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Average February Gas Price At All Time High; Follows Record January Gasoline Costs

Tyler Durden's picture




 

Since everyone is buying everything that is not nailed down, preferably with both hands, on massive margin if possible, and since the global reflation trade is on full bore following trillions in cheap money dumped by central banks to prevent another re-recession within the broader Depressionary downtrend (offset for the time being only courtesy of $7 trillion in consolidated central bank funny money), it only makes sense that following record January gasoline prices, that February would see an all time high in gas as well (a detailed breakdown can be found at the AAA's website). But fear not: as the laws of supply and demand have also been usurped by the Fed, as has common sense and basic economics, both these data points indicate that Q1 GDP will also come at an all time high, because the entire economy is now purely a reflection of Apple, which as noted previously is almost bigger than the entire retail sector by market cap, and today hit an all time high as well. In fact, we are now seeing a record in new all time highs across the spectrum (if not volume - shhhh about volume), it means that even as IBM just laid off another 1,000 North American employees, that the economy has never been better either.

February gasoline costs:

and January:

Charts courtesy of John Lohman

 

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Tue, 02/28/2012 - 17:18 | 2205624 battle axe
battle axe's picture

Bring on IRAN!!!! Horses for everyone.

Tue, 02/28/2012 - 17:27 | 2205659 Conrad Murray
Conrad Murray's picture

Post this quote on every page you can, every social media account you have:

"Somehow we have to figure out how to boost the price of gasoline to the levels in Europe"($8+/gal) - Steven Chu, Obama's Energy Secretary

Steven Chu's Europe gas quote haunts President Obama - http://www.politico.com/news/stories/0212/73138.html

And a Conrad Murray Top Tip, find the lowest gas price near you: http://www.gasbuddy.com/

Tue, 02/28/2012 - 17:32 | 2205692 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Ohhhh, I can't wait for the record $5+ gas coming during the summer months. Thanks CBs everywhere.

Tue, 02/28/2012 - 17:33 | 2205697 Conrad Murray
Conrad Murray's picture

Bonus laughs: BoA + Chu = "Energy Secretary Steven Chu intervened last year to push forward a government loan guarantee for a $1.4 billion project backed by Bank of America Corp. to put solar panels on rooftops" - http://online.wsj.com/article/SB1000142405297020405980457722966133822182...

Tue, 02/28/2012 - 17:37 | 2205716 The Big Ching-aso
The Big Ching-aso's picture

 

 

"How many fingers, Winston?"

Tue, 02/28/2012 - 19:59 | 2206206 Acorn10012
Acorn10012's picture

"I want to see five...I really do."

Tue, 02/28/2012 - 17:52 | 2205789 Shocker
Shocker's picture

If this recovery picks up much more we will be around $6 a gallon.

Tue, 02/28/2012 - 19:52 | 2206183 The Big Ching-aso
The Big Ching-aso's picture

 

 

All aboard the $8/gal Chu-Chu train or you're gonna have to ride your bike to work.

Tue, 02/28/2012 - 17:37 | 2205715 scatterbrains
scatterbrains's picture

but it will be Iran's fault so no worries Oblahblah can still win with both Diebold and the banksters supporting him.

Tue, 02/28/2012 - 18:24 | 2205895 earleflorida
earleflorida's picture

"U.S. Voting Machines":  Sequoia and Diebold - Election System's and Software? ___ Voting machines in U.S. proven to have been extremely,... ? [10/26/04]

http://www.deepjournal.com/p/7/a/en/99.html

Tue, 02/28/2012 - 17:39 | 2205723 AbruptlyKawaii
AbruptlyKawaii's picture

keep the horses get me a gig at your job

Tue, 02/28/2012 - 19:05 | 2206065 Sid James
Sid James's picture

We are already paying $10 a gallon for diesel In the UK (£1.40 a litre).

Tue, 02/28/2012 - 17:34 | 2205700 Flakmeister
Flakmeister's picture

If we didn't have our collective heads up our asses when the last big Western finds, Prudhoe and the North Sea, were brought on-line we would be a lot better off now...

In the future, historians and people will gape in disbelief when they see how we burned our precious oil endowment...

Shelly's Ozymandius comes to mind....

Tue, 02/28/2012 - 18:00 | 2205820 DaveyJones
DaveyJones's picture

it's exactly like a substance addiction because it is a substance addiction. The tolerance and need keeps increasing, the rationale and mental health over buying, using and fighting over it deteriorates and the necessary steps to move beyond it get harder and harder to grasp 

Tue, 02/28/2012 - 18:13 | 2205878 tmosley
tmosley's picture

I think they will be a lot more amazed that we didn't burn our central bankers at the stake like they do.

http://www.tfmetalsreport.com/sites/default/files/users/u1246/oilpricing...

Tue, 02/28/2012 - 18:24 | 2205913 Flakmeister
Flakmeister's picture

Central or otherwise.... gotta agree

Check the last figure and get back to me...

http://www.theoildrum.com/node/8959

Tue, 02/28/2012 - 19:03 | 2206058 DaveyJones
DaveyJones's picture

Flak, you'll know this better than me, why do I keep recalling a lot of lectures saying 2012 / 13 is a shit hits the fan year?

