In a sign of increasing pessimism about the direction of the U.S. economy, roughly 4 in10 Americans now believes it is in permanent decline, according to a new CBS News/New York Times poll. (Hover and click on the image below for more details)

(Reuters) - If banks loaned out their $2 trillion cash hoard, if worker training programs were stepped up and if 3 million job openings were filled, the economic recovery would be far stronger, a panel assembled by former President Bill Clinton said on Wednesday. [Read Bill Clinton's remarks HERE]

So what the heck is going on with the economy? Gasoline is a big factor. American drivers are to big oil companies what puppets are to puppetmasters. Like a game, the masters rise the prices up to $4 a gallon and beyond, and just as our backs are beginning to crack under the weight, they ease off agin. Cat and mouse game-like. Torture. Push us to the edge of the cliffs, and pull us back a little bit just as we lose our footing. What else is eating away at our money?

Leading the way: HOUSING ::: AdAge reports "Data being released ... from Experian will show that in the first half of 2010, an estimated 275,000 people just walked away from mortgages they could afford to keep paying because they had become such awful investments. That adds up to roughly 17% of defaulters. While that figure is down 35% from the first half of 2009, as evidence of a double-dip housing crash mounts, "we expect the incidence of strategic defaulting to go up," said Ms. Bremmer.

Estimates of the number of mortgages under water in the U.S. hover just over 1 in 4 but that could jump to half in the coming years. Recent data from Corelogic suggests that almost 10% of mortgages originated just last year are already in the negative equity range. The Federal Reserve shows average homeowner equity at just 38% down from 61% a decade ago ...

...strategic defaulters... are no deadbeats in a traditional sense. The Experian data show that they are more likely to have had a jumbo-sized mortgage, have had excellent credit scores, have had more than one house or investment property, and have a higher than average household income. They also stay current on all their other bills. If you look at the incidence in these charts, the proportion of strategic defaulters keeps going up.

They should be owning and spending like home owners. But they're not, and for up to the next seven years they might have a hard time finding a mortgage while their credit recovers. "As many strategic defaulters as there are," said Ms. Bremmer, "there are many more people who are short-selling. Those people are renting, too."" (In other words, they are driving up rents and eventually will end up defaulting on their landlords).

As I have suggested before, if Barack Obama wants to create a REAL stimulus that will "save his presidency" he must give families a 20% cash down payment on a new or existing home that they can afford that is + or - $150 within the amount they are currently spending on rent.

John Sealander ::: Sound Familiar? "I paid all my June bills today. It's weird. Money comes in the door. Money goes out the door. And nothing really changes. There always seems to be enough to pay the bills on time, but I never really get ahead of the game. Maybe in this dismal economy, that's as good as it's going to get. I really need to invent something that I can sell for $19.95 on the cable TV channels and tell people that if they order right now, I'll send them not one, but two useless gizmos for the same price... with separate shipping and handling, of course."



Tags: economy, Bill Clinton



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Press Release from U.S. Senator Kirsten Gillibrand ::: President Obama has decided to release oil from the Strategic Petroleum Reserve (SPR). In a letter earlier this year to the President, Senator Gillibrand delineated the urgency of an SPR drawdown. Gas Prices across New York are 36 percent higher than this time last year. The drawdown of 30 million barrels will help to stabilize gasoline prices.

“I applaud President Obama’s decision to release oil from the SPR,” Senator Gillibrand said. “With our families already struggling in this difficult economy, the last thing we need is for gasoline prices to continue to skyrocket. This release will stabilize gas prices and provide crucial relief to families here in New York and across the country.” OK. Ripped from Drudge:


OIL PLUNGE AFTER RESERVES RELEASED...
30 million barrels will last U.S. -- a day and a half...
Dow plummets 200+ points...

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I filled up the gas tank this morning. I wondered to myself whether I REALLY had the 20 gallons that the pump read-out said I had. The gas gauge on my car doesn't tell me how much petrol is in there. (I wonder if any carmakers now include an option for a dashboard digital read-out of what's in the tank?)

