Gasoline Prices, Peak Oil & Economics 101

[valuesystem]

Peak oil is having interesting impacts on the prices for both oil and gasoline

Comments

[theal8r]

we're already seeing the effects -- both from fuel and from the fallout of subprime lending. Our economy is in big trouble -- economists have been predicting it for a couple of years, but now it is coming.

Michigan's economy is just a foretaste of what is to come over the entire nation.

[valuesystem]

You are right on the money with the subprime. This is truly a huge problem.

Yesterday I heard on NPR that 70% of Americans live paycheck to paycheck. Wow, that is an incredibly difficult spot to be in when gasoline prices rise, and jobs are lost.

I agree that Michigan is in the worst spot of all. Michigan is dependent on low gasoline prices in order to sell GM, Ford, and Chrysler light trucks and SUVs.

Michigan also depends on a lot of out-of-state dollars coming in for tourism. This again depends on the price level of gasoline.

Finally, our agriculture sectors depends on low fuel costs for both farming and distribution.

Michigan is the canary in the coal mine for the entire nation.

[theal8r]

rising fuel costs for farmers will result in rising food costs for consumers -- and it is, IMHO, the increase in simple, basic necessities which will truly bring the economy (and the social system itself) to its knees. People can always forgo movies and dining out, but once the basics are inaccessible you will have a real problem on your hands.

More wars, internal chaos and strife, increased crime as people steal just to sustain themselves and their families.

[theal8r]

btw -- I believe Herbert (Dune author) was writing about fuel. Spice (melange) = oil.