Tue, 02/28/2012 - 19:09 | 2206083 tmosley
tmosley's picture

It's always a "few years" away.

Funny, I was scrolling through old TV programs on Netflix and found one of those old "end of the world" shows that used to lay every now and then.  I remembered watching it on TV when it first aired in 1993.  They concluded the world was going to end in 1995.

To think, we've all been living in a post-apocalyptic world for almost 20 years and didn't even know it.

Tue, 02/28/2012 - 19:25 | 2206129 Flakmeister
Flakmeister's picture

My you are on a roll with the strawmen tonight...

 

Tue, 02/28/2012 - 21:13 | 2206372 tmosley
tmosley's picture

How is that a strawman?  All predictions of unending and eternal doom and damnation turn out that way.  You don't like it?  Stop making them.

Tue, 02/28/2012 - 21:59 | 2206487 Flakmeister
Flakmeister's picture

It certainly is...

You set up the strawman of me being a doomster, all previous doomsters being wrong, ergo I am wrong...

Tue, 02/28/2012 - 22:24 | 2206548 tmosley
tmosley's picture

So what, you DON'T profess that peak oil will be the doom of any and all economic growth forever, amen?

Tue, 02/28/2012 - 23:01 | 2206665 Flakmeister
Flakmeister's picture

Now you play with semantics...

You really do miss the PM trolls....So much so that you are now a troll in your own right...

Ciao for niao... 

Tue, 02/28/2012 - 23:43 | 2206686 tmosley
tmosley's picture

I see, you don't even want to answer.  Clearly because you examined your truthful answer and realized that it just looks terrible to any observer, so you pretend to "take the high road" and bug out like a coward.

I will remember this.

Wed, 02/29/2012 - 00:02 | 2206844 Flakmeister
Flakmeister's picture

Continued from the other thread:

The difference between you and I is as follows: In technical matters, I make sure that I am informed about something before posting on it. This allows me to make factual statements and in the presence of a real expert to put myself in a position to ask pertinent questions...

Whereas you literally type bullshit as fast as you can, e.g. your classic "dissolve oil"...  

Your arguments rely on the use ad hominems and strawman...Sure, I use Ad Homs only after blowing away the Strawmen like the big bad wolf...

You are too intellectually lazy to at least inform yourself first in the most cursory of ways about 1/2 of the shit you type up... and it shows every time....

You are a clown and now you are a troll....

And you know what they say about trolls....

Wed, 02/29/2012 - 00:45 | 2206933 tmosley
tmosley's picture

What, they lie and pretend to be superior while ignoring the arguments of others in the thread?  Yes, that is what trolls do, troll.

Nice job on ignoring my arguments AGAIN.

Wed, 02/29/2012 - 00:49 | 2206939 Flakmeister
Wed, 02/29/2012 - 00:16 | 2206873 Flakmeister
Flakmeister's picture

Hey DJ...

They could hold this plateau for C+C a few more years... IIRC,  The DOD, the Bundeswehr and the "secret" U.K. Parliment report point to 2014-2015....

I think the IEA once made highly qualified noises about 2012-2013....

In any event the falloff will likely be slow at first but there is reason to believe it could accelerate...

A lot depends on what the real potential of Iraq is and how fast they ramp it up....

Wed, 02/29/2012 - 02:06 | 2207007 Pinto Currency
Pinto Currency's picture

 

Flak,

 

That may have been a plan.

 

The internet is the game changer and many, many are watching in stunned disbelief as our central (bank) planners destroy our currency and governments launch us on a string of wars inflaming the world. 

 

The markets are not as stupid as many central planners in their vanity may believe and it looks like they (the markets) aren't hanging around much longer.

 

Commodities and the stock market are going to replace the bond market.

Tue, 02/28/2012 - 22:05 | 2206495 Sizzurp
Sizzurp's picture

Interesting to see total liquids at an all time production high in Jan. , but as they pointed out, things are not always as they seem. When you look at rising population, declining net exports, and falling EROI, then the higher prices start to make more sense.  The fact that the central bankers are going bat shit crazy on the money printing doesn't hurt prices either.  The C&C number is the critcal one IMO, and that is a flat line since 2005. When C&C starts to fall, the EROI effects are going to start hitting hard on prices and economic growth, but I get the feeling nobody will understand why.

Tue, 02/28/2012 - 23:02 | 2206672 Flakmeister
Flakmeister's picture

Yes, that is what the graphs say...

Tue, 02/28/2012 - 23:41 | 2206779 DaveyJones
DaveyJones's picture

yup

Tue, 02/28/2012 - 17:34 | 2205705 Silver Bug
Silver Bug's picture

We ain't seen nothing yet... 

 

http://ericsprott.blogspot.com/

Tue, 02/28/2012 - 17:51 | 2205777 NotApplicable
NotApplicable's picture

How much do you get paid per post, and how much do you donate back to Tyler?

