Skip O'Neill – Liberty for All

Ron Paul for A New Direction

What recovery?

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Experts are expecting average gas prices to rise to $5 dollars per gallon across the country. With  tension rising in the Middle East and China’s demand for energy  growing, the possibility that Americans will soon pay $5 a gallon for  gas is steadily becoming reality, experts said. The national average  Wednesday was $3.73 a gallon, according to AAA’s Daily Fuel Gauge  Report. For some readers, $5 dollars per gallon doesn’t seem that far off considering the average price in California’s average is $4.32. Common sense reasoning would predict a collapse in demand as gas rises past $5 dollars per gallon effectively crushing the cost of oil per barrel. It’s inflation that will  keep the prices high.
Even in the positive light, the Fed continues to shine on the forecasts that are coming out, Bernanke even conceded that gas prices rising are likely to slow the growth potential of the economy, which most likely means depression if he’s willing to call it a slowdown.
This week the European Central Bank will throw a lot more money at the  very painful problem of the eurozone’s debt and banking crisis. The ECB on Wednesday has offered banks, for the second time, an unlimited volume of cheap three-year loans. This will likely offer some form of stability for the short-term, but will probably buy less time than anyone would have hoped.

Written by opinionoregon

March 2, 2012 at 7:09 pm

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