Gas prices

de69cuda said
It's my opinion that I wouldn't be surprised if gas reaches the $5/gallon by next summer. Between the lack of new drilling in the Gulf because of the current administration as well as the Quantatative Easing (QE) that the Fed did a couple of months ago = effectively de-valuing the dollar worldwide. With the QE, the Fed effectively printed more money making the value of the US Dollar less around the world. The folks pricing oil still want to buy the same amount of stuff for the money they are getting for their crude, so the price is going up, and will continue. I'm thinking that the price of everything will be going up soon as the cost of fuel rises = inflation. With Interest Rates as low as they are, I'm not sure what the Fed or Congress can do to keep inflation at bay. Some analyst's are saying they are expecting hyper-inflation because of the QE - we'll have to wait and see.

I couldn't have said it any better..... An and economist and a business owner this is the clearest I have seen it put. The combination of lack of US drilling for domestic oil and US printing and flooding the market with US money. 2 things have happened:

Not drilling -- Consumption has not stopped, thus we are handcuffed to buying oil from the abroad on the world market.

Printing more money = Devaluing the dollar -- Oil on the world market is bought and sold in US dollars, As the dollar drops in value it drives up the cost of oil. Thus the price of gas.

Gas is currently $3.15 a gallon for 87 octane in Pittsburgh. I predict a small drop below $3.00 in january/feb/march. then back over to around $3.50+ for the summer, and close out 2011 with gas solidly above $3.60/gal to stay.

No matter how bad we think it is now, inflation is coming. the fed can not hold it off any longer with low interest rates, high unemployment rates, and high taxes....its coming!!! brace yourself when it does.