Tue, 02/28/2012 - 21:03 | 2206349 Iconoclast
Iconoclast's picture

Simple, add 85% taxes, it 'works' for us...we just love it..

Tue, 02/28/2012 - 17:41 | 2205731 JPM Hater001
JPM Hater001's picture

Very bullish for Bikes and Appalossa.

Tue, 02/28/2012 - 17:46 | 2205753 Translational Lift
Translational Lift's picture

Don't you at least have to be a High School graduate to be head of DOE??

Bunch a dumbfucks...........

Tue, 02/28/2012 - 17:48 | 2205764 Flakmeister
Flakmeister's picture

Yep... Didn't W. want to make Ken Lay (of Enron fame) his DOE guy?

Now that would have been great!

Tue, 02/28/2012 - 17:20 | 2205626 Christoph830
Christoph830's picture

"Temporary"

- B. Bernanke, 3-2-2011

Tue, 02/28/2012 - 17:23 | 2205656 tekhneek
tekhneek's picture

Everyone knows that it's because we're in a recovery and employment's picking back up.

See Cdad's post below.

Tue, 02/28/2012 - 17:25 | 2205661 Pinto Currency
Tue, 02/28/2012 - 17:27 | 2205673 BoNeSxxx
BoNeSxxx's picture

I picked a bad week to stop sniffing glue...

Tue, 02/28/2012 - 17:26 | 2205670 I think I need ...
I think I need to buy a gun's picture

GROWTH BITCHEZ

Tue, 02/28/2012 - 17:36 | 2205707 bdc63
bdc63's picture

"Temporary"

... and he'll probably try to say the same thing tomorrow ... he might even get away with it if Ron Paul isn't around to shut him down ...

 

Tue, 02/28/2012 - 17:18 | 2205627 YesWeKahn
YesWeKahn's picture

Just lay off every working person, lets run companies with Robots.

Tue, 02/28/2012 - 17:25 | 2205665 Moneyswirth
Moneyswirth's picture

Yes---maximum efficiency and 99.9% productivity...

Tue, 02/28/2012 - 17:30 | 2205687 DaveyJones
DaveyJones's picture

the other 99%

Tue, 02/28/2012 - 17:36 | 2205714 Jumbotron
Jumbotron's picture

LOL !

Soylent Green.....it's the other 99%

Tue, 02/28/2012 - 20:03 | 2206214 Acorn10012
Acorn10012's picture

Soylent Green...the other white meat!!!

Tue, 02/28/2012 - 23:04 | 2206680 Jumbotron
Jumbotron's picture

(In the voice of Sam Elliot)

Soylent Green....it's what's for dinner.

Tue, 02/28/2012 - 17:19 | 2205628 Moneyswirth
Moneyswirth's picture

Meh.  Who cares???

AAPL at all time high + DOW closes over 13,000 for the first TIME EVAH = BULL MARKET BABY!!

BACK UP THE TRUCK!  CRAMER SAYS BUY! BUY! BUY!

Tue, 02/28/2012 - 17:24 | 2205657 Flakmeister
Flakmeister's picture

Picked up a few Mar 135 SPY puts at the close....

Rolling the bones on the LTRO outcome...

Tue, 02/28/2012 - 17:32 | 2205696 GMadScientist
GMadScientist's picture

http://www.reuters.com/article/2012/02/28/italy-bonds-ltro-idUSL5E8DS7YR...

"Italian banks have issued nearly 40 billion euros of fresh state-backed bonds that they could use as collateral in exchange for cheap three-year European Central Bank loans at an auction on Wednesday,"

 

"Stay thirsty, my friends." - Most Interesting Man in the World

 

Tue, 02/28/2012 - 18:10 | 2205868 Moneyswirth
Moneyswirth's picture

And the dance continues...

Tue, 02/28/2012 - 17:19 | 2205629 Flakmeister
Flakmeister's picture

Yep... everything will be fine when the economy crashes again...

Be happy... Don't worry!

Tue, 02/28/2012 - 17:19 | 2205631 YesWeKahn
YesWeKahn's picture

One day, you can buy one Ipad with 1 gallon of gas.

Tue, 02/28/2012 - 17:22 | 2205648 tekhneek
tekhneek's picture

I almost bought an iPad 2 off a friend, then I sat down at my computer, and said nevermind.

Tue, 02/28/2012 - 17:36 | 2205712 GMadScientist
GMadScientist's picture

How many gallons will it cost to make an iPad3?

Tue, 02/28/2012 - 17:19 | 2205633 Cdad
Cdad's picture

And yet gasoline demand, as measured just two months ago, reveals an entirely different world, possibly having been outsourced to Pluto:

 

http://www.oftwominds.com/blogfeb12/gasoline-tanking02-12.html

Tue, 02/28/2012 - 17:28 | 2205678 Abitdodgie
Abitdodgie's picture

It does not matter how much oil America uses now ,what drives the price market is the developing world OPEC , India , China . Our market is shrinking because Americas economy is not recovering

Tue, 02/28/2012 - 17:51 | 2205776 Cdad
Cdad's picture

Americas economy is not recovering

That was my point.

