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And It's Not Even Summer: Gas Jumps 19 Cents In Two Weeks, Less Than 10% Below All Time High

Tyler Durden's picture




 

According to the latest Lundberg survey the average price for a gallon of gasoline in the United States has moved closer to $4, jumping more than 19 cents since mid-March to a level less than 10 percent below its all-time high. And it's not even peak driving season, which typically sees a seasonal jump of at least 15-20% from early spring levels. Per Reuters: " The Lundberg Survey said the national average price of self-serve, regular unleaded gas was $3.765 on Friday, up from $3.573 on March 18, and up 91.3 cents from $2.852 a year ago. Prices in several western U.S. cities are already above $4 per gallon, led by San Francisco at $4.13. Chicago was close behind at $4.11 a gallon, the survey said." What is not surprising is that demand saturation is starting to set in, meaning refinery margins are now going through the window: " The national average would have been higher had refiners and retailers not resisted passing on rising crude oil prices as customers grow less willing to pay what it takes to fill their gas tanks, analyst Trilby Lundberg said in an interview. "Demand has been falling at these prices," she said."

From Reuters:

The record high average pump price is $4.112 set on July 11, 2008. Lundberg tracks roughly 2,500 gas stations.

Crude oil prices are higher amid unrest in Libya and elsewhere in the Middle East, as well as a weaker U.S. dollar, which on Friday fell to a 15-month low against the euro.

A falling dollar often lifts dollar-denominated commodities such as oil. This is because some investors use commodities as an inflation hedge, and consumers who use other currencies may view the commodities as cheap and buy more, driving up prices.

U.S. crude <CLc1> settled Friday at $112.79 per barrel, after earlier reaching its highest intraday price since September 2008. ICE Brent crude <LCOc1> settled at $126.65 per barrel, the highest settlement since July 2008.

Even if crude prices do not change, Lundberg said pump prices could rise another dime per gallon as earlier increases work their way into the retail market.

"One gets a little bit depressed talking about it, but we are getting closer" to a $4 per gallon average, though "there is no telling" when or whether it will occur, Lundberg said.

The average price for diesel fuel did top $4 per gallon for the first time since 2008, rising to $4.09 from $3.978 three weeks earlier, and $3.056 a year ago, according to the Lundberg survey, which is done in Camarillo, California.

The lowest average price for a gallon of unleaded gas in the 48 contiguous states was in Tucson, Arizona, at $3.41, Lundberg said. San Francisco had the highest price.

What is certain is that with a several day pass thru lag between crude and
gas prices, following WTI hitting $113 overnight, it is guaranteed that
this week we will see a $3.80+ handle in gas prices. How that will impact the economy is pretty much obvious to everyone except the 3-4 algos and few NYU POMO interns who are left trading the centrally planned capital markets.

 

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Mon, 04/11/2011 - 07:40 | 1157102 Long-John-Silver
Long-John-Silver's picture

The second crash is underway. Amerika shuts down @ $4 gasoline.

Mon, 04/11/2011 - 07:53 | 1157116 ZeroPower
ZeroPower's picture

Or perhaps smart minds will finally be putting their scientific capabilities to use i.e. non-reliance on oil for getting around.

Mon, 04/11/2011 - 08:01 | 1157129 Long-John-Silver
Long-John-Silver's picture

The laws of thermodynamics can not be legislated. "Energy Density" Google it. There is no such thing as a 100 mpg carburetor or an alternative to oil and coal. Without them we go back to Horses and Mules.

Mon, 04/11/2011 - 08:02 | 1157136 Thomas
Thomas's picture

Do we get wenches?

Mon, 04/11/2011 - 08:13 | 1157161 Long-John-Silver
Long-John-Silver's picture

Only if you have Gold.

Mon, 04/11/2011 - 08:23 | 1157195 cossack55
cossack55's picture

Lets do it.  However, all my buried PMs fell into a new crevass yesterday. Still, lets do it.

Mon, 04/11/2011 - 10:52 | 1157738 Ahmeexnal
Ahmeexnal's picture

Now's a good time to learn how to ride a horse.

Long horsebreeders and mounting gear manufacturers!

Mon, 04/11/2011 - 12:03 | 1157973 cbxer55
cbxer55's picture

Horse riding ain't free, gotta feed the buggers.

And someones gotta do the poop scooping.

I recall years ago, when I use to do Friday and Saturday night cruising on Lancaster Blvd., the cops had switched from cars to horses for patrolling the streets. And they used to leave big steaming piles on the sidewalks in front of all the businesses. I tell you, they were not happy campers when confronted with big piles of horse shit early Monday morning! ;-)

The horses did not last long.

Mon, 04/11/2011 - 12:37 | 1158084 OutLookingIn
OutLookingIn's picture

Why not?

Free fertilizer for the veggie garden!

Energy in - energy out!

Mon, 04/11/2011 - 09:19 | 1157323 Zina
Zina's picture

Oh, I see... It's "impossible" to create a technology with higher energy density than oil.

So, humanity is doomed, since oil won't last forever. Nor coal.

The fossil fuel era was just an "accident" in the human history, just a "gift" that humanity received to "quick start" the industrial revolution, but it won't last for more than 3 centuries.

Mon, 04/11/2011 - 09:38 | 1157410 Chump
Chump's picture

If some grand new technology or energy source isn't created/discovered/whatever before oil becomes prohibitively costly (in terms of energy input) to suck out of the ground, then humanity as we know it is certainly doomed.

