More on gas prices...

[Ill Mitch]

The other night on the news here in Wichita showed a ton of people PAWNING stuff just to afford gas money! One guy pawned a lawn mower, and that's what he does for a living- mows lawns. Other people were pawning wheels and rims (some rims looked pretty nice too), jewelery, and all sorts of stuff. That's messed up. Frickin' black-hearted oil companies. Bunch of scumbags.

The big issue is the U.S. economy. It is based on cheap fuels to get things from here to there. The cheap fuel is all but gone and will more than likey never come down. Of course, these increased costs are passed on to the consumer. When they get to high, the consumer ain't gonna buy.

Already, my wife and I have cancelled vacation plans because that money is now being earmarked for fuel for the cars just so we can go to work. I will still get the time off, but it will be spent at home.
That means the money I was going to spend while on vacation is not going anywhere, except to the fuel pumps. This is happening all over the country.

Wanna go to the movies? Nope...gotta put gas in the car. Wanna eat out for dinner? Ain't gonna happen. Gotta put gas in the car.
Wanna buy the choice cut-O-meat at the store? Nah, I will have to get the leftovers from the Butcher so I can put gas in my car just to get to work.

Combined, my wife and I do pretty good. We don't make six figures, but are well above the poverty line. It's not a struggle (yet), but only because we gave up most of the fun stuff.

 

[ultrarunner]

The big issue is the U.S. economy. It is based on cheap fuels to get things from here to there. The cheap fuel is all but gone and will more than likey never come down. Of course, these increased costs are passed on to the consumer. When they get to high, the consumer ain't gonna buy.

Already, my wife and I have cancelled vacation plans because that money is now being earmarked for fuel for the cars just so we can go to work. I will still get the time off, but it will be spent at home.
That means the money I was going to spend while on vacation is not going anywhere, except to the fuel pumps. This is happening all over the country.

Wanna go to the movies? Nope...gotta put gas in the car. Wanna eat out for dinner? Ain't gonna happen. Gotta put gas in the car.
Wanna buy the choice cut-O-meat at the store? Nah, I will have to get the leftovers from the Butcher so I can put gas in my car just to get to work.

Combined, my wife and I do pretty good. We don't make six figures, but are well above the poverty line. It's not a struggle (yet), but only because we gave up most of the fun stuff.

Geez, you've made some pretty drastic changes for a few pennies a gallon.

Here is my real life example.

I drive 22,000 miles a year, and at my average MPG I consume 956 gallons. There is a whole whopping 950 dollar swing between 2 bucks a gallon and 3 bucks a gallon. My wife drives about the same.

So, there's a 36 bucks a week swing between 2 and 3 bucks a gallon. For other households, I bet it's a TON less since the likelyhook they are driving 45,000 miles year is not as high. I could be wrong though.

We're not Billy Gates, but we do ok also, and I can tell you one damm thing, we 'aint cancelling $hit over 36 bucks a week!

Take a hosehold that drives on average 21000 miles a year driving a couple of $hit boxes that get 30 MPG. They have a combined 13 buck a week increase using the same hypothetical prices.

I just don't see the american public getting all worked up about it.

Personally, I'm steady as she goes. If gas hits 6 bucks a gallon, MAYBE I'll consider a 45 MPG $hit box, but prly not.

 

[jetflyer]

The problem will be when gas hits $6.00/gallon oil will probably be well over $100/barrel.

Inflation will start to take off.

The price to move goods across the country will increase and the cost will eventually be passed onto the consumer.

The price of food is very dependent on fertilizers and pesticides from fossil fuels right now. Food prices will go up.

Flamethrower fuel will go up in price and people will have to sacrifice and flamethrow less That was for FN FAL.....

Heating OIL will over double in cost and people will have trouble heating their homes.

Oh and PLASTIC prices will go up which we use for almost everything.

Also Chemicals, Tires, asphault, etc. will rise in cost.

Like Ill Mitch was pointing out these rises in prices will take money from people's pockets and they'll eat out less. They'll take less vacations. They'll watch TV instead of going to the movies.