Tue, 02/28/2012 - 17:36 | 2205711 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

The world is currently awash in oil as the majors pump away at manipulated, inflated prices. When they crash, it will be ugly. Bitchez!!!

Tue, 02/28/2012 - 17:43 | 2205735 scatterbrains
scatterbrains's picture

There's not enough energy to go around so let's split the population in half..  those that buy aapl and will be able to afford gas at $8 and then there's the rest of us who will be forced to stop using fuel having been left pennyless by the Banksters inflating away our savings.

Tue, 02/28/2012 - 17:52 | 2205781 Cdad
Cdad's picture

There is plenty of energy to go around...and demand is collapsing.  

Tue, 02/28/2012 - 17:20 | 2205634 moldygoat
moldygoat's picture

Gashole Bitches!

Tue, 02/28/2012 - 17:20 | 2205635 SmoothCoolSmoke
SmoothCoolSmoke's picture

Huh?   Dow 13K,  Woo-hoo! Woo-hoo! Woo-hoo!

Tue, 02/28/2012 - 17:20 | 2205638 Seasmoke
Seasmoke's picture

its going to be a long , hot , messy summer

Tue, 02/28/2012 - 20:35 | 2206287 I Got Worms
I Got Worms's picture

Here's a little Bananarama flashback for you, Sea. Seems appropriate.

http://www.youtube.com/watch?v=FGYNvx9lqDQ

 

Tue, 02/28/2012 - 17:21 | 2205641 tekhneek
tekhneek's picture

CAN YOU SMELLLLLLLLLLLLLLLLLLLLL THE RECOVERYYYYYYYYYYYYYYY!?!?

Tue, 02/28/2012 - 17:38 | 2205647 Flakmeister
Flakmeister's picture

  This just in... Chevron walking away from leases....

http://www.denverpost.com/business/ci_20061466

I guess all that kerogen in Colorado is not as easy to turn into oil as the cornucopians thought...

Yep... those damn enviromentalists are *stopping* development of these strategic resources.... My fucking ass they are....

Wasn't it supposed to be profitable by now??? What with WTI at $106....

-----

Edit: A couple of junks and no substantive reply... some bitter folks in living in denial I guess... 

Tue, 02/28/2012 - 23:06 | 2205737 Jumbotron
Jumbotron's picture

Yep... those damn enviromentalists are *stopping* development of these strategic resources...

 

Exactly right.  That's why we have developed these "green" methods of extracting oil and coal out of the ground such as......

this for oil......http://cdn.lightgalleries.net/4bd5ec0174be3/images/tar_sands_ex_-37-1.jp...

and this for coal.....http://media.herald-dispatch.com/blog/issues/uploaded_images/hnt1-55q5xn...

and this for fracking.......http://www.vanityfair.com/business/features/2010/06/fracking-in-pennsylv...

Anybody who in their right mind says that it's environmentalism that's stopping our energy exploration is full of shit.

 


Tue, 02/28/2012 - 17:49 | 2205768 DaveyJones
DaveyJones's picture
As they said, it's "tougher than pumping oil out of traditional wells"
Tue, 02/28/2012 - 18:01 | 2205828 whaleoil
whaleoil's picture

Drill, baby, Drill!!!

(sarc/)

Tue, 02/28/2012 - 18:11 | 2205872 Flakmeister
Flakmeister's picture

sarc\ was superfluous....   

Nobody here at the Hedge says that seriously anymore.... 

\sarc

Tue, 02/28/2012 - 18:18 | 2205891 tmosley
tmosley's picture

Boy, you sure are sure of yourself.  

Why isn't oil going up in terms of gold?

http://www.tfmetalsreport.com/sites/default/files/users/u1246/oilpricing...

Oil is not 0.05971 oz of gold.  Still quite a bit below the 50 year average.

Or did they use up all the gold too?

Tue, 02/28/2012 - 18:41 | 2205973 Flakmeister
Flakmeister's picture

Don't you have a PM troll to annoy elsewhere... 

Real men own gold, silver and oil...

Now run along... You are barking up the wrong tree...

 

Tue, 02/28/2012 - 18:48 | 2206004 tmosley
tmosley's picture

So you are saying you have no answer?

If you don't, then you MUST acknowledge that the run-up in oil prices has been caused by money printing, not peak oil.  

If you disagree, then you MUST provide an argument, or otherwise, acknowledge that you are just talking out of your ass, or simply asking people to disregard fact in favor of faith.

Tue, 02/28/2012 - 19:09 | 2206085 Flakmeister
Flakmeister's picture

Are you so naive to think that a major economic factor such as the price of oil is determined by only one factor?

Do you think that there might be a combination of factors?

Do you think, perhaps, that the money printing is keeping the neo-classical economy "alive" as a matter of speaking and that the excess liquidity is helping drive up the price of oil??

Do you understand the concept of Net Exports peaking in 2005?

Do you understand the energy content of liquid fuel supplies has been "flat" since 2005?

Finally, does it not compute with you that despite zero cost of capital and 2 trillion dollars (since 2004) thrown at the problem we have not been able to increase world supply of C+C...