Human life as it currently passes on this planet is not possible without the black stuff.  That's just the way it is, and we are all going to be made painfully aware of that fact when the forced withdrawal starts in earnest.

Mon, 04/11/2011 - 09:18 | 1157327 Mad Max
Mad Max's picture

Is there a natural law that personal transportation has to weigh over 3000lbs, be made of steel and seat five people?

The US approach to transportation is blind to any alternatives.  And we built most of the human landscape around this dumb approach.

Mon, 04/11/2011 - 09:39 | 1157408 aerojet
aerojet's picture

This is the problem I see everywhere--what you see and what you experience has everything to do with big government setting rules and regulations in order to be a kingmaker.  Everyone in the Boomer generation believes this clever lie and *that* is why the US is failing to make any true progress anywhere.  I acknowledge that there are certain physical limitations to automotive design, but cars are what they are today because of the NHTSA and lobbying, not technology.  We want a technological future, not some bullshit fascist one.

Mon, 04/11/2011 - 09:43 | 1157423 nkktwotwozero
nkktwotwozero's picture

>And we built most of the human landscape around this brilliant approach.

FTFY

---

I like money.

 

Mon, 04/11/2011 - 11:05 | 1157734 sethstorm
sethstorm's picture

As far as the US is concerned, yes.  As a US citizen who drives a 3600lb, long-lasting car from General Motors, I have no apologies for the efforts made against the golfcart companies.  What I do resent is any purposeful action (or lack of action) to drive oil up.

If you want to get people to use alternative fuels in their cars, perhaps you should try a a familiar package; stop trying to cram horse-pills down their throat with all the transplant manufacturers. 

 

Not everyone likes to have countries where one class of people get their own cars, while the rest go in golfcarts. 

Mon, 04/11/2011 - 11:43 | 1157908 FreedomGuy
FreedomGuy's picture

I agree with you and one of my cars is a Mini Cooper. I used to have a large SUV because I pulled a camper drove over rocky mountain roads, etc. People pulled horses, hay, etc. in my area...plus boats and rec equipment. I don't believe San Fran and NY should be the arbiters. Let fuel seek its own unmanipulated price. In my city, now there is light rail. People will adapt at different fuel costs and also just the difficulty of moving around. People don't train/subway in and through NY just because of fuel prices. It's also because of traffic and population density.

People, driving habits and energy supplies will all adapt quite nicely based on price inputs from the market. The best thing is actually to leave it alone and let it work itself out. I don't want German and British priced fuel (about $8/gallon) because of government tax add-ons for our good.

Mon, 04/11/2011 - 16:04 | 1158833 Mad Max
Mad Max's picture

What if all we do is tax gasoline enough to pay for the portion of our defense budget (roughly 50%) attributable to our self-anointed status as the world's oil policeman?

We'd probably have $8 gas right there.

Mon, 04/11/2011 - 16:43 | 1159016 FreedomGuy
FreedomGuy's picture

I'm good with that as long as we tax their gas, not ours. Let's change their price inputs. We can call it "protection money". Wait a minute, someone else uses that phrase...

Mon, 04/11/2011 - 11:03 | 1157774 Ahmeexnal
Ahmeexnal's picture

They can seat up to five people, yet upwards of 80% of circulating vehicles carry only the driver.

Mon, 04/11/2011 - 11:42 | 1157915 FreedomGuy
FreedomGuy's picture

That's our choice. Plus, we don't have traffic laws and patterns that are conducive to scooters.

Mon, 04/11/2011 - 09:35 | 1157394 aerojet
aerojet's picture

Butanol has nearly the same energy density as gasoline.  I guess you didn't Google quite enough. 

Mon, 04/11/2011 - 12:10 | 1157997 malek
malek's picture

Every time someone brings up the laws of thermodynamics for reasoning on everyday practical issues, you know the person is talking garbage.

Mon, 04/11/2011 - 08:13 | 1157167 trav7777
trav7777's picture

ROTFL...if I had a nickel for every time a nonsmart person said that.

As if because you can imagine it, they should march out and "solve it."  Thanks for doin the hard part for us lol.

Smart minds are going to drub you on EROI and thermodynamics but you'll ignore them because they don't state a happy outcome

Mon, 04/11/2011 - 08:35 | 1157223 Snidley Whipsnae
Snidley Whipsnae's picture

Gas over $4.00 in many stations in central Fl for mid grade

Mon, 04/11/2011 - 08:47 | 1157257 blindfaith
blindfaith's picture

Yes, and with the great state of Florida's new " elect me and I will make jobs" Republican governor (who has laid off or fired over 6,000 in a scant few months), I say...ain't those minimum wage jobs, Florida is so famous for, going to be hard to fill when the net take home pay is less than the cost of actually going to the job?  He did nix mass transit in favor of you figuring how to get to work on your own.... if you need a job.

Now, that is being patriotic, taking money out of your pocket to contribute to Florida's GDP, or GOP as the case may be.

Mon, 04/11/2011 - 09:09 | 1157305 overmedicatedun...
overmedicatedundersexed's picture

blind (n) faith..get the fuc* off zh..with your clap trap socialist biased soros spin..if you cannot see there are not 2 parties in America you are blind to the scam ..get lost or grow up.