The economy will be affected and a slowing economy is what will make us use less oil as it becomes more scarce. If we can carpool, drive 55, build public transportation, and speed the alternatives production then the economy will not slow by as much.

The faster we begin the transition to a more sustainable existence, the better the economy will be in the future.

Jet

 

[Ill Mitch]

Geez, you've made some pretty drastic changes for a few pennies a gallon.

A few pennies? Where I am at, gas went up 14 cents overnight and then the following night went up another 7 cents. 21 cents per gallon in 48 hours. Right now is holding steady at $3.04 per gallon.

This equates to an extra $800 per year for me and my wife to go to work in the morning. In two days, my yearly gas expense went up by $800. May not be a lot to you (and if it isn't, can you hook a brutha up with the gig you got?) but it is to me.
As for Americans not sweating the increase, things are changing. Where I am at, I notice less cars on the road (more people taking mass transit). I do see less large vehicles (SUV's and trucks) being used as commute vehicles.
Hell, even the line at Starbucks is getting smaller in the mornings.

 

[jetflyer]

The poor and those people that don't have much money left at the end of the month will be the ones that have their lives most adversely and immediately impacted.

They'll be the ones selling grandpa's watch at the Pawn shop for a couple gallons of gas.

They'll be the ones wishing they could file bankruptcy but they can't because the Bankruptcy laws have changed.

They'll be the ones that will have their ADJUSTABLE RATE MORTGAGES readjust this year and next and having to spend several more hundred per month on their home payments.

When the housing bubble pops and pops hard because of oil prices and the readjustment of the ARM Loans because of the Federal Reserve's increase in interest rates, the economy will be affected pretty hard from it and from the tax on the economy from high oil prices in my opinion.

Jet

 

[ukaviator]

Bio-Diesel

Any of you guys ever experimented with Bio-diesel?

My dad lives in the UK where gas is now $8.50 per gallon -- oh yes you heard me right, $8.50 per gallon!! (80% of which is tax, but thats not the point).

Point is, he is thoroughly pi$$ed of with it and decided to take matters into his own hands. He now owns a BMW Diesel that gets 600 miles per tank which he makes himself from Bio-diesel costing him $0.70c per gallon!!

The car runs smoother, quieter, and no black smoke on start up.

I had a go for fun, dont own a diesel car, so tried it in a diesel generator ... works a charm!
Might be something to consider if things keep going this way.

Noticed today gas prices in CA $4.30 per gallon -- ouch!

 

[CrimsonEclipse]

Come on Jet, we all know you have extra money for expensive fuel.

You're a pilot! You MUST be rich.

CE

I'm sorry....I'll let myself out.

 

[jetflyer]

LOL Crimson,

I'm young, but live WELL within my means.

I was about to buy a 250 hp 6 cylinder Nissan Altima SL for my wife last year when I learned about peak oil. We were also about to buy a house, and I have delayed that for a long, long time.

Instead we live in an apartment with two paid off cars. My wife only has an 18 mile roundtrip to work and we are investing like mad in gold, silver, energy and alternative energy. My returns have been amazing. I hope to become a millionaire off my knowledge.

So no I'm not rich yet but I hope to be Gotta love greed.....

Jet

 

[jetflyer]

UK,

I considered getting a diesel Jetta and trying it, but realized it would just be cheaper to keep my paid off gas guzzler. A lot of people are getting the vegetable oil from local restaurants and turning it into bio-diesel. Not a bad idea.

Jet

 

[MJG]

Excuse the slight thread drift here, but I find some irony in this discussion as it relates to this season's plot on the TV show 24.

Basically without rehashing the whole thing, the premiss of this season is a plot by the President of the United States to use terrorists as a pawn to bend Russia over the table and grab control of most of their oil supplies. All this in an effort to ensure the the American public, who are also the voters who keep politicians in office, can afford to heat their homes in the winter. High energy prices will be blamed on the politicians so in order to save their own skins they have to secure more oil for the future.

Funny but maybe Hollywood, you know those bunch of hippy Liberals, are more in the know than we think. Of course it could just be that they have very creative writers for the show.

Back to the topic at hand, sorry again for the drift. As someone else already said, I'll let myself out.