No, I am not so naive to state that the rise in oil prices is only due to PO...

Finally, the 1998 bottom in gold was ~$250.... in oil it was ~$8... which one has risen more???

So take your disjointed poorly formed arguments and try to bait someone else...

Or would you like me to provide examples of your complete and utter ignorance of all matters pertaining to energy....

 

Tue, 02/28/2012 - 21:25 | 2206396 tmosley
tmosley's picture

Uhhh, yes.

Print like crazy, the price goes up.  Not exactly rocket science.  Yet here you are trying to claim that its teh pik ail.

You can talk about all these other factors all you want, but that fact is that if the rate of rise doesn't exceed that of gold, then the problem does not lie with too little production, it lies with too little consumption.

The reletive bottoms in dollar terms don't matter one lick.  It's the averages.  You can try to hide it all you want, but oil is cheaper than average right now in real terms.

There is nothing disjointed about my argument.  You can lie all you want, as that seems to be the only thing you death worshippers are really good at.  That won't change the fact that oil is not rising in real terms.

Tue, 02/28/2012 - 19:14 | 2206086 DaveyJones
DaveyJones's picture

and why can't it be run up by both?

Isn't that exactly what a fiat currency empire completely dependent on the stuff and drowning in a debt base economy would do?

doesn't that then accellerate the process?

As many wise people say, gold has a lot of catching up to do to truly reflect it's worth 

isn't it just as fair to point out that the price in gold does nothing to the supply and cost of getting oil out along with the EROI of what's left and its substitutes?

   

Tue, 02/28/2012 - 21:15 | 2206376 tmosley
tmosley's picture

If it was "both", then oil would be rising faster than gold.  It isn't.  They are rising at the same rate, which implies a common factor in their rise.

Gold does nothing to the supply, true.  But if supply were truely contracting, rather than demand, then oil would rise in price, not stay the same.

Tue, 02/28/2012 - 21:54 | 2206478 Flakmeister
Flakmeister's picture

Somehow I think that you have never been exposed to the concept of a partial derivative....

Tue, 02/28/2012 - 22:27 | 2206563 tmosley
tmosley's picture

Herp a derp, fuck the fact they are rising at the same rate in terms of dollars, we're all dying next Thursday and that's FINAL!

Tue, 02/28/2012 - 18:28 | 2205930 FrankThinkTank
FrankThinkTank's picture

Yes, walking away..so much substance in that article

"The announcement comes as the Interior Department is considering reducing the area where oil shale research could be conducted in Colorado, Utah and Wyoming"

Also known as blm.gov 

Tue, 02/28/2012 - 18:31 | 2205942 FrankThinkTank
FrankThinkTank's picture

Surely there are ZERO greenies - I'm sure they are all opportunistic oil hawks @ blm.gov. Lockstep with Steven Chu? Never.

Please post about CO2 again, those are at least entertaining.  

Tue, 02/28/2012 - 18:45 | 2205987 Flakmeister
Flakmeister's picture

I see someone desires to parade their ignorance....

Yep, it was the Commie Vegan Greens that caused Texas to decline in 1970...

And it was all those Greens that caused drilling in the US to roughly quadruple since 2008....

Tue, 02/28/2012 - 18:49 | 2206010 tmosley
tmosley's picture

King of De Nile.

Tue, 02/28/2012 - 17:23 | 2205655 Abitdodgie
Abitdodgie's picture

What are we going to do when gas becomes expensive say 10 to 15 dollars  a gallon after we free the Iranian people.

Tue, 02/28/2012 - 17:28 | 2205675 Moneyswirth
Moneyswirth's picture

That's when we crush our iPads and other assorted iCrap into a fine silvery powder, mix with water and voila---you have perfectly fine iGruel to sustain us as we slave away in the salt mines for our Chinese overlords.

Tue, 02/28/2012 - 17:40 | 2205726 GMadScientist
GMadScientist's picture

Ride a bike to a few job interviews and then the liquor store.

Figure out how not to pay taxes on my speculative profits.

Tue, 02/28/2012 - 17:24 | 2205663 RobotTrader
RobotTrader's picture

Gasoline runs 80 cents in 3 weeks, then pulls back a paltry 10 cents the last 2 days

 

Investors celebrate and XRT lurches to yet another world record closing high again.

UFB....

http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosetti...

Tue, 02/28/2012 - 17:51 | 2205780 DaveyJones
DaveyJones's picture

have you been sniffing the petroleum again?

Tue, 02/28/2012 - 17:24 | 2205664 MrBinkeyWhat
MrBinkeyWhat's picture

It is going to be a very "harsh" 21'st Century. Even for the prepared. For the "unprepared"...gonna be a s#itstorm of epic proportions. I hope I am wrong. Somehow, I don't think so.

Tue, 02/28/2012 - 18:40 | 2205971 blu
blu's picture

For certain values of "prepared."

We have yet to see the beast. When it finally appears we'll all realize suddenly that this banter about being prepared was a silly fantasy.