Mon, 04/11/2011 - 09:16 | 1157320 r101958
r101958's picture

Well said overmedicated. Also, the 'high speed rail' plan was not about mass transit for people to get to work. It was about boondoggle and letting D.C. get its claws into Florida.

Mon, 04/11/2011 - 11:48 | 1157928 Rick Masters
Rick Masters's picture

So a comment in favor of mass transit in the face of $200 oil is socialist cause he criticizes the GOP? Did you take you meds today? In any event, Florida sucks.

Mon, 04/11/2011 - 18:29 | 1159402 James
James's picture

What them commies don't tell you.......................................................

Floridas light rail was to go from Tampa to Orlando twice daily.

Taxpayer paid for Amtrak currently runs twice daily from Tampa to Orlando.

HMMMMMM...........................................................................

Mon, 04/11/2011 - 09:41 | 1157415 aerojet
aerojet's picture

Well, the monorail at Disney World, which was so cool in the 1980s, now feels trite and dated.  And if you want economic recovery in FL, laying off government employees is a very good place to start.

Mon, 04/11/2011 - 10:52 | 1157725 sethstorm
sethstorm's picture

Only if there is a private sector to receive them.

Otherwise, it's just envy.

Mon, 04/11/2011 - 11:25 | 1157842 hedgeless_horseman
hedgeless_horseman's picture

Maybe just a little bit of envy, but mostly anger is my guess.

...the average federal worker earns $101,628 in total compensation -- including wages and benefits-- compared with $60,000 for the average private employee. 
   
http://finance.yahoo.com/news/FACT-CHECK-Are-federal-apf-3113687231.html?x=0

Mon, 04/11/2011 - 14:00 | 1158107 gcjblack
gcjblack's picture

So far, gasoline pump prices haven't kept up with increases in crude oil prices. 

http://www.GasBuddy.com/gb_retail_price_chart.aspx?city1=USA Average&city2=California&city3=NewYorkState&crude=y&tme=12&units=us

Soon, the pump prices will be increasing again.  If you look at crude oil prices as ozt Gold per barrel, there has been virtually no inflation in crude oil prices for some time.

http://www.incrediblecharts.com/images/png_images/gold-oil_ratio_30yrs.png

  In reality, the price of oil fluctuates and inflates due to the instability in the US$.  With the higher costs in Saudi Arabia, and a deflating US$ (due to the Bernacke Put), the American people (and the rest of the world) is in a squeeze play.  Costs in Saudi Arabia are going up (causing oil price inflation), the US$ is loosing ground against other world currencies (causing oil price inflation), and Bernacke is doing QE and printing (causing oil price inflation, as US$ is worth less & less).  This results in oil price hyper-inflation.

Mon, 04/11/2011 - 07:44 | 1157105 Oh regional Indian
Oh regional Indian's picture

Think global act local is going to get a whole new meaning in the months to come. When you don't drive 50 miles for a lark and a sandwich, you tend to do somethign within walking distance. We'll see a permanent change in spending patters as this unfolds (Oil $200 is inevitable this year).

But the thing to watch will be airline/flying costs go through the roof and demand destruction there. That will be change to behold. No more leisure travel, all the two-rist dependent economies......tch!

ORI

http://aadivaahan.wordpress.com/2011/04/09/crashing-stars-they-were-but-chimeras/

Mon, 04/11/2011 - 07:54 | 1157119 ZeroPower
ZeroPower's picture

While i agree higher (though $200 this year is inconceivable) oil is inevitable, obamao has no doubt some tricks up his sleeve, namely tapping the US own oil reserves to stabilize markets.

We know the recession starts all over (or continues, whatever you want to believe) again at ~$150, and in a looming election year, i bet the admin will do everything in their power to ensure "All is Alright". Hey, maybe that'll be the boss's hip new slogan. You know, to get the minority vote and such.

Mon, 04/11/2011 - 08:08 | 1157147 duo
duo's picture

Tapping the SPR or rebalancing the GSCI are tricks with a short half-life.  Barry had better save those for right before the election.  Use them too soon, and the blowback will be worse than doing nothing.

Mon, 04/11/2011 - 08:13 | 1157170 Long-John-Silver
Long-John-Silver's picture

The oil reserve is for war. Obama will be starting a 4th war and will need it.

Mon, 04/11/2011 - 09:09 | 1157311 EscapeKey
EscapeKey's picture

It's also worth noting a large part of the "reserve" actually counts what's inside the pipelines at any time.

Mon, 04/11/2011 - 09:18 | 1157324 r101958
r101958's picture

'Will be starting' should be 'has started'.

Mon, 04/11/2011 - 09:44 | 1157427 aerojet
aerojet's picture

Right, and Wikipedia backs you up on that fact, but Bush II used it for politcal purposes, so there you go.  Everything is political, or another way of saying that is:  Nothing the government can do is outside the realm of the political, so beware!

Mon, 04/11/2011 - 08:17 | 1157172 trav7777
trav7777's picture

"stabilize" the markets?  They are stable.

Demand will wane...it needs to because it's got to catch up to waning supply

Mon, 04/11/2011 - 09:22 | 1157336 r101958
r101958's picture

yes, demand will wane, and with it the 'recovering' economy. 'Growth' is predicated on ever growing supplies of cheap energy. That is not to be had anymore.