All gas pumps bear stickers which declare they've been checked for accurate delivery. But exactly HOW accurate is that?

Look what happened to a motorist in China:

A Sinopec gas station in Anhui city of Suzhou province pumped 45 liters of gas into a 35 liter gas tank

Real person real story, yellow plate-less [Chery] QQ, 0.8 L displacement, dealer and manufacturer confirm gas tank is indeed 35 liters.

May 4th, filling up gas. The car still had a little fuel, but the pump kept going until it reached 335 kuai[RMB]. Surprised, thought gas prices have increased to 10 kuai [per liter], because in the past it was always a 200-some kuai.

This car owner is from Suzhou, and hasn’t driven the car out of the gas station after filling up, and instead has been seeking an explanation from the gas station, but there hasn’t been a reasonable explanation up to today. On the afternoon of May 5th, Sinopec brought the people from Bureau of Quality Inspection, as well as from television news. The Bureau of Quality Inspection checked that gas pump and then surprising said there was nothing wrong with it! So a gas tank can suddenly become 10 liters larger out of thin air?

Asked the gas station to drain the gas on the spot [to measure it], but no one from Sinopec accepted [the challenge], all of them hiding.

Still have the receipts, and some replies to what some friends have asked.

No [separate] gas canister.
I pumped gas directly into the [car's] gas tank.
Everyone can check for themselves the gas tank capacity of the 0.8L QQ.
How did it add up to 335 yuan?

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Here's a little snippet from an article that appeared in the New York Daily News, just in time to escape major notice (thanks to the timing with the Memorial Day Holiday weekend). The author is NYS Senator Daniel Squadron. I'm going to "cut to the chase"

Two families want to save money on gas. Family A upgrades from a 10 mpg to a 15 mpg light truck. Family B upgrades from a 25 mpg to a 45 mpg sedan. Over the next 1,000 miles, who has saved more gas?

If you chose Family B, you'd be like most people - and you'd be wrong. Over 1,000 miles, switching from 10 to 15 mpg will save you 33 gallons. Switching from 25 to 45 MPG will only save you 18 gallons.

Don't worry, studies show that most consumers get miles per gallon comparisons wrong, as I did when I first took the quiz. But at the dealership, getting this question wrong is bad - for your wallet and the environment.

Ultimately, the most important question for consumers is basic: Given the numbers of miles I drive (the daily commute, trips to soccer practice, the annual pilgrimage to Florida) and the type of car I need (most people are not choosing between a Hummer and a Prius), how many gallons of gas will I actually need to buy?

To answer this question correctly consumers need to know their GPM - their gallons per mile.

SO, how do you figure out your "Gallons Per Mile?"

You can either

• Click on "comments" below for the answer, or
• Read the full article on the DN website.

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This is what it looked like this morning at the CHEAPEST gas station in the neighborhood!

~Photo by Saki Tumi

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Collaboration among the nation's political leaders and support for the economic stimulus were among the topis former US President Bill Clinton fielded in a March 2nd talk at the University at Albany. Speaking before an audience of 4,500 at SEFCU Arena... the two-term chief executive offered students some advice: to maximize the opportunities available to them at UAlbany and to "make the future you want." ~ UAlbany Magazine, Spring 2011, Volume 20, #1

The world is breathing a collective sigh of relief. Oil prices tumbled late last week. Logically, gasoline prices at the pumps should follow. "They" say that should happen soon... or maybe not:

If you thought the U.S. housing crisis was bad, think again.

It’s worse.

Hmmm... why does it always take longer for gas prices to come down than it does for them to go up?

I just read where 25% of U.S. households rely on check cashing or payday loan services? Holy s**t, that is insane! The people who own these loan companies are taking advantage of the working poor, the poor, and the lower middle class.

