000 a year, might not worry about the price of Gas. Those in Power, the President, Senators, and Representatives, MOST of whom are Millionaires, do not care about the Price of Gas. But Grandma does. The Single Mom working two Jobs does. ANYONE on a fixed income DOES. Remember $4.00 a gallon for gas? EVERYTHING went up. Now those who have fixed Incomes have to start making decisions. What to cut. Does Grandma heat her Home, or buy Prescription Meds, or FOOD. That Single Mom MIGHT have to now give up one of those Part Time Jobs, because she can no longer afford the Gas to drive there. Well, we are heading back to $4.00, and WAY beyond.

I couldn't get away from it yesterday. All I kept hearing, all day, was another in the Wilderness, CRYING out. $5.00 a gallon is coming. The former CEO of Shell oil , John Hofmeister, says gasoline prices in America could reach $5.00 gallon by 2012. He actually said this.

"I'm predicting actually the worst outcome over the next two years which takes us to 2012 with higher gasoline prices,"

Now even those that want to disagree with him, and call him out for "fear mongering," AGREE with him. How does that work? Yeah, Yeah, we will see $5.00 a gallon, but uh, now right now, so uh, don't worry about it. Here is an example of what we got yesterday. Tom Kloza, the Head Analyst with Oil Price Information Service says he's right, however,,,

"That wolf is out there and it's going to be at the door...I agree with him that we'll see those numbers at some point this decade but not yet. The demand is still sluggish enough in some of the mature economies."

We do NOT have to see them AT ALL!!! The only reason we ARE seeing them, is OBAMA. Is this insane and completely pointless Drilling Moratorium. It is NOT saving the Planet. It is not making us Cleaner. Others ARE still Drilling and INCREASING their exploration and Drilling, and THEY do not have to meet Obama's insane and oppressive Regulations.

Let me remind you yet again what Obama said about the $4.00 a gallon Gas Price. He likes it. He would just have preferred a more gradual increase.

"I think that I would have preferred a gradual adjustment. The fact that this is such a shock to American pocketbooks is not a good thing. But if we take some steps right now to help people make the adjustment, first of all by putting more money into their pockets, but also by encouraging the market to adapt to these new circumstances more quickly, particularly US automakers, then I think ultimately, we can come out of this stronger and have a more efficient energy policy than we do right now."

Well? Gas is at $3.10 a gallon, and going up. By 2012, we are talking $5.00 a gallon. Is THAT gradual enough? So he costs us, AGAINST TWO COURT ORDERS, around 150,000 current Jobs, 57,000 NEW high paying, long lasting, REAL Jobs. Added Billions if not TRILLIONS to the Local and Federal Government Revenue stream loss. Which did and WILL increase the Deficit. December 1st, 2010, Obama and Crew came out and said NO NEW Drilling. Period. For some fictitious 7 year period. He did telegraph this. He TOLD us he was all for high Gas Prices. He TOLD us that our Energy Prices would "Necessarily Skyrocket." under his "Cap and Tax" Bill. Why? Motivation to go "Green."

Big Oil gets blamed for this all the time. They refuse to increase Supply, causing Demand to rise. So what happens when the Ruler of the Biggest Source of Oil and Natural Gas says "No new Drilling. No. We are not going to use OUR own resources?" We will not allow an increase in Supply? Yup. $5.00 a gallon Gas.

Folks, the Federal Government may not want to add in the Cost of Energy and Food. However, in the REAL WORLD, we must. We MUST have Energy and food. It really is that simple. They ARE real necessities, that cost REAL money. They are all about to cost a lot MORE, thanks to Obama and Crew.
Peter

Sources:

CNN Money.com - Ex-Shell president sees $5 gas in 2012