Mon, 04/11/2011 - 10:23 | 1157589 Oh regional Indian
Oh regional Indian's picture

Precisely...

Plus, cheap/free energy is the Midas's curse of our time..

http://aadivaahan.wordpress.com/2010/09/03/the-curse-of-free-energy/

ORI

Mon, 04/11/2011 - 08:17 | 1157184 Chump
Chump's picture

You keep using that word.  I do not think it means what you think it means.

Mon, 04/11/2011 - 09:21 | 1157332 Mad Max
Mad Max's picture

Inconceivable!

Mon, 04/11/2011 - 08:21 | 1157191 Oh regional Indian
Oh regional Indian's picture

Oil is well! ;-)

ORI

Mon, 04/11/2011 - 07:56 | 1157123 ibjamming
ibjamming's picture

I used to drive farther than that...for a wonderful shredded beef burrito...no more.  I also got 7% back then too...no more.  Yup, high energy prices mean hard times ahead.

 

 

Mon, 04/11/2011 - 10:04 | 1157524 MachoMan
MachoMan's picture

Last time this happened, everyone thought all the airlines were going the way of the dodo and that air travel would be prohibitively expensive for the masses...  I see no reason this time will be different...  eventually, the higher oil prices will be prolonged enough for them to finally keel over.

Mon, 04/11/2011 - 11:10 | 1157801 Ahmeexnal
Ahmeexnal's picture

Are you saying airlines are in better shape now?

Many have indeed gone the way of the dodo, and those remaining are flying zombies.

Mon, 04/11/2011 - 11:26 | 1157853 MachoMan
MachoMan's picture

No, I'm saying that whatever hasn't finished them off stands to do so again...  That we've failed to prohibit this danger...  (not that it's possible).

Seems like last time they were saved in part due to booking fuel prices well in advance...  anyone got the skinny on whether they did so again?  If it's a temporary flare up, then maybe this gives them a temporary reprieve...  However, I fail to see any ability to outlast these structural issues...

Mon, 04/11/2011 - 10:32 | 1157630 John Wilmot
John Wilmot's picture

Stick a fork in suburbia, it's done.

As Gerald Celente has said, the end of cheap energy could result in a cultural renaissance: the collapse of the vulgar, mass, hyper-efficient (with cheap energy), global economy - to be replaced by local economies. Less emphasis on quantity, more on quality.

 

 

.....That's what might happen if the plan wasn't to herd us into massive cities, and rewild the rest of the country, and manage every aspect of our soon-to-be pathetic lives as serfs. : (

Mon, 04/11/2011 - 07:48 | 1157107 oh_bama
oh_bama's picture

Too negative!!

 

Energy and food and some other things have high volatility!! So they go UP and DOWN..

INFLATION EXPECTATIONS ARE STILL TOO LOW

QE3 IS A MUST!!

Mon, 04/11/2011 - 07:48 | 1157110 EscapeKey
EscapeKey's picture

We're fighting deflation at present; there's definitely no inflation... the limited issues in commodity inflation are entirely outweighed by other factors... the commodity based inflation is temporary, and should present no problem with regards to the continuing recovery.

Compare these to Bernanke's lies with regards to the housing bubble, and you know where this is going.

Mon, 04/11/2011 - 08:01 | 1157127 topcallingtroll
topcallingtroll's picture

M

many of you are guilty of underestimating the intelligence and determination of the fed and bernanke. Tylers hubris on this issue of his vastly superior knowledge as opposed to ben bernanke is.also bery obvious. We shall see who is.correct.

To ne.contemptuous of your enemy's skill and intelligence has been the.downfall of many.

Mon, 04/11/2011 - 08:43 | 1157241 EscapeKey
EscapeKey's picture

You seem to be under the mistaken belief that Bernanke is fighting us, the 1% of the population wide awake, and aware of what is going on.

He is not. He is fighting the 99% who could care less about anything but who gets into the Superbowl.

Mon, 04/11/2011 - 08:57 | 1157278 blindfaith
blindfaith's picture

yep, got that right.

 

Just wait until all the rest of the unemployment checks stop.  Take cover, is my suggestion for our great leaders including the great mr. ben.

All these people wanting to get out, now that spring is here, and having no money and high gas...and zero prospects.

Mon, 04/11/2011 - 09:50 | 1157465 Chump
Chump's picture

Yo, our "leaders" have the means to a.) get the fuck out of dodge if they need to and b.) blow the fucking shit out of any and all comers.  If we peons start to feel froggy then a drone or two will take the bounce right out.

"Take cover" is for us, the peons, as we tear each other apart when the checks stop coming and the grocery store shelves are empty.  Or were you thinking we'd all join up, train for a couple days on small unit tactics, and then march on Washington?  Nope, sorry, but just say "Zerohedge" and I'll have you a warm meal and a smoke.

Mon, 04/11/2011 - 09:24 | 1157344 r101958
r101958's picture

...and who wins American Idolatry.

Mon, 04/11/2011 - 09:45 | 1157444 aerojet
aerojet's picture

I would point out that you can be "wide awake" but still not smart enough to understand economics.  I think Bernanke is actually right about commodities and it is you folks on here, the powerless, who are wrong.