Tue, 02/28/2012 - 17:26 | 2205666 Manthong
Manthong's picture

At least we will save some gas when those unnecessary 35,000 postal service employees are out on the streets this year.

..and that extra food stamps economic boost will help out a lot, too.

http://money.cnn.com/2008/01/29/news/economy/stimulus_analysis/index.htm

Tue, 02/28/2012 - 18:09 | 2205860 RockyRacoon
RockyRacoon's picture

Look how much gasoline would be available without the "sales" to the military in Afghanistan.

Tue, 02/28/2012 - 18:22 | 2205908 Midas
Midas's picture

Not quite chief. It's processing plants that are getting closed, meaning the USPS is going to need a whole lot more diesel to take your letter on a statewide tour before they deliver it. This is the plan the management came up with all on their own. The unions can't stop 'em and congress is even dumber than USPS management. Pony Express in our very near future?

Tue, 02/28/2012 - 17:25 | 2205667 monopoly
monopoly's picture

Correct, gasoline demand is down sharply and has been for a while. We are past that now. This has very little to do with demand and much more to do with monetization of our debt. The more we print the higher prices will go. My pieces of confetti seem to be getting smaller and smaller. We already have $4.00 all over CA. This Tsunami is moving east at a rapid rate.

Thank goodness it does not make any difference in our CPI. Then I would be worried. Now, it is just the citizens we are destroying, not the stock market.

What a feeling. I could sing a song on that.

Tue, 02/28/2012 - 17:55 | 2205796 DaveyJones
DaveyJones's picture

as AbitDodgie said, this has little to do with our demand and a lot to do with others. Then, add to it the monetization of our debt which is (in part and in a circular way) due to our economic addiction to its cheap source. 

Tue, 02/28/2012 - 17:27 | 2205676 q99x2
q99x2's picture

Time for Popeye to eat his spinach.

Tue, 02/28/2012 - 20:39 | 2206299 I Got Worms
I Got Worms's picture

Or his peas.

Tue, 02/28/2012 - 17:30 | 2205688 dolly madison
dolly madison's picture

I'll assume those charts are correct for the averages of those months in question, but here where I live I specifically remember that sometime in 2007 or 2008 the price of  gas was $4.85, and right now it costs $4.10, so it is not quite as bad as it was at its worst YET.

Tue, 02/28/2012 - 17:34 | 2205704 surf0766
surf0766's picture

No not yet. But there is no extra money to be had either. Unless you have acces to the discount window?

Tue, 02/28/2012 - 18:07 | 2205855 HarryM
HarryM's picture

And my finger feels so good after I stop hitting it with a hammer

Tue, 02/28/2012 - 18:41 | 2205982 luna_man
luna_man's picture

 

 

"dolly madison"

Here, where I live, less than three weeks ago, I filled my rig up and paid $3.49 per gal...I still have a few gallons left and am thinking, perhaps I should have filled up again @ 1/2 tank @$3.69, instead of today @$3.90...

At this rate, we could see $4.85 next week or sooner.

 

Tue, 02/28/2012 - 17:31 | 2205691 crawl
crawl's picture

In a world of bad news is great news and good news is better than great news, rising gas prices will help people eat less. And combine unemployment with rising gas prices only helps the fat people soon to be unemployed, get slender quicker. To help pass time, more ipads and iphones will be needed. It's all very bullish.

Tue, 02/28/2012 - 17:33 | 2205699 adr
adr's picture

Gasoline prices don't matter anymore becuase the US consumer doesn't matter. The entire 70% of the economy dependent on the consumer has been replaced by the Fed. Why do you need to sell a product to get money when you can just have it printed for you?

The USA is now nothing more than a giant version of Delaware or South Dakota's corporate tax shelters. Just a giant holding pen for fraud. They'll just keep an address to transfer foreign sales into ever increasing dollar denominated profits to make earnings look good. The Wall Street Ponzi machine will always be located in America, just so the unfortunate problem of what would happen if US based multinationals would have to report earnings in Euros or Yen doesn't ever need to happen.

I think most people have finaly just given up. They are just accepting yesterday will always be the better day, outside the small number celebrating the stock market hitting new records. Apple going to $1000 doesn't mean squat if you have no job. Apple going to $1000 isn't going to create any jobs either.

Tue, 02/28/2012 - 17:58 | 2205795 Flakmeister
Flakmeister's picture

If I have enough shares of AAPL, I might be able to afford an iSlave or two...

Well at least an iSerf to sharecrop the back forty....

Tue, 02/28/2012 - 18:05 | 2205849 jcaz
jcaz's picture

Ahh, nice to see someone else aware of the "magic" of South Dakota.....  I used to run some Dynasty Trusts for Citibank-  I still laugh about those.....

Tue, 02/28/2012 - 17:34 | 2205703 Jumbotron
Jumbotron's picture

Peak Ponzi X Peak Cheap Energy = Peak Prosperity

Tue, 02/28/2012 - 17:59 | 2205818 Flakmeister
Flakmeister's picture

I think the game being played is "Peak a Boom"

Tue, 02/28/2012 - 17:38 | 2205717 VelvetHog
VelvetHog's picture

I'm about to embark on yet another 3000 mile round trip towing tools to get 10K worth of work.  I'm glad gas is climbing.  Toyota Tunda, baby, 15mpg.  Amerika, fuck yeah!

