Here We Go Again!

Hi Everyone:

Have we as a nation become so complacent that we just swallow whole anything big businesses say? Case in point is the rising oil prices, hence rising gasoline prices? I don't see people hanging out their windows and yelling I'm mad as hell and I not going to take it. Per some experts, it appears that by springtime we may be heading for gas that costs $4.00 per gallon AGAIN! It is when gas prices reach $4.00/gallon that people get upset and start to complain. I previously blogged about this very subject twice before on 3/8/09 and 6/21/09.

Last month I read somewhere that for the first time in U.S. history (since total U.S. oil consumption was tracked), that we as a nation, have consumed less gasoline for 2 years in a row. That has never happened before. Not even during the 2 OPEC oil embargoes of the 1970's did we use less gas 2 years in a row. In my opinion, gas prices above $4.00/gallon had a lot to do with it but the Great Recession also had a lot to do with it. The American driving public using vehicles that get better mpg including hybrids also helped a lot. Soon as more electric vehicles are in use the consumption should be even less. So why are gas prices rising and may hit $4.o0 again?

The answer that we hear is the same old story as before in 2008. Developing countries like India and China are using more oil/gas hence the reason for the increases. Well, when prices hit $4.00 several years ago, it was determined that speculators had more say in the price of oil/gas then actual consumption had on it. So you can throw out whatever you learned in economics 101. Supply and demand economics is meaningless when it comes to oil prices. Greed is the main driving force for the current price increases. With the world trying to recover from the Great Recession, (remember that the experts have said that the recession is over, lol) steep price hikes in oil will send numerous economies that were already on the brink, in a tailspin.

What I don't understand is why we are all so complacent and being so quiet about the increases? The complacency is deafening to me. How can speculators be so damn greedy that they are willing to risk a double dip recession that will have detrimental effects on this country as well as many others? Oh right, greed sure does seem to be the most important aspect with them.

I now firmly believe that common sense should be used with oil speculators. Oil speculating should be outlawed and let supply and demand be used to determine prices.

Common sense rules and greed drools!

Til next week.

Peter