The poverty industry is one of the biggest and most lucrative in the USA. An infographic I looked at via digg actually strains to make its point, but it really comes down to just a few things; Payday loans, check cashing services, credit cards with a poor credit score, bank overdraft fees, pawn shops and title loan places. All of these are the only financial tools for the poor and the unexperienced young. And all of them will seriously keep you poor.

America was founded by settlers. They were looking to escape this situation in Europe by coming here and carving out their own chunk of the world. America was built on the premise. That ambitions people should be able to thrive through their hard work. Back in Europe they could work 12 hour days on a farm, but never get ahead. Here they can open a farm and get ahead. Things have not changed that much today. There are still plenty of opportunities to do your own thing...for low income Americans there are even more. There are tons of grants out there which will help you start a business, plus numerous tax breaks.

The problem I see today is that we are no longer the ambitious group of settlers but instead have become lazy. We want a free hand out. Our global position reflects this also. We have become accustomed to living on the fat of the land. The baby boomers children are trying to just ride on this fat of the land. Unfortunately it is almost gone. It's time to bring America back to what it should be.

And some of the simplest things are what astound me. What ever happened to living within your means? Everyone says how far in debt people are, but my question is where is their money spent? I think Social Services Money (welfare) should be loaded on a card and every month you should have to sit down with a social worker and go through all your purchases/payments. I think that would be very eye opening for a lot of people.

Overdraft fees are the worst, most of the other things can be avoided, but sometimes you cannot get by without one. So, if you're living paycheck to paycheck, and it comes down to the wire, a mistake can really cost you. A $35 overdraft for being 75 cents overdrawn is robbery, especially if it happens more than once. For example, suppose you forgot about an automatic draft or you were overcharged for something, and then you bought 4 or 5 things for $1 or $2 and next thing you know you owe the bank $175 in overdraft fees for only $5-$10 overdraft. Banks should be required to make those fees a percentage or allow them to charge a small interest for each day the account is in overdraft. The taxpayers bailed out the banks, the banks should not be robbing the poor like this, when many have lost their jobs as a result of this recession.

The question now is "where are we going from here" - and I don't think it is yet time to get the answer - the economy is still too much in flux - the PRICE of gasoline affects the price of FOOD and like it or not, those GAS prices are ruling the way Americans live day-to-day. You cannot plan for a future wondering if Gas might be $5 a gallon next week (or next time any kind of disaster or political upheaval happens someplace else on the planet).

I've been thinking about this a lot and I'm drafting an article that explores in-depth the situation America is in and how change might be initiated... stay tuned!




Tags: economy, gas and oil prices



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The global financial storm, like the tornado-laden storms crossing the United States in recent days, is wreaking previously unexperienced levels of havoc on the consumer. Prices of various commodities are headed to the stratosphere, led by gas and by coffee:



Gas prices across the country have jumped about 40% since last fall, to more than $3.80 a gallon nationwide — more than $4.00 here in New York.

Top oil exporter Saudi Arabia is uneasy with high oil prices and concerned about their impact on the global economy, the chief executive of state oil firm Aramco said Tuesday.

Oil prices recovered from early losses on Tuesday, with Brent crude LCOc1 trading up 16 cents at $123.82 a barrel at 1059 GMT. Aramco Chief Executive Khalid al-Falih's comments at an industry event in South Korea had weighed on sentiment earlier, when prices fell amid a wider decline in commodities.

"We are not comfortable with oil prices where they are today...I am concerned about the impact it could have on the global economy," Falih told an industry gathering in South Korea.

Amid higher oil prices and government spending cuts, the US economy now appears to be slowing. The euro struck a 16-month high against the dollar and the Swiss franc notched a record high versus the US unit Tuesday, while the dollar tumbled to an all-time low point of 0.8745 Swiss francs. Markets are keenly awaiting Fed chairman Ben Bernanke's first news conference on Wednesday. With billions of dollars riding on Bernanke's comments, the conference is expected to be a cautious affair.

Investors pushed the price of gold, a hedge against inflation, above $1,500 an ounce for the first time last week.

