Chevrolet Corvette Stingray C7 Forum - View Single Post

pennor · 12-31-2010, 10:16 AM

You have all made good points and great observations. The truth is that if (when) oil prices rise, and they certainly will for a number of reason, everyone, in the USA, Europe, Asia, everywhere will pay proprtionally more for fuel. When fuel prices rise so do the prices of everything else. It's called inflation folks. So you may not think that another $20/ tank will hurt you. But the cost of everthing else will go up with it. Groceries; those are delivered by truck. My daughter works for a trucking company. They simply add a fuel surcharge to the cost of delivering products. They did in back in 2008, they will do it again. The price of air travel will go up. The airlines will add a fuel surcharge or just use it as an excuse to reduce service, tack on more fees and raise ticket prices. Other businesses faced with higher fuel costs will raise prices and/or lay off employees to cut expences. The result..... A return to resession or perhaps a full blown depression this time because the US Government is now broke and will not be able to "stimulate" a disfunctional economy back to some sort of life. This will echo worldwide, not just in the USA!

Do you doubt it? The media blamed the last resession on a hoursing bubble. But do you remember where gas prices where in the fall of 2008? Over $4/gallon. It was the catalist that kicked an already over extended housing market and consumer debt drive economy over the edge. Faced with higher gas prices everyone cut back driving. The leasure industry tanked. The car companies couldn't sell cars anymore because people could not afford a car payment AND the fuel to run it so they quit buying cars. They quit buying non-essentials like new cloeths, a new house, the latest electrionics, etc. People who now had no jobs got behind on their house payments and the real estate market, over heated as it was, tanked. The result... Businesses lost money, laid off workers they didn't need, or went out of business because you can't stay viable while loosing money. That is unless you are the Government.

OK, don't shoot the messenger, but just watch. If this thing is not nipped in the bud. If oil prices are not controlled, 1929, here we come again. Stay tuned, it's going to be an interesting ride.

12-31-2010, 10:16 AM	#223
pennor Drives: 2011 2LT - 73 Corvette 454 Join Date: Sep 2010 Location: Salem, OR Posts: 240	You have all made good points and great observations. The truth is that if (when) oil prices rise, and they certainly will for a number of reason, everyone, in the USA, Europe, Asia, everywhere will pay proprtionally more for fuel. When fuel prices rise so do the prices of everything else. It's called inflation folks. So you may not think that another $20/ tank will hurt you. But the cost of everthing else will go up with it. Groceries; those are delivered by truck. My daughter works for a trucking company. They simply add a fuel surcharge to the cost of delivering products. They did in back in 2008, they will do it again. The price of air travel will go up. The airlines will add a fuel surcharge or just use it as an excuse to reduce service, tack on more fees and raise ticket prices. Other businesses faced with higher fuel costs will raise prices and/or lay off employees to cut expences. The result..... A return to resession or perhaps a full blown depression this time because the US Government is now broke and will not be able to "stimulate" a disfunctional economy back to some sort of life. This will echo worldwide, not just in the USA! Do you doubt it? The media blamed the last resession on a hoursing bubble. But do you remember where gas prices where in the fall of 2008? Over $4/gallon. It was the catalist that kicked an already over extended housing market and consumer debt drive economy over the edge. Faced with higher gas prices everyone cut back driving. The leasure industry tanked. The car companies couldn't sell cars anymore because people could not afford a car payment AND the fuel to run it so they quit buying cars. They quit buying non-essentials like new cloeths, a new house, the latest electrionics, etc. People who now had no jobs got behind on their house payments and the real estate market, over heated as it was, tanked. The result... Businesses lost money, laid off workers they didn't need, or went out of business because you can't stay viable while loosing money. That is unless you are the Government. OK, don't shoot the messenger, but just watch. If this thing is not nipped in the bud. If oil prices are not controlled, 1929, here we come again. Stay tuned, it's going to be an interesting ride.