Thursday, April 14, 2011

One exclamation or two?



I am probably an outlier, but I think gas never hits 5 bucks a gallon. Excepting spikes for hurricanes. You will see a complete collapse of use. 4.50 was max pain in 2008. We aren't any richer than we were in 2008.

Diesel is already approaching 5 bucks a gallon.

Of course - there are still a few countries we aren't having a conflict with. So I guess it's any ones game.

5 comments:

Davis Freeberg said...

We'll hit $5 in less than a year and $10 by 2020. The Fed has already increased the money supply, employment is starting to tighten, wage inflation happens next.

she said: said...

Hmmm. Interesting element.

How can you tell wage inflation - over just raises? I mean wages (at least in the valley) have stayed flat or down for three years.

So wage inflation (it would seem to me) would only show up if it was larger than what you would have been paid if you'd have gotten the normal schedule of raises. Most people in tech didn't get any raises for two years.

We disagree on employment starting to tighten. I see layoffs starting to accelerate in government. Those people should dive for contracts. House prices are starting to soften again prompting property tax downgrades and less revenue for the government.

Davis Freeberg said...

Only took 3 days to hit $5, $10 will be next.

http://content.usatoday.com/communities/driveon/post/2011/04/some-gas-stations-are-starting-to-charge-5-a-gallon/1

I'm not sure how you delineate between pay raises and wage inflation, but the two are more or less the same. I guess if food, gas, etc keep going up and wages start to go up with them then we'll have wage inflation. If unemployment stays high then we'll just have good old fashioned inflation instead. Did you see the news that S&P put the US on credit watch? It's because we're dilluting the dollar to save property prices. Hasn't really worked so far, unless you're a bank.

Steve Berven said...

So, my question, where is all the screaming and veins-pop-out-on-forehead when the Evil Presidente Boosh was in office and gas prices were at $3.50 a gallon?

A strange lack of froth.

she said: said...

That is because everyone is going to get Obamabucks to offset the evil oil companies raping your pocket. Or something like that.