They can't give houses away either - er- I should say banks WON'T extend credit to otherwise qualified buyers - prices for new homes have tumbled 11% since the end of last year. Existing home prices slid 5% in the same time period. Vacancies dot neighborhoods across the Capital Region.

Cars are available - and being purchased - even though some consumers are waiting it out to see if Ford brings out an electric and/or hybrid model. FoMoCo is doing well right now... "In 2010, Ford rebounded from the recession that helped send its cross-town rivals into bankruptcy protection, earning a total of $6.6 billion. Ford said it expects profit to be even higher for 2011." ~ NY Times

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As the financial collapse continues on its merry way to the second dip of our double-dip recession, those $35 round-trip Chinese buses are looking a lot sweeter.

Air travel is already a joke, with airlines gouging passengers by charging for anything they can think of (I'm surprised they don't make us pay for the air we breathe in flight). Now comes word that soaring jet fuel prices have wiped out profits for United and American Airlines, with JetBlue and Southwest just about breaking even. So look for fares to go up up up and that means that for most struggling Americans, going anywhere by airline will soon be out of the question: an unaffordable luxury.

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Paul Slazas drove to the Albany presser in his brand new Chevy Volt...(it's the red one in the video below --- which also shows Mayor Jennings driving up in a white Volt --- Albany County Legislator Brain Scavo, who is active on the Mass Transit Committee and has been in the car business for 25 years, hams it up for the camera --- Mr. Slazas also appears in the vid. please excuse the bad sound as the wind was blowing quite fiercely) Slazas lives in Stockport, Columbia County, and told me that he discovered the press conference while online googling EV charging stations in the vicinity of Albany.
[Hover and click on the image to enlarge]

This reporter today enjoyed an interesting field assignment and got a firsthand look at EV technology. [LINK]


It's all for the greater good: Albany Mayor Jerry Jennings today announcing a partnership with NYSERDA and the New York State Department of Transportation to prepare the Capital city infrastructure for electric vehicles.

Bob VanAmburgh at City Hall explained the study is expected to take two to three months, and results will be made public in mid-to-late summer.

The effort includes a feasibility study and pilot program, which will include installation of electric vehicle charging infrastructure throughout the City. In addition to the government agencies, DeNooyer Chevrolet, National Grid, the University of Albany, and VHB Engineering, Surveying and Landscape Architecture, P.C. have all agreed to partner with the City.

“This program is an exciting and important step forward for the City,” said Mayor Jennings. “Albany’s position as a major juncture between Boston and Buffalo, New York and Montreal, makes it an ideal hub for electric vehicle recharging infrastructure as we plan for regional adoption of electric vehicles. This is yet another program that my Office of Energy & Sustainability is implementing with the goal of creating a more livable and sustainable Albany.”

Earlier this year, the Mayor's Office of Energy and Sustainability released the city's greenhouse gas inventory and priority initiatives for 2011 which includes a goal to replace at least 10% of the municipal fleet with alternative fuel vehicles by 2030...


NYSDOT Commissioner Joan McDonald said, “At Governor Andrew Cuomo’s direction, the State Department of Transportation is working to develop environmentally-friendly transportation options and reduce transportation’s carbon footprint by decreasing greenhouse gases from vehicles. We’re pleased to work with Mayor Jennings on the City of Albany’s electric vehicle pilot program, which will help expand our knowledge of energy efficient alternatives to traditionally-fueled vehicles.”

“I congratulate Mayor Jennings, the City of Albany and the partners in this important step in the transition to electric vehicles,” said Joe Martens, Commissioner of DEC. “Under Mayor Jennings’s leadership, Albany was an early adopter of the state’s Climate Smart Community pledge and continues to embrace programs that will make our community more livable, while saving residents money and moving us closer to the clean-energy economy. I applaud the mayor’s investment of local resources to promote the city's sustainability, and his leveraging of additional state and private resources to bring those concepts to fruition.”