Tue, 02/28/2012 - 17:39 | 2205722 schismjism
schismjism's picture

but wait... energy is substitutable?  the collapse of the us is on the way... 

http://www.youtube.com/watch?v=klvsD9AUSFc

Tue, 02/28/2012 - 17:41 | 2205730 DosZap
DosZap's picture

Apple going to $1000 isn't going to create any jobs either.

 

As we progress in this manufactured debacle, Apple will be laying people off,no matter what their stock price is.

When demand drops(and it will), they will have to come back to earth.

High time we started BRINGING back off shored jobs from countries like India that are screwing us BOTH ways.

Tue, 02/28/2012 - 17:43 | 2205734 Hugo Chavez
Hugo Chavez's picture

If you cant beat 'em, then join 'em.

Here is my portfolio
SPY 30%
VWO 30%
DGS 10%
SLV 10%
GLD 10%
CASH 10%

LETS SEE SOME REFLATION!!!!

Tue, 02/28/2012 - 17:46 | 2205747 SillySalesmanQu...
SillySalesmanQuestion's picture

Wonder what my customers will say when I pull in to see them on my new horsey...gets 60 miles to the bale... that is until Jamie and Lloyd figure out to have a "bubble" on hay and oats.

Tue, 02/28/2012 - 18:27 | 2205926 Midas
Midas's picture

How much is your hay going for? Around here they run about 7 bucks for the cheap stuff. I'll stick to my diesel since the horse eats whether I use it or don't.

Tue, 02/28/2012 - 17:47 | 2205763 css1971
css1971's picture

Hmm, wonder if an exponential would fit on those curves.

Tue, 02/28/2012 - 17:49 | 2205770 Shizzmoney
Shizzmoney's picture

it means that even as IBM just laid off another 1,000 North American employees, that the economy has never been better either.

Can't hate on IBM; they are just playing the game! Stock up $0.45 a day, just like how P&G fired 4K people, and got rewarded with $2 stock uptick. 

Stock in trouble?  Just fire some fuckin' people!  See the profits roll on in!

Tue, 02/28/2012 - 17:54 | 2205791 optimator
optimator's picture

Looks like this is what Government really wants us to run on, 

http://www.gengas.nu/byggbes/index.shtml

 

Tue, 02/28/2012 - 18:00 | 2205822 uno
uno's picture

average premium fuel price $3.986, current 90% silver dime (pre-1965) $2.6722; so less than 1 1/2 dimes get a gallon of premium fuel; not too bad

Tue, 02/28/2012 - 18:04 | 2205845 trip kitchen
trip kitchen's picture

Actually the price of gas is only a little higher than it was in 1980 when adjusted for inflation.

Using data from 1980 and comparing them to now...1980 median household income was 17,110.  That would have bought you 13,688 gallons of gas @ 1.25/gal.

http://www.1980sflashback.com/1980/Economy.asp

Now, with median income at apprx $50,000 (arguably), that amount would get you 12,500 gals. @ 4.00 / gal.  That's a 9% increase

HOWEVER, again using 1980 data, the median house price was $76, 400, or the equivolent of 61,120 gals of gas.

Now the median home price is (arguably) at 155,000, or about 38,750 gals @ 4.00/gal.

That's nearly a 40% decrease in the 'purchasing power' of the median home vrs. the cost of gas.

The perceived wealth of america(ns) is truly evaporating.



Tue, 02/28/2012 - 18:14 | 2205858 Eurogroup
Eurogroup's picture

iRan.

Tue, 02/28/2012 - 18:10 | 2205864 non_anon
non_anon's picture

all time highs are meant to be broken

Tue, 02/28/2012 - 18:20 | 2205897 q99x2
q99x2's picture

From CNBC this one is for Hammy Wanger.
"

While President Obama may not be Wall Street's ideal candidate, stocks are rising on expectations he will be re-elected this fall."

 

Tue, 02/28/2012 - 18:36 | 2205955 earleflorida
earleflorida's picture

Sad day, 'it is for america'! When the countries politicians and leaders, put reelection in front of the countries needs. History has proven time in, and again, that this type of arrogance, and hubris has brougt about military authoritarianism and the ultimate absolute making of a fascist state. 

Forget about socialism or communism,... this unimpeachable [fail-safe from term limits, and unabated gerrymandering] congress is now what McCarthyism called, beyond redemption!

jmo   

Tue, 02/28/2012 - 18:48 | 2206001 AC_Doctor
AC_Doctor's picture

So much for inflation, a quarter would buy you almost a gallon of gas in 1964.  http://www.1960sflashback.com/1964/economy.asp

 

A 1964 quarter will buy you almost 2 gallons of gas in at current prices.  http://www.coinflation.com/coins/silver_calc.php

 

I guess using precious metals as a hedge against inflation isn’t such a bad idea after all…

 

AC_Doctor

Tue, 02/28/2012 - 19:03 | 2206060 tmosley
tmosley's picture

Yup, oil in gold is a little bit cheap, and not really going anywhere.

