Five Dollar Per Gallon Gasoline Inevitable in 2012 - He Said

It's often been said that high fuel prices are the death of an economy, and are akin to high interest rates set by the Federal Reserve. When the prices of fuel go up, generally due to supply and demand curves and high oil barrel prices it is like in overall tax on the economy. This is because fuel is used for everything, and everyone has to use fuel to get around and do things. All of the food you buy at the grocery store has to be delivered, and it takes fuel to do that. Not to mention it takes you more fuel to get there, and therefore you have less money in your pocket to buy the food.

A local global economic analyst, Morris R Beschloss wrote an interesting article in our local paper on March 16, 2012 titled; "$5 a Gallon Gasoline is a Certainty" and he explains what's going on and he's serious about his prediction. The same day there was an article in Reuters titled "Gasoline lifts inflation, dents confidence," and so between the two articles without even reading between the lines we have all the information we need on cause and effect and what lies ahead.

Because we are in an election year, many people are talking about how it will affect the election. But there is more to life than elections, we have a country to run, and we have an economy which is healing from its wounds. We don't need high oil prices right now, and it is unfortunate that many of the reasons that we have these higher prices are due to poor mistakes made by our leadership, and our push towards alternative energy, and away from fossil fuels due to the global warming alarmists claiming worldwide catastrophe if we don't.

Therefore, there is a lot of politics mixed up in all this, but that doesn't make it any easier to swallow. These high gas prices leave a bad taste in the mouth of consumers, businesses, and voters. Some believe we are running out of the easy oil, and therefore the price of oil will be going up anyway, along with the fact that India, China, and several other emerging markets are using more and more oil each year. And then there is the artificial regulatory burden, and the taxes placed on gasoline by budget stricken government agencies.

All of this is driving the cost up, not to mention the likelihood of a war with Iran, and it is preventing our economy from getting back off the ground to a reasonable level. And so there's no doubt that some of the top global analysts in economics are predicting fuel prices to go even higher. Indeed I hope you will please consider all this and think on.

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