Lets see Obama blame this on Bush
Dollar hits new multimonth low vs euro, pound, yen
I said repeatedly this was going to happen. So many people still haven't figured out why gas prices have shot up so high so quickly. The news media is trying to spin the real reason for the sharp increase in oil and gas prices. They're blaming the increase merely on the start of the summer driving season. If it could only be explained away as easy as that. Here's the problem with their explanation. The demand for oil has remained extremely soft, and oil and gas stock inventories are still high. In other words, speculation on the increase of the use of oil and gas couldn't make the prices of both energy commodities shoot up as fast as they have within the last three months. I posted the real reason for the increase as the headline. The dollar has hit a multi month low against all of the major currencies. Commodities prices tend to follow in the opposite direction to the increase and decrease of the dollar.
As the dollar has been been sinking in value, oil prices have been rapidly increasing. Gasoline is of course made from oil, so the price of gasoline has increased right along with the price of a barrel of oil. Some refineries are operating at eighty five percent capacity, because the demand isn't there to warrant them running at a full one hundred percent. People also forgot or didn't even know that OPEC cut production of oil output by several million barrels late last year. That decreased the supply of oil on the world market. This combination spells a wicked hurting on our economy in the very near future. The first bomb that dropped was when the dollar started to fall. The second bomb that dropped was with the cutting of oil production from OPEC. The most destructive bomb has yet to be dropped. That bomb will be when demand truly does pick up for gasoline. Gas prices truly could reach five dollars a gallon. That would be like a nuclear bomb exploding on the U.S economy. Growth is the only way any country can emerge from a recession, but it looks like ours have been placed on quick sand. The more we try to move in regards to economic recovery, the more we are going to sink because of it. We have Mr. Hope&Change to thank for that. You all might want to whip out those government subsidized tire gauges and imagine they will ease the pain to come.