In Illinois:
Today: $4.25 Costco - 90% of other station prices are around $4.39.
One Month Ago $3.60
High price Chicago metro 4.81 earlier today. Past several days its been trending about a nickel up per day at the low cost place which is Costco.
I think the psychological impact will be far quicker to grab, and bite into consumer goods buying. Fewer trips and even lower gas usage. Gas usage has already been in major decline for past several years in the US. Same with vehicle miles.
If metro's like Chicago settle somewhere around $4.75 to $4.90 this summer, and a few peak areas like CA spots stay over $5.20 through the summer, Benny is going to have a real hard time figuring out how to keep putting the peddle the metal on the printing press without causing a sudden and massive flame out of the economy. surcharges galore are creeping back quickly this time, and the prior pressures of maintaining flat prices and eating costs are being overwhelmed by the ability to stay in business. there are no reserves to weather this storm again, by either the consumer or many retailers, and small businesses. large coprs may be able with stockpiles of cash, but the little guy is going to get creamed.
too far behind the curve to raise rates and too fragile of an economy to raise rates.
left with one choice: keep rates flat, and let things spiral out of control, take their course. Could have a real parabolic upswing in stocks while this plays out, even more of a trajectory than we've had recently. It'll appear the economy is doing well for a short period more. But the signs we are seeing are not a result of organic growth, but of price growth. Gold doesn't look too shabby right now as a hedge.
Gas prices rising far faster this time, with low cost per barrel
Started by
nimblebear
, Mar 22 2012 09:18 PM
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