Thanks Ben! eom

Nothing to see here

Just bought 31 gal at $2.39, will last almost a month (Fry's $1.00 off deal)...

I've been in the deflationary camp since late 2007. The thing is, the only thing the Fed can do is to slowly (or rapidly) keep printing. So, get ready to pay for $5.75 for a gallon of gas at the pump and $6.75 for a loaf of good bread. (not processed white, that will be $5.75) I know hyperinflation isn't popular here, but I don't believe anything different at this point. The good news is the SPX should be materially higher by this time next year.

Nomore

Yup. Deflation is going to hit all at once via an inflationary collapse like we saw in 2008. For now its Inflation as far as the eye can see shorter term until the Fed blows this whole thing up via the printing press.

.Gov won't be able keep up the charade at $4.00/ga. $3.43 at Costco here in SEA. It was around $3.05 in SLC last week. It's February; May/June should be fun.

Over $4.00 for diesel in parts of the state here already. This is going to get BAD.

$3.45 in Houston, TX the average SUV fills up twice a week because of sprawling commutes. On Unleaded you will be spending 640.00 month (as much as a car payment). Oh MY.

Karl,

Just like 2008 like you have said more than a few times.

Just went up $.40-$.50 here in a day. Saw it for just over $3 unleaded and now close to $3.50.

Let's see how high gas prices go this time. Diesel at $5.00/gallon should halt some truck traffic. Companies seem to have no problem passing price increases to the consumer.

3.95 for regular at Costco today in San Diego.

Gen-

I'm paying north of $4.00 for "cheap" diesel in Western, Oregon. I disagree fuel north of $4 will break the economy. Seems people have adjusted and are just "taking it". At least out here. Isn't that the point of that thread on gasoline consumption collapse?

Crazy. I drive a Prius that I fill up every 3 weeks at about ~$36-37 a fill up given current prices. I also commute on Metro to work during the week. Feeling like a genius right now.

Stop all this "crazy" talk. Barry Obama will save us...or not.

http://www.cnbc.com/id/46445698

Saudi Arabia CUTS oil exports. That is part of the reason (if not all) right there. Iran cutting exports to Europe and Saudi Arabia cutting exports means....

As someone who does not disagree with the peak oil theory (to the extent that oil is a finite resource and that the real problem is that "we" are basically tapping out the cheap oil), I am expecting the peak oilers to prematurely come in and pronounce Saudi oil output to be in decline.

"4" handle all over the place in CA now. (CA is nominally 40-50 cents higher than the rest of the country)

The economy has become a lot more efficient (See: http://mjperry.blogspot.com/2010/08/most.... ) since oil hit its high in Summer of 2008 and the average gas mileage of all US vehicles has gone up (slightly). I don't see high gas prices having as big an impact as it did in 2008.

18 wheelers are hybrids now?

Seem this is a redo of the Carter Administration. At least we don't have long lines at the pump.

and we better hope we don't get any hurricanes hitting the gulf this year.

Jmanng our economy is still incredibly energy (oil) intensive. If you don't think $4+ gas won't stall it, then I recommend you stop reading that tripe

Fraudster,

Saudi Arabia has another issue. It has to supply gasoline/oil to its population. The price for a gallon is SA is cheap. There population is growing. This subject is part of the theory also. Not just production, but supply to the countries that are producing. Saudi can only pump so much so fast. They have to keep the flow of spice to their own people to keep them happy.

A regular poster at the oil drum wrote a theory on this, and included it in their presentations. Westexas was his handle over their. Worked in the oil industry and still does. Many people in the industry are regular posters there.

Here is a snip of a new article there. Its on energy consumption and production statistics

snip
* We are now burning 10 times as much energy as a century ago to provide the goods and services we consume.
* Energy consumption is still increasing rapidly, with an approximate 550 exajoules (523 Quadrillion BTUs) consumed at the primary energy level in 2010.
* Of this total 80% was provided by fossil fuels, 11.3% by bio-energy mainly from wood combustion, 5.5% from nuclear, 2.2% from hydro, and 0.4% from other renewable energy sources.
* The historic time for each energy source to grow from 1 to 10 exajoules in primary energy production was 12 years for nuclear, 33 years for crude oil, 39 years for natural gas, 52 years for coal, and 59 years for hydro-power.

Fraudster-

What Bikemechanic refers to is The Export Land Model. I'm done fighting the PO battle here, but read up on it ELM if you are interested.