Mon, 04/11/2011 - 09:56 | 1157482 EscapeKey
EscapeKey's picture

yawn

Mon, 04/11/2011 - 10:01 | 1157498 Chump
Chump's picture

I would point out that you can "think Bernanke is actually right" but still not be smart enough to understand economics.  I think the obvious effects of printing trillions upon trillions of dollars are pretty awful and you're merely a blithering idiot.

Mon, 04/11/2011 - 10:47 | 1157708 John Wilmot
John Wilmot's picture

Ben's right about commodities eh? How's that? The part about there being no signficant inflation or the part about the Fed not causing the nonexistent inflation with the debt monetization its not doing?

I'm sure Ben is more intelligent than most of us here. His intelligence is not in question, however, only his motives. Too many interpret statements like 'subprime is contained' or one of his other gems as signs of ignorance. They are not. He knew subprime wasn't contained. Just like he knows he's monetizing debt and causing inflation now. He lies to serve an agenda. It seems easier for most people to believe that the government is incompetent than that it has ulterior motives. That's not the more logical position, but it is the more comfortable one. ; )

 

 

Mon, 04/11/2011 - 11:36 | 1157886 hedgeless_horseman
hedgeless_horseman's picture

He lies to serve an agenda.

You mean that the Chairman of the Federal Reserve Board lies about his actions, big actions that enrich his cohorts while impoverishing millions?  Something like this?

“We’re not going to monetize the debt,” Mr. Bernanke declared flatly...

  

                                         -February 25, 2010

http://www.washingtontimes.com/news/2010/feb/25/bernanke-delivers-warning-on-us-debt/

Mon, 04/11/2011 - 07:51 | 1157117 MassDecep
MassDecep's picture

Everything going as planned. Eliminated the middle class. Hey watch more American Idol, and the Biggest Loser is .......you!

Mon, 04/11/2011 - 07:53 | 1157118 topcallingtroll
topcallingtroll's picture

The cure for high prices is high prices.

Party on!

The market will sort it all out if we let it.

Mon, 04/11/2011 - 07:56 | 1157120 baconator3000
baconator3000's picture

take the bus

Mon, 04/11/2011 - 08:05 | 1157138 quasimodo
quasimodo's picture

Great idea!

If you live in the fucking city and have access to a bus.

Mon, 04/11/2011 - 09:22 | 1157340 Mad Max
Mad Max's picture

Take your horse, then.

Mon, 04/11/2011 - 08:03 | 1157139 Long-John-Silver
Long-John-Silver's picture

98% of America has no public transportation option. Only in large cities such as New York will you catch a bus.

Mon, 04/11/2011 - 08:14 | 1157171 baconator3000
baconator3000's picture

well true.im doing my part in demand destruction. suppose there are other alternatives. 98%? Sounds like bullshit... most midsize cities have bus service. Hell i used to live in Racine Wisconsin, they had 24 hour bus service

Mon, 04/11/2011 - 10:25 | 1157607 earnyermoney
earnyermoney's picture

public transportation sux. Ride a bicycle. Think of the savings on health care if everyone had to ride a bicycle to and from work.

Mon, 04/11/2011 - 12:18 | 1158025 cbxer55
cbxer55's picture

HA! Think we all want to go back to smelling like oxen again? Just you try riding a bike 10 miles each way to a place you work, that has no shower facilities, on a 95 degree + day with 40 or 50 % or higher humidity. By the time you get there, you'll look like a sewer rat, and smell worse.

I have two motorcycles, either of which gets 45+ mpg. One gets closer to 60. Now that the weather is actually nice enough, I'll be parking the Lightning, and riding again. The Lightning is a premium only vehicle which gets 10 mpg on a good day. Since my wife and I do not have any credit cards, and only have a house and one vehicle payment, I anticipate no problems keeping the Lightning filled up, even at $5.00 + gas.

But there will be a lot of other things we'll not be buying because of these prices.

Mon, 04/11/2011 - 09:24 | 1157345 Mad Max
Mad Max's picture

I also call bullshit on the 98% claim.  Hell, roughly 3% of the US population lives in New York City!

I live in a rural area outside a small town, not even a city, in farm country.  I have access to public transportation here.  I'm in a state that does a poor job of public transportation, and still at least 30% of the state's population lives near a bus route.  Do some research before you claim that no public transportation is available.

Mon, 04/11/2011 - 09:28 | 1157361 blunderdog
blunderdog's picture

98% by territory, more like 40% by population.

But lots of town/city folks would never dream of using the crappy mass transit that is available in their area.

That'll change.

Mon, 04/11/2011 - 09:46 | 1157447 baconator3000
baconator3000's picture

exactly. There is a stigma created over the years that you NEED A CAR OMG...which is complete bullshit and draws parallel to NEEDiNG AN IPHONE OMG. People are lazy. Dont wanna walk. Owning a Car is not neccessary in any city over 50,000 people with bus service I promise you. Just do the research, find the route and transfers. Oh boohoo you have to get up a half an hour early before work or have to actually strike up a conversation with another human being.

 

 

 

Mon, 04/11/2011 - 10:13 | 1157565 MachoMan
MachoMan's picture

I agree with the iPhone assessment, not so much with cars...  for whatever reason, a large part of the american identity is tied to our personal vehicles...  it allows us to pretend to be unique snowflakes...  aside from being incredibly convenient.  The problem, of course, is that the bill eventually comes due.

PS, if people wanted to strike up conversations with others, they'd have done it by now... 

