Monday, September 06, 2010

Cheap Gas?

Well, "cheap" is a relative term. Maybe "slower to get more expensive" is closer:
Gasoline demand in U.S. slipped 3.1 percent. Experts predict that several factors have been neglected for over a year and this includes factor such as driving season demands. As per the experts all such issues are being considered now.

But will fuel demand drop? This yet remains to be seen; nonetheless this seems to have many takers and oil fell for the 2nd day based on this speculation. The other factors that have led to the fall in oil demand is the issue that the global economy will be slow in recovering. So whether oil demand will rise remains to be seen.
Ah, yes, those "other factors." The global economy being slow in recovering.

So, what if this turns out to be, well, a little more profound? What if talking about the global economy being slow in recovering is like a paleontologist talking about the dinosaurs as being slow in recovering?

One might reply, "Well, there's always war. All those humvees and APCs and helicopter gunships and so on aren't exactly fuel-sipping hybrids." True enough ... but, if we're too poor to report to our local Wal-marts and buy up the Chinese manufacturing output, the Chinese might not see their way clear to continuing to front Uncle Psycho Sam the necessary scratch to fuel his war machine. Never assume there's always going to be a lender whenever you want to borrow.

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