This is the fifth joint research-and-development solicitation between NYSERDA and NYSDOT. The program this year focuses on transportation energy efficiency, transportation demand management and low carbon transportation fuels. The transportation sector accounted for 77 percent of petroleum consumption and nearly 40 percent of GHG production in New York State in 2009, leading both categories that year and increasing since. That can be improved by lowering fuel use and emissions, which is the focus of these new contracts.



Tags: Albany EV, Chevy Volt, Jerry Jennings

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The time is coming! Why am I cheering this? Because $5 a gallon gas will drive up the price of food and other goods, triggering the second, more serious dip of the double-dip recession.

Big Oil, IMHO, has known about this for some time. It was to have already taken place by now, but had to be postponed due to the Gulf spill, which began a year ago today.

So, donning my "Karnac" hat, what do I see?

I envision (in a wild dream) President Barack Obama, responding to the desperate economic situation, by launching an "American Dream" program, where EVERYBODY can buy a house (kinda like it was in the postWW2 years). There's already a glut of foreclosures and surely with these higher prices more to come. Of course, thanks to McDonald's, the employemnt rate is on its way back up, but how long can they prepare hamburgers for people who will eventually be unable or unwilling to pay for them? We need the BIGGEST BADDESST BAILOUT Obama can muster!





Tags: price of gas, $5 a gallon gas

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Gasoline Prices ::: Sheeple continue rolling over... more houses going up for sale on city blocks with nobody buying...

New claims for unemployment benefits unexpectedly rose last week, bouncing back above the key 400,000 level, while core producer prices clumbed faster than expected in March, government reports showed on Thursday.

Initial claims for state unemployment benefits rose 27,000 to a seasonally adjusted 412,000, the Labor Department said.

So, how long before the collapse and the "second dip" of the now almost certain double-dip recession?

ASIDE:::I think it’s great! Can’t wait until gas gets to $5! That’s when you’ll see Pres. Obama kick off a re-election clincher: a government subsidized home-buying program so that poor schleppers like me will be able to purchase a home! Trump will be out on his rich keester!

The LA times has a great article offering up the best remedy for the price of gas... here'a a snippet:

"Officials are quietly working on just how steeply to require the auto industry to cut emissions and increase mileage in the next generation of cars, SUVs and pickups. Their decision, coming as early as May, could require dramatically cleaner vehicles that would cut carbon dioxide emissions by as much as 6% a year and average 62 miles per gallon. The new rules would be phased in from 2017 to 2025."

But even the LA times has been fooled. The discontinued Honda Insight got 70mpg. Toyota Echo around 50mpg. In the mid-80's a Chevy GEO mini-station wagon with a 3cyl engine got 60mpg. GM also deliberately (as I have pointed out time after time) killed the EV1 electric ar so it could build ghetto-Hummers instead. This high-mileage stuff could have been done 10 years ago.

ANOTHER POV ::: How to have Gas at $1.50/Gallon and do good for the Environment and our Health too:::
1- Do what China is doing, which is to operate all the Top energy companies on Nationalize basis. As a result of which Chinese Government subsidies the price of Gas so that Chinese pay MAXIMUM of $1.50 per Gallon. This would be the same as if US Government Nationalized Exxon, Chevron, Texaco, etc. and took the $100s of Billions of Dollars in profit that these companies make per Year, and their $30Mill per year salaries and multiple $50Mill private Jets for their top brass, and passed these SAVINGS to American people/businesses by subsiding Gas to be $1.50 per Gallon...(more)

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Photo by Saki Tumi, taken in Albany, NY at 3:45pm Saturday, April 9, 2011

In reaching this "high point" I can only say it took the oil industry longer than anticipated to get here (the Gulf Oil Spill forced them to cancel the $4 plan last year) ... I recall hearing back around the time Sadaam Hussein was forced out of power how "gas would be cheaper" ... BUT ACTUALLY there were many many other voices constantly reminding us "gas is $5 or $6 a gallon in Europe" and "they're paying $5 and $6 a gallon in Europe" and "Europeans are used to paying $5 or $6 a gallon for gas" etc. etc. ad nauseum.

