Sunday, December 7, 2008

The Certified Organic Environmentally Sustainable Union Approved Grapes Of Wrath

December, 2008.

Well we've found out right enough what conditions would result in far lower crude oil prices. Viz a worldwide financial and economic meltdown. Gasoline prices have passed $1.50 per gallon on the way down to who knows where. Funny how few are complaining about speculators these days and the Big Three auto execs have replaced the evil greedy Big Oil execs as congressional whipping boys. Progressive legislators may not exhibit much acumen in the economic arena but they effect superb efficiency in the production of scapegoats.

Crude prices are down by about 70% and gasoline has followed the trend which puts both at four year lows. Even panicky OPEC production cuts have seemed to have little effect rather giving the lie to assertions they have some sort of oligarchical control over prices. Sales of overpriced electric vehicles have tanked even worse than conventional auto sales proving that such marginally useful eviro-toys are no more immune to financial vicissitudes than anything else.

Suffice to say that when the economy starts to show even a glimmer of recovery the price of fuel will escalate which means a couple of quarters of sub $1.50 gas prices with ratcheting starting back up in say summer 2009. No bets though. On anything. Prognostication in matters economic is worse than a mug's game. It's just plain stupid. Equally stupid is economic planning but it will be entertaining, in a putrid sort of way, to watch the Obamanation's attempts to prove that all 100% of several thousand such previous failed efforts were merely mishandled anomalies. Meanwhile to those who think that the business cycle can be maintained at a permanent peak by goverment fiat I suggest you stock up on peanut butter and mac&cheese. I wonder how your Prius will look with all your possessions lashed onto it? At least it'll be a lot more comfy than the Joad's rattletrap Hudson.

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