Date registered: Sep 2004
Vehicle: 83 Astral Silver 280 SL
Location: Planet Houston
Mentioned: 0 Post(s)
Quoted: 8 Post(s)
RE: Oil crosses $60 a barrel
You are essentially correct - in fact consumption has risen by 3% in the US during the current rise in gas prices - the beginning of an inflation spiral driven by psychology that says I need to burn more of the stuff because it is going to be even more expensive in the future, something that happened to this country before in the hyperinflation days of the late 60s. It is the main reason we will see $100 a barrel oil, because we can discount that government action to reverse this psychology, like mandating SUV milage standards for instance, will happen given the politics of the current admin. That means market forces alone will work its will on the public. I don't think it will take a shortage, there is a price point somewhere where this will break. When it costs over $100 to fill the gas tank in your SUV, then you will take real notice.
Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.
-President Barack Obama, 1st Inaugural address