The so-called economic "recovery" along the housing market and unemployment and all that should come to a boil-over relatively soon, with President Barack Obama right in the path of the fallout (Betcha Hillary is glad she lost the nomination now!)...

Speaking of government, what happened to those "strategic reserves" and have you ever noticed that whenever gas goes through this crisis mode, "strategic reserves" get mentioned, and then as time passes, they're not brought up again?

And what happened to those 70mpg Honda Insights? You know, the cute little hybrids that looked like vacuum cleaners? Were they persuaded out of existence the way GM got rid of the EV2's (and conspired to ruin the nation's light rail system)?

Watch out for the double-dip!

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Well, he's gone and done it! (As expected) US President Barack Obama has thrown his hat in the ring for another term. I received an email just before 0630.

Friend --

Today, we are filing papers to launch our 2012 campaign.

We're doing this now because the politics we believe in does not start with expensive TV ads or extravaganzas, but with you -- with people organizing block-by-block, talking to neighbors, co-workers, and friends. And that kind of campaign takes time to build.

So even though I'm focused on the job you elected me to do, and the race may not reach full speed for a year or more, the work of laying the foundation for our campaign must start today.

We've always known that lasting change wouldn't come quickly or easily. It never does. But as my administration and folks across the country fight to protect the progress we've made -- and make more -- we also need to begin mobilizing for 2012, long before the time comes for me to begin campaigning in earnest.

The president goes on to promote a video and other info along with a "donate" link... ["It Begins With Us" video, website, e-mail: "Say you're in"]

I wonder who will emerge as a challenger.

PRICES ARE UP THIS MORNING ::: (Capital Region) Stewarts Stores have raised prices on staples like bread and gasoline! $3.81 for the cheapest grade at the local pump around 0715!

The economy is still what matters, and what will matter going forward. Mr. Obama may seem like he is breathing a sigh of relief now that the job creation and unemployment numbers are looking better. But read the above paragraph once more. The screaming and kicking over high has prices apparently hasn't "hit home" with the public yet. The delayed reaction will likely be deafening, as those gas prices are what have driven food staples (bread & milk, etc) higher --- PLUS --- we are hearing warnings about INFLATION coming soon (if not already here).

Remember when everybody thought Hillary Clinton was a shoo-in for the presidency? And then, out of nowhere, along came Barack Obama?

I wonder if we have even a left field clue as to who might eventually become the GOP candidate...

Tags: Obama in 2012, Obama 2012 Campaign

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Warren Buffett told CNBC today that the collapse of the euro ... is far from "unthinkable."

The price of oil is still way up there ...

The worst Texas drought in 44 years is damaging the state’s wheat crop and forcing ranchers to reduce cattle herds, as rising demand for U.S. food sends grain and meat prices higher ...

The Obama administration is trying to dissuade other countries from imposing export bans and other measures that were blamed for fueling food price spikes in 2008.

And, just in case you were beginning to believe a "recovery" was in progress, home sales and prices plummeted last month, according to data released Wednesday by the U.S. Census Bureau.

Owch!

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Is the Spirit of Revolution that spread across North Africa about to sweep across the United States?

If it is, it will likely start in the State of Utah, where officials are considering using silver and gold coins as legal currency.

Another indicator that the seeds of revolution may be germinating: the price at the pump! CRUDE OIL is heading in one direction, and that is UP!


Continued fighting and tensions in Libya sent oil futures higher Friday to hit their highest intraday price in nearly 2-1/2 years. London Brent crude [LCOCV1 116.10 1.31 (+1.14%) ] rose above $116 a barrel as fighting in Libya intensified and on news of protests in Saudi Arabia's oil-producing Eastern Province. U.S. light, sweet crude [CLCV1 104.39 2.48 (+2.43%) ] jumped above $104 a barrel, levels not seen since September 2008.

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Libya Supply Disruption Could Push Oil to $130... where's Jed Clampett when you need him?

