Gas prices are highest ever for this time of year

Quote from nutmeg:

"Our goals should be to get gasoline to $2.50 or less so that working families can actually get to work and retired families can travel," Gingrich said at a campaign event in Los Angeles Thursday.
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Typical poltician, just telling people what they want to hear.
 
Quote from S2007S:

By the time the SPX gets to 1400 oil will be nearing 110+

Eventually something is going to break, you cannot have rising oil prices with a weak economy, however if BUBBLE ben bernanke unleashes QE 3 I would expect oil to go to $125+

But there is no inflation, right BUBBLE ben bernanke? Right?

:p :p :p :p :p
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You are wrong

You can definitely have weak US economy and strong Chinese & Indian economy and also high oil prices together which is what is going on right now. US consumes less than %20 of all oil in the world right now. Give it 10 years, the ratio will be less than %5 so the strength of US economy will be meaningless.
 
Quote from johnson100:

You are wrong

You can definitely have weak US economy and strong Chinese & Indian economy and also high oil prices together which is what is going on right now. US consumes less than %20 of all oil in the world right now. Give it 10 years, the ratio will be less than %5 so the strength of US economy will be meaningless.
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Exactly. As Asia rises, the US loses its power over the price of commodities, and can easily experience stagflation. Stagflation, properly understood, is the process of an economy losing ground to others. Central bank actions can only either accelerate or slow down the underlying process.
Anyway, I don't think that's necessarily inevitable over the long term for the US. Once the cost gets high enough, substitution and conservation will take over with a vengeance.
Medium term we do have a problem.
 
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