It would have to move some $30 without any move in gold for it to reach the 50 year average price.

http://www.tfmetalsreport.com/sites/default/files/users/u1246/oilpricing...

Tue, 02/28/2012 - 21:10 | 2206365 ozziindaus
ozziindaus's picture

Average wage in 1964=$4,600

Average wage in 2010=$41,600

9:1

http://www.ssa.gov/oact/COLA/AWI.html

Average gas price in 1964=$0.30

Average gas price in 2010=$2.70

9:1

Just saying.

P.S.  Sustainable inflation starts with credit expansion and followed by wage increase. As long as you have these factors increasing in concert, then you have nothing to be concerned about. The only ones that get fucked are the savers stuffing their mattresses with dosh. These hoarders are counter productive to the economy anyway since they reduce the velocity of money and therefore stifle expansion. 

Tue, 02/28/2012 - 23:09 | 2206670 earleflorida
earleflorida's picture

yeah,... i  could crack a $20 [double sawbuck] back then, and it would last all week. today, i can crack 2-3 $100 bills [C`Note] a week and i'm still wanting. shit,... in the early 60's, i could even pay my mortage/rent, grocery bills, utilities, gasoline, on a weeks pay [~25% of mothly salary] and bank the rest of the months weekly paychecks.

what exactly has the modern world done to lower the cost of living anyway? isn't that what it was all about,... all these so-called cheaper, better, and less expensive inventions making life more affordable and with more job creation to boot.

please don't tell me we priced ourselves out of 'our market'!

just sayin

Ps. i agree with your 1964 assumption, but,... *[??2010?? doesn't cut it] 2012 the average cost of petro will be ~ $4 -$5.50/gal , and the yearly wage ~ $40K if your lucky to have a job

Tue, 02/28/2012 - 18:58 | 2206042 batterycharged
batterycharged's picture

This is really good news.

What's great about it is that the oil crisis isn't yet due to limited energy, so it's not panic time yet.

We need to move out of our Hummers and SUVs. We need this, our country needs this. We need more mass transit, more alternative energy...and that won't happen with $2 gas.

Is anyone not amazed at the number of trucks and SUVs on the road even after gas getting near $5 a few years ago?

This is good news. It's time to get even more efficient, the effort can't be pushed fast enough.

Okay, neg away. Medicine is always hard to swallow.

Tue, 02/28/2012 - 19:06 | 2206070 tmosley
tmosley's picture

The 2008 price spike caused a LOT of dollars to be sunk into research, and that research has produced a lot of promising new leads, both in terms of new technologies and improvements on existing ones, especially solar energy.

Tue, 02/28/2012 - 19:22 | 2206122 Flakmeister
Flakmeister's picture

Can I haz Ionic Liquidz....

Tue, 02/28/2012 - 21:26 | 2206403 tmosley
tmosley's picture

"There is no such thing as technological advance".

The monotone incantation you can hear over the drums at the Temple of Ba'al.

Tue, 02/28/2012 - 19:54 | 2206189 Van Halen
Van Halen's picture

Is this part of the 'America needs to be dragged kicking and screaming into the future' nonsense? Like all those superkewl solar and wind startups funded by our tax dollars through Hope and Change which are going out of business faster than you can count? The Fisker is in trouble. The Tesla bricks if the battery dies. The Volt is a disaster. Wind farms kill more birds than they produce electricity. You gotta show me some real results here, man. Until then, I'm more than happy to have low gas prices and a big fat (And safe in collisions) Cadillac Escalade.

Tue, 02/28/2012 - 19:48 | 2206168 Van Halen
Van Halen's picture

No problems here! I just stop by my local swamp and fill the tank with algae whenever I run low. And whoosh! Off to the Hope and Change Horizon I go!

Tue, 02/28/2012 - 20:07 | 2206222 SwingForce
SwingForce's picture

John Lohman is a very smart man. He posts on many topics, but if you can tie them all together he is onto something much bigger- keep an eye on this guy, he's more observant now that he's "employed" again.

 

Tue, 02/28/2012 - 20:43 | 2206309 RiverRoad
RiverRoad's picture

Re the recent layoffs at IBM:  check the latest records on insider trading at IBM.  There's some chinks in the armor there.

Tue, 02/28/2012 - 20:53 | 2206329 Wtfcity
Wtfcity's picture

Just saw that ass clown Kudlow over talking his guests who were saying the unemployment numbers were fake and the rally was juiced by the fed.I hope when shtf a length of rope finds this media shill.

Tue, 02/28/2012 - 21:29 | 2206412 BeerBrewer09
BeerBrewer09's picture

Gas = $3.69 at local grocery store chain.

Built up gas rewards points = $1.70 off per gallon (limit 30 gallons)

Fill up SUV for 15 gallons plus 3 5 gallon gas cans with $2.00 gas = $51 savings.

pwned.

Sat, 03/03/2012 - 00:40 | 2219127 q5251355
q5251355's picture

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