Mon, 04/11/2011 - 11:15 | 1157819 blunderdog
blunderdog's picture

There's really no problem or conflict here.  Convenience costs.

A 10lb bag of potatoes is what...$3?  And makes a LOT of mashed potatoes.  A 6oz box of instant mashed potatoes is what, $4?  And makes a LITTLE BIT of mashed potatoes.

So pay to play.  If you want the convenience of rolling around everywhere in a car, what's the problem with it costing a few hundred bucks a month?

Shit, gives folks an excuse to turn off their fuckin' cable teevee.

Mon, 04/11/2011 - 11:17 | 1157826 Ahmeexnal
Ahmeexnal's picture

Everyone knows it has to do with more than just an "identity".

Cars make up for what is lacking under peoples pants/bras.

 

 

Mon, 04/11/2011 - 07:57 | 1157122 MassDecep
MassDecep's picture

Hey escapekey "We're fighting deflation at present; there's definitely no inflation..."

One question.

1. What country are you living in?

In the US, my Grocery bill is up about 11-16% from approx. 6 months ago.

 

Mon, 04/11/2011 - 08:03 | 1157131 topcallingtroll
topcallingtroll's picture

I think escape key was.ridiculing that belief not supporting it.

Mon, 04/11/2011 - 08:18 | 1157187 trav7777
trav7777's picture

I preach to the shorties about the hidden inflation in food and how the mfrs mess with the container sizes and sure enough, this week, Odwalla reduced their tasty fruit beverage containers from 15oz to 12 while maintaining the same apparent tag price.

20% of the content, poof.  Things like this demonstrate what inflation is like nothing else can.

Mon, 04/11/2011 - 09:01 | 1157289 blindfaith
blindfaith's picture

Try instant mashed potatoes:

November 25th, 2010...9 ounces

December 25th, 2010...7.2 ounces

April 4th, 2011, ..........5.5 ounces

Same Box, same price... Thanks Betty for the magic.

Mon, 04/11/2011 - 09:47 | 1157454 aerojet
aerojet's picture

And there's probably a message on the box proclaiming "New, Lower Fat!"

Mon, 04/11/2011 - 11:48 | 1157930 blunderdog
blunderdog's picture

An old 50s Mad Magazine eyeball kick--the menu at a fast-food stand:

Burger     -- $0.10
  w/bun    -- $0.15
  w/meat  -- $1.25

 

Mon, 04/11/2011 - 07:59 | 1157124 squexx
squexx's picture

I'm paying nearly $8/gallon here in South Korea. Quit bitching!

Mon, 04/11/2011 - 08:06 | 1157145 Long-John-Silver
Long-John-Silver's picture

Place a map of South Korea over a map of the USA......

Mon, 04/11/2011 - 08:10 | 1157152 MonsterBox
MonsterBox's picture

i'd personally love to see these SUVs & 13 mpg Pickups pay $8 a gallon.  maybe there'd be a little less "haulin' ass" up & down the road.

Just what is your big fuck'n hurry, asshole?

Mon, 04/11/2011 - 08:26 | 1157204 cossack55
cossack55's picture

Heard the local coin store received some ASEs. Can't be late.

Mon, 04/11/2011 - 08:29 | 1157208 gkm
gkm's picture

LOL, have to agree.  I`m not a slow driver by any means nor do I drive a slow car - so when I constantly get blown away at lights and even just cruising by soccer mom vans and asshat pickups, I know the price is still too low.  

Hope today brings a decent pull back in USO to reload what I sold friday.

Mon, 04/11/2011 - 12:46 | 1158106 Chump
Chump's picture

That's funny cause I have the opposite problem.  Giant ass trucks poking along while clueless hippies with a death wish pretend they're saving gas as they weave their Prius in and out of traffic at 85 MPH.

Mon, 04/11/2011 - 09:09 | 1157309 blindfaith
blindfaith's picture

Dear squexx, you say "

I'm paying nearly $8/gallon here in South Korea. Quit bitching!"

 

How sweet.  Perhaps you would like us poor American slobs and whiners to stop paying our military to protect your pathetic ass every day.

Maybe we Americans should wake up and stop buying your cars, and other assorted crap since YOUR country STILL does NOT allow USA Imports after 50 years of supporting you ( which I think is enough...GO LEARN TO STAND ON YOUR OWN DAMN TWO FEET AND STOP DEPENDING ON THE USA TO SUPPORT YOU!!!!).

See what we get.... you show no gratitide for all the tax dollars you have gotten from us. You get our hids, we get you fucking attitude.

Mon, 04/11/2011 - 16:46 | 1159032 FreedomGuy
FreedomGuy's picture

Well, if you're an American soldier protecting S. Korea then it won't last forever and you will appreciate the price of our gas when you get back. If you are a S. Korean then you need to ask why it is taxed so highly. It might not be a bad deal if your income/personal taxes are lower and your highway support is fully priced into your fuel. Mini Cooper makes a great little car that'll get you over 40mpg! Scooters are cool, too!

Mon, 04/11/2011 - 18:54 | 1159483 James
James's picture

squexx says -

I'm paying nearly $8/gallon here in South Korea. Quit bitching!

 

 

Curious - What is your overall level of taxation?

Mon, 04/11/2011 - 08:03 | 1157132 Weimar Ben Bernanke
Weimar Ben Bernanke's picture

Wait till the House of Mud is overthrowed. Gas will skyrocket and will lead to an oil shock at home. This will be the ultimate black swan. The question is when.

