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Gas Prices, the Economy, and Political BS

We spent the weekend in Virginia, and as we were driving in the Metro Washington DC area, I thought to myself “how is it that the economy is so bad”? I thought even more about it after reading this editorial (thank you, media, for riling everyone up).

Despite gas prices of close to $4.00 per gallon, I-395 going in and out of DC was bumper to bumper at 3:00 Saturday afternoon, and on I-66 and I-270, traffic was heavy at 11am Sunday morning.

Jackie went shopping in Leesburg, VA on Saturday, and the outlets were packed with people with handfuls of shopping bags.

Here at home, in semi-rural Pennsylvania, I don’t notice a decrease in traffic, although the local news reports an increase in out of gas calls to AAA.

Sure, high gas prices are crimping budgets, but people seem to be adjusting. And yet our local US Rep seems to think that taxing the oil companies’ “windfall profits” is the answer to high fuel prices (of course, he’s up for re-election this year), while others think that suing Saudi Arabia is the answer.

Yes, gas prices are high, but part of the blame is that the dollar is much weaker than it had been.  Add to that the fact that the environmentalists have effectively blocked most major domestic oil drilling, and you have a recipe for high fuel prices (despite predicted reserves in the BILLIONS just within US borders). Ironically, the politicians call for us to “reduce our dependance on foreign oil” , yet block attempts at domestic drilling.  As I have in my email tagline, “a nation of sheep will beget a government of wolves”.  When will everyone wake up?

I’ve also become aware of the alarmists always telling us that oil is a finite resource. Back in the 70’s, they said that there are “only X number of barrels estimated to remain”, and yet since then, these numbers CLIMB, rather than fall. Sure, a lot of that has to do with new technologies, as well as deeper/more hard to get oil becoming viable as prices go higher, but is oil really finite, or is it a renewable resource? No one nows the answer, but it seems to point to the fact that the latter may be true.

George Will has an informative column today. Did you know that while US companies are not allowed to drill offshore of Florida, China is drilling 60 miles from Florida under the auspices of Cuba?  How is it that China can access oil fields off of our coast (although they are in international waters), while we can’t? Ask the politicians….

  1. kandylini
    June 5, 2008 at 11:43 am

    “Yes, gas prices are high, but part of the blame is that the dollar is much weaker than it had been.” Yet, you hardly hear anything about that at all. I seriously doubt the oil companies will be taxed either; that’s a lot of hoopla so the average Joe can be hoodwinked into thinking politicians are doing something about the problem.

    Yesterday at Whole Foods, I noticed the price of one of my favorite salamis went up four dollars a pound. Some of the other fancy deli meats were twenty bucks a pound. People are adjusting for now, but I don’t think we’ve hit bottom by a long shot.

  2. pstarr999
    June 5, 2008 at 11:53 am

    You mean you don’t want Big Daddy Government Boss to take care of all your needs?!? Just sit back, relax, and let the bureaucrats take care of everything!

  3. June 5, 2008 at 2:52 pm

    Time will tell where the bottom will be. We are starting to see price adjustments as a result of both the fallen dollar and the increase in fuel prices, not to mention the use of corn for fuel rather than for food. That to me is stupid, because for one, the energy needed to produce ethanol exceeds the useable energy produced, and two, why would you tie a food product to 2 important things in our lives (fuel and food)? If there is something that happens to the corn crop, we’re doubly screwed!

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