$3.37 Gas & $3.58 Diesel - Thrilled.

[Redneck in training]

and, of course, the situation in the Middle East isn't helping

They are hungry and realize that the US gov't/Fed is causing huge spikes in food/energy prices. That was the catalyst...

QE is here to stay.

Actually hunger is not the cause of ME unrest. It is human dignity. They are fed up with corrupt governments.
I just returned home from ME and herd the story from an engineer from Tunisia. There was an unemployed guy with PhD selling veggies on the street to make some money. Police confiscated his stand but he showed up next day again. When police woman was taking his stuff he grabbed her hand and she slapped him on his face. To be slapped by a woman is very humiliating in Arab world especially when it happens on public place. He went back home got some gas returned to the street pored gas on himself and lit the match. The story spread and started unrest that eventually toppled the Tunisia government and ignited unrest in other ME and North African countries.

The problem is what next. I am afraid that they will choose religion (as it happened in the past) and end up worse than before. And also hostile to the West.

 

[JB4310]

Got a forwarded email yesterday that said if you want to lower fuel cost don't buy from Exxon/Mobil for, I think, one year (maybe just a month?).

They would lower cost as much as possible, and the others would follow. Makes sense, but you know once they lowered price by 3 cents, all the bargain hunters would flock back to them. so it would probably never work

It would be no problem for me, I never buy from Exxon/Mobil now, not for protest, they are not the closest ones to me.

JB.

 

[schoolsout]

Actually hunger is not the cause of ME unrest. It is human dignity. They are fed up with corrupt governments.
I just returned home from ME and herd the story from an engineer from Tunisia. There was an unemployed guy with PhD selling veggies on the street to make some money. Police confiscated his stand but he showed up next day again. When police woman was taking his stuff he grabbed her hand and she slapped him on his face. To be slapped by a woman is very humiliating in Arab world especially when it happens on public place. He went back home got some gas returned to the street pored gas on himself and lit the match. The story spread and started unrest that eventually toppled the Tunisia government and ignited unrest in other ME and North African countries.

The problem is what next. I am afraid that they will choose religion (as it happened in the past) and end up worse than before. And also hostile to the West.

The corrupt gov't aspect has been an underlying issue. I was meaning to say that the rising food costs set the rage off.



JB, the oil companies do not make huge profit margins. They sell A LOT of oil and that translates into large profits, but the cost of oil is being driven up by the liquidity being injected by the Fed Reserve and other central banks. Oil, as of now, is traded in US Dollars (for the most part) and when you have more dollars chasing the same amount of goods, the price goes up. Unfortunately, those "more dollars" have not created wage inflation to help with rising costs of goods.

 

[houstonscott]

Glad I got my BMW 335d. 42mpg on freeway, 425ft pounds of torque, it'll put your one ton truck to shame. Slay's mustang GT's with a tap of peddle.

HS

 

[schoolsout]

I've had a VW Jetta TDI for about 4 years...45mpg

I'm assuming the "d" is for diesel? Haven't seen many of those around here (at least I haven't noticed them)

 

[richamor]

. Oil, as of now, is traded in US Dollars

And get ready for a HUGE price increase if that changes, as some countries have proposed.

 

[schoolsout]

And get ready for a HUGE price increase if that changes, as some countries have proposed.

there will be a new "reserve currency" for the world that will not be USD only. The US Dollar will be included, but others will as well....and more than likely, some commodities and gold/silver.

I'm a gold bug and have been buying metals since '06 for this very reason. Oil, when priced in gold (stable currency) would not shock you. The fact that the US (and pretty much every other country/central bank) is trying as hard as they can to inflate their debts away is the reason (well, bailing out failures such as banks and other entities that took on too much leverage) we are seeing higher prices.

The Fed wants inflation when, in actuality, deflation is what the people need.

 

[Diamondpilot]

Road tax makes up a major part of the cost of fuel. Indiana has the 3rd highest tax in the country behind Hawaii and California. When you look at the price of fuel minus the tax other states are paying much more then we are. They are the ones really getting it stuck to them.

As for not buying gas on a certain day, it will simply not work. Sounds good in theory but it will not work. We need fuel too much. They have major reserves and will simply ride out the storm then raise the prices a few cents or more to offset the loss.

Chris

 

[richamor]

Interesting read about the dollar in regards to the oil trade.

7 Countries Considering Abandoning the US Dollar (and What It Means) Currency Trading.net

In all of the articles I read, the other currencies are mentioned as well as gold, but the dollar is not on the list. If the price of oil were in Euros, we'be be paying at least 39% or more, since the exchange rate is $1.39 to 1.

 

[schoolsout]

Our economy is too large to not be included. Most of the world hates us because we abuse our monetary system and export inflation to them. Whether they like it or not, the USD will have to be included in it (my opinion).
China has been maneuvering so that their currency can be used easier in settling transactions there and a few other places.

The US Dollar has a lot lower to go after the "boyz" get done with it. Plan accordingly!


richamor, I'm sure you'd like this site (I guess), if you haven't already heard of it, that is.
zerohedge.com

Good commentary about all things financial/political