Posted on 02/08/2016 10:41:41 PM PST by george76
Gas prices in Chicago are still falling, but the price at the pump is having a negative impact on the economy.
...
as the cost to fill up your tank goes down, could this also be a sign -- the economy is tanking? Commodities trader Scott Shellady thinks so.
"It's bad for everybody. We are going to lose one-fifth of the jobs we created in 2008," said Shellady.
And he doesn't expect a market rebound anytime soon. So if you were hoping to cash in your 401K or IRA and retire in the next year, Shellady says, rethink your plans.
"The stock market is going to take a long time to recover. We need something new to boost the economy," Shellady said.
(Excerpt) Read more at abc7chicago.com ...
If gas prices were plummeting due to a decrease in demand that would justify pessimism. But my impression is that they are dropping due to increase in supply, which would make this article a farce. Am I wrong?
Petroleum is only one segment of a healthy economy. Countries (and terrorist groups) who rely entirely on the proceeds from oil sales stand the most to lose.
Of course the economy is tanking. But try to explain this to the idiots who brag about saving $2 on a tank of gas.
Any possibility that this is the trial balloon instead of the truth...
Stock bubble v. Oil glut
$1.29 in central IN today.
One problem with low gas prices. It will encourage stupid local governments to add even more taxes to gas.
Lack if business and required transportation.
Yeah, it’s demand. Other supply has caused some, and now Iran is going to be jumping in, I think with the oil they export.
Yep - and idiots who vote FOR it.
I paid $2.79 here in California. Would not know what to do if the price was $1.29. Wow.
The economy is collapsing as seen by the Baltic Dry index, M2 money supply, the labor force participation rate , etc..
The price of oil is down because of over production globally. When the US refineries go into re-tooling to get ready for summer blends, as mandated by the government, they will buy less oil temporarily, too.
Demand is dropping in China. China's bursting bubble will drag us down economically. (The dollar will be a safe haven, which will buffer the US somewhat.)
And yes, supply is also high. But why? It's because demand dropped, causing the OPEC countries to scramble and break their cartel, which means violating the cartel's production limitations. Increased production causes an increase in supply.
It's also true that technical advances like fracking have added to supply, helping to spark that feedback loop even more.
Many people are losing good paying jobs , plus more existing businesses are closing than new ones starting, as the economy is collapsing.
>> Of course the economy is tanking. But try to explain this to the idiots who brag about saving $2 on a tank of gas.
California taxes on a gallon of gas
State excise tax 39.5 cents per gallon
Federal excise tax 18.4 cents per gallon
10 cents per gallon for cap and trade fee
State/Local Sales Tax 7.5% to 10% depending on area
So that’s 67.9 cents per gallon tax, before the 7.5% to 10% sales tax.
I live in California, also.
That would force many oil production & related : transportation, construction ... businesses to also close, lay off their employees, default on their bank loans, and cause some banks, restaurants, retail stores ... to downsize or close, too.
>> encourage stupid governments to add even more taxes to gas. [ Barry already promoted that idea ]
and diesel taxes that truckers pay when hauling food , etc. resulting in higher food & other prices.
The free market has ups and downs, subject to the whims of the marketplace.
Hong Kong is a little island state, previously British, now Chinese. They have no oil, mines, or timber. Yet they have a thriving economy. Why?
Free enterprise, lower government regulations / overhead, etc.
So you can figure in California, with the current price of gas, about $1.00 per gallon is tax.
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