Mon, 04/11/2011 - 08:06 | 1157144 duo
duo's picture

The normalcy bias of the sheeple has them believeing that gas will drop back down to $2, usually after the US starts a war somewhere.  People will complain for a few months, but when September rolls around and gas is still $4-5, people will re-think the 12 MPG SUV they bought with cash-4-clunkers.

Long motor scooters (70 mpg and up).

Mon, 04/11/2011 - 08:11 | 1157157 Long-John-Silver
Long-John-Silver's picture

A friend of mine ordered a 30' container full of 125cc street legal motorcycles from Taiwan and sold out in 2 weeks @ 150% profit. He has ordered 2 more 40' containers plus parts and tools for servicing them.

Mon, 04/11/2011 - 08:21 | 1157192 Chump
Chump's picture

ROFL.  Great idea but just wait until the local "authorities" get wind of it!

Mon, 04/11/2011 - 08:46 | 1157252 duo
duo's picture

Taiwan knows their scooters.

http://dlpoptics.com/mopeds.jpg

Mon, 04/11/2011 - 08:11 | 1157154 johnQpublic
johnQpublic's picture

got backpacks for the dogs...for going for grocerys....saddles next

Mon, 04/11/2011 - 08:10 | 1157160 writingsonthewall
writingsonthewall's picture

Complete the following:

Boom - Bust - Boom - Bust - Boom.....

Repeat after me.

"There is no consequence to QE, There is no consequence to QE, There is no consequence to QE, There is no consequence to QE, There is no consequence to QE"

Right - on with blaming someone else - who shall we try this time?

My all time favourite is "global economic winds" - in an effort to please all those 'god botherers' so they can convince themselves this is punishment for sin - and not a crisis of their own making through greed (which I guess is about the same thing really)

Crikey did I just prove God's existence?

Mon, 04/11/2011 - 08:14 | 1157165 cranky-old-geezer
cranky-old-geezer's picture

Demand has been falling at these prices.

Elasticity is such a bitch. 

Mon, 04/11/2011 - 08:18 | 1157182 Long-John-Silver
Long-John-Silver's picture

People will be spending more to get to work then they are paid. At that point it's over just like 2008.

Mon, 04/11/2011 - 11:44 | 1157606 MachoMan
MachoMan's picture

Exactly.  It basically forces a mass stampede into cities for working age folks...  the commute is economically impractical.  Restaurants fall off a cliff...  tax revenues fall off a cliff...  and there she goes...  there she goes again...  people are ultimately drawn away from the only sustainable life for them (decrease in standard of living) in search of fortune and glory (or even sustenance if they're not particularly skilled).

Mon, 04/11/2011 - 08:19 | 1157183 Lone Mad Minute...
Lone Mad Minute Medic's picture

Don't worry, the government will subsidize our fuel with gas stamps. 43 million foods stamps and 43 million gas stamps. It's all good! The bernank will just print up mo money.

Mon, 04/11/2011 - 08:33 | 1157210 ziggy59
ziggy59's picture

the hawmptons/shelter island/sahg harbor are never included in these surveys. its been above  above 4.00 for weeks

Mon, 04/11/2011 - 08:39 | 1157227 Seasmoke
Seasmoke's picture

with all the $8 per hour jobs now , $4 a gallon (and throw in lunch) is going to mean some people are going to spend more to fiill up than they make for the entire day .....maybe people will finally wake up and stop working and that will help bring down the whole thing, even if involuntarily 

Mon, 04/11/2011 - 08:49 | 1157260 cabernet
cabernet's picture

Filling the tank is becoming painful. Not too long ago it cost me $30 to fill my car. Now it takes $50 and sometimes more if I am on "E". I recommend filling up whenever you get below a half tank. You never know when the revolution spreads to Saudi or there is a pinch at the Straights of Hormuz.

http://www.TheAngryGrapes.Com

Mon, 04/11/2011 - 10:44 | 1157688 Diogenes
Diogenes's picture

I used to be able to fill up for $50 ten years ago. Yesterday I filled my Windstar minivan and it cost $101.87. Good thing it wasn't empty.

(Think twice before you think of moving to Canada).

Mon, 04/11/2011 - 09:01 | 1157290 Rodent Freikorps
Rodent Freikorps's picture

The Bureau of Land Management says Utah has an estimated 12 to 19 billion barrels of oil buried in its tar sands, mostly in the eastern part of the state, though not all of that would be accessible.

http://news.yahoo.com/s/ap/us_oil_sands

 

Mon, 04/11/2011 - 09:31 | 1157378 r101958
r101958's picture

And to get to it they would need to create an environmental catastrophy. Not to mention the EROEI makes it very expensive to extract. Also, what would be the daily production rate for those billions of barrels? Another little factoid that I rarily hear when I read about these wonderful 'fixes' to the current situation; The world burns about 33 billion barrels a year. The U.S. uses 20 million a day. So 12-19 billion in supposed 'reserves' is not really impressive.

Mon, 04/11/2011 - 09:33 | 1157388 r101958
r101958's picture

A 250 billion barrel find that can produce 5 million barrels a day. Now that would be something.......

