The Cost of Stupidity Just Went Up

FARK.com: (3656470) As the national average for a gallon of unleaded regular gasoline reaches $4, keep in mind that mere months ago President Bush accused a reporter who asked about $4 gas of liberal bias

Dr.Zom : 2008-06-08 08:22:47 PM
Electing an oil man president and complaining when the price of gas goes up is like electing a pimp and complaining about the rising price of vagina.

And the truthiness flows…this particular piece of it coming from this story.

NEW YORK – The average price of regular gas crept up to $4 a gallon for the first time over the weekend, passing the once-unthinkable milestone just in time for the peak summer travel season.

Prices at the pump are expected to keep climbing, especially after last week’s furious surge in oil prices, which neared $140 a barrel in a record-shattering rally Friday.

While Americans who have to drive will feel the biggest squeeze, the increased prices also translate into higher costs for consumers and businesses, who will be forced to shoulder increased transportation costs of food and anything else that needs to be transported.

[full story]

Really folks, is there any question left as to where the blame lies for this debacle?

Der Vassermeister Quote 2008-06-08 08:52:25 PM
Do you know the price per barrel of oil in February 200[3]? (For historical context, that would be the month before the Iraq invasion). The answer is that in February 200[3], the month before the Iraq invasion, the per barrel price of oil was [$35.87]. Thank you preznit numb nutz.
[note: had to edit for accuracy, but I liked the point. source]

The Market Recursion Continues

Oil surges $11 to record $138 – Jun. 6, 2008

NEW YORK (CNNMoney.com) — Oil prices shot up nearly $11 a barrel and settled Friday at a record $138.54 on geopolitical jitters, a dollar decline and a forecast that oil would hit $150 by July 4.

Friday’s spike in the July contract for light crude on the New York Mercantile Exchange marks the largest single-day increase in oil prices on record. The contract hit an intraday record of $139.12, breaking the previous trading record of $135.09.

This looks like pretty much rampant speculation.  Everyone is trying to lock-in a good price (see Dodge’s 3 year price guarantee) and that’s pushing demand even further, plus problems in Africa and Iraq and a new round of sanctions on Iran…all pushing future demand through the roof.

Ultimately we have a flat-finite supply curve and an exponential-infinite demand curve, leading to a halfway-infinite price curve, which is to say, it will increase like demand, just half as quickly.

The price will continue to increase until the fundamentals change.  It will only level for a time, it will not decrease for an extended period of time for the foreseeable future.

Add that analysis to the others.