Mon, 04/11/2011 - 09:47 | 1157439 Marty Rothbard
Marty Rothbard's picture

As the price of transportation rises, people will change the way they live their lives.  When I was a child, the price of transportation, not to mention food, was much higher than it is now.  Yes gasoline was 25.9 cents a gallon, but then gold was $35 per troy ounce, of course it was illegal for US citizens to own bullion.  Land of the free my ass!  With gold at $1450 that is equivilent to 10.73 a gallon, and 20 miles per gallon was outrageously high.  People lived close to work.  Often they walked, or took the bus.  My mother drove 7 miles to the school where she taught, through pretty much zero traffic, and people thought that was a long way to drive to work.  After 100,000 miles your engine was shot, and needed a full rebuild.  No one lived 20 miles from town, unless they owned a farm.  Little villages were built around mills, where the workers lived, sometimes within larger cities, complete with a little downtowns, full of shops, and the offices of professionals.

As the price of transportation reverts to the mean, you're going to see more people leaving the suburbs, and exurbs.  High rise development will  become popular again.  Using mass transit (hopefully not public transportation), will be seen as the smart thing to do.  There will be more one income families, since it will become harder to find two well paying jobs within the new shorter commuting distance.  As a result, there will be fewer services targeted at familes with working wives.  Less daycare, eating out, laundry service, dog walking, cleaning service, repair services of all kinds, and speeding tickets.  You'll see more home cooked meals, vegetable gardens, jobs within walking distance, carpools for people with predictable schedules, busses, bicycles used as transportation, not recreation, do it yourself manuals, and nearby family vacations.

   You have been warned.  Sell your McMansion(oops too late), your gas guzzler, and your service industry business.  Load up on depressed innercity real estate preferably empty, precious metals, and oil stocks.  Once the price of gasoline hits $4.50 buy a lot of out of the money put options on nonGoldman banks, manufacturers of SUV parts, builders of suburban homes, trucking companies, and restaurant chains.  Also buy anything that can be easily shipped to china.

 

 

Mon, 04/11/2011 - 10:02 | 1157449 baconator3000
baconator3000's picture

exactly. There is a stigma created over the years that you NEED A CAR OMG...which is complete bullshit and draws parallel to NEEDiNG AN IPHONE OMG. People are lazy. Dont wanna walk. Owning a Car is not neccessary in any city over 50,000 people with bus service I promise you. Just do the research, find the route and transfers. Oh boohoo you have to get up a half an hour early before work or have to actually strike up a conversation with another human being. You will save thousands of dollars in car payments, insurance, and gas. You wont regret it i promise. A 30 day unlimited bus pass for these parts costs about 75 cents a day. 

 

If you 'need' a car just get some piece for 500 dollars and park it for when you absolutely need it. 

Hey look I just solved our energy 'crisis' !

Mon, 04/11/2011 - 10:11 | 1157544 belsebub
belsebub's picture

Does anyone know the gasoline/petrol-share of the CPI basket (the real one, not the Dudley one)?

Mon, 04/11/2011 - 10:10 | 1157549 waldocktrades
waldocktrades's picture

Thank God for ethanol. HA! 40% of this year's crop is allocated to an inferior product at horribly inflated prices. Oh well. at least China will be able to feed their growing hog population.

http://blog.commodityandderivativeadv.com/2011/04/08/food-or-fuel.aspx

 

Mon, 04/11/2011 - 10:17 | 1157568 Lone Mad Minute...
Lone Mad Minute Medic's picture

It's best to just steal a car and drop it off a block away from where you have to be. Then steal another for the return trip.

Mon, 04/11/2011 - 10:44 | 1157701 FunkyOldGeezer
FunkyOldGeezer's picture

Really, the USA needs to grow up and accept that even $4.00 gasoline is waaaay too cheap in this day and age.

Until the USA adopts a far less wasteful energy policy and encourages the population to start driving smaller, much more economical cars, I haven't an ounce of sympathy for you.

At the same time, you could join the rest of the planet and adopt the widespread use of diesel cars too. Californian politicians in particular need their collective heads shoved somewhere where the sun doesn't shine. 

Or maybe, you should help the zero emissions car become a practical reality, by investing into it big time. They're butt ugly at the moment, but that can be worked on.

http://www.mdi.lu/english/

Mon, 04/11/2011 - 11:24 | 1157830 FunkyOldGeezer
FunkyOldGeezer's picture

'73/'74 should have been a wake up call, 2008/9 should have fully woken up the USA, but did those events have any effect on the US mentality? I doubt it. Whenever I've engaged in the 'you should be driving smaller cars debate' all I've ever had back are the same lame excuses...big country, long distances, comfort, big engine, less fatigue, I need a five liter V8 etc etc.

A modern 1.6 litre turbo diesel kicks out plenty of horse power, has very high torque and will cruise at 80 mph doing  2,600 rpm or thereabouts, is good for at least 200,000 miles AND still returns about 55 mpg all day, every day. There was a time when they were viewed as smelly, noisy and slow, but not anymore. Even lots of perfectly respectable , middle class women drive diesels in Europe now. Modern diesel engines are so good, that many mid-sized vans, weighing a good two - two and a half tons fully laden, only have a 1.9 litre diesel powerplant.

Compare that to your big cars with their big engines.

Mon, 04/11/2011 - 11:28 | 1157855 FunkyOldGeezer
FunkyOldGeezer's picture

And they bitch about $4.00 gasoline. They just want their cake and to eat it too.

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