Mississippi Governor Haley Barbour, a potential presidential contender, accused the Obama administration Wednesday of favoring a run-up in gas prices. Politico blog offers a counterargument: that Barack Obama is repeating Jimmy Carter's energy policy mistakes.

Whenever gasoline prices go up up up... elected officials in the U.S. start calling for the President (whoever that may be) to tap into the National "energy reserve" [The reserve, created after the 1973 Arab oil embargo to protect against oil supply interruptions, holds 727 million barrels of government-owned crude oil in salt caverns near the Gulf Coast. While running for the presidency in 2008, Obama was among the lawmakers calling for the government to draw on the reserve. So far, the White House has been noncommittal, with Press Secretary Jay Carney telling reporters that all options are open.(LINK)]: Latest politician to grandstand on this - Kirsten Gillibrand!

Washington, DC – With gas prices rapidly increasing due to turmoil in the Middle East, U.S. Senator Kirsten Gillibrand is urging President Obama to release oil from the Strategic Petroleum Reserve (SPR). In the last year, gas prices in New York State have increased by 25 percent. This action would immediately stabilize gasoline prices which, according to the Energy Information Administration, were higher last month than in any February on record.

“Gasoline prices are at an all time high this month and are up $0.71 per gallon from a year ago,” Senator Gillibrand said. “Our families are already struggling in this difficult economy, and the last thing we need is rising gas prices. Releasing oil from the Strategic Petroleum Reserve is critical to relieve this extra burden on our families here in New York and across the country.”

How to have Gas at $1.50 per Gallon and do good for the Environment and our Health too...
Do what China is doing, which is to operate all the Top energy companies on Nationalize basis. As a result of which Chinese Government subsidies the price of Gas so that Chinese pay MAXIMUM of $1.50 per Gallon. This would be the same as if US Government Nationalized Exxon, Chevron, Texaco, etc. and took the $100s of Billions of Dollars in profit that these companies make per Year, and their $30Mill per year salaries and multiple $50Mill private Jets for their top brass, and passed these SAVINGS to American people/businesses by subsiding Gas to be $1.50 per Gallon. ~ contributed by No2RepublicanConJob

Gas prices have climbed more than 50 cents per gallon over the past 12 months and are now above the $3 mark. These prices are putting a significant dent in the budgets of middle class families across the country. The price of oil has risen over $10 per barrel in the last month, a price that would cost Americans an additional $40 billion annually, according to the Petroleum Marketers Association of America. Source: Gillibrand Press Office

In a letter to the President, Senator Gillibrand wrote, “The current price spike couldn’t have come at a worse time. When gas prices last peaked in July 2008, unemployment was 5.8%. Now, unemployment has been at or above 9% for 21 months. The Consumer Price Index increased 1.5% for all items in 2010, but for gasoline, the increase was 13.8%.”

Geoffrey Styles is Managing Director of GSW Strategy Group, LLC. He bloggeth this: "even if the current crisis in Libya and the Middle East resolves itself quickly and without further impact on world oil supplies, it provides another unwelcome reminder that we live in a world in which the President and other world leaders might need to call on our strategic oil inventories on very short notice to prevent a catastrophic breakdown of the economy."

Tags: peak oil, Gasoline Prices

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We're at a crossroads. The entire future of the "recovery" depends on what happens next with the price of crude oil and ultimately, gasoline.

With gas now at $3.45 here in the Capital Region, beyond that $3.25 per gallon "tipping point," it won't be long before we start hearing again how "people are cutting back" so they can feed the family car. Retail sales will suffer. (It's happening already, but the "wave" won't make landfall for a month or two or three.)


Last night local economy watchdog Hugh Johnson was on teevee, telling me there was not going to be "double-dip" recession.

"It's not going to turn the current recovery into a renewed recession,” Johnson said. “Sometimes popularly referred to as a 'double dip' -- that's not in the cards. But it will slow this recovery, and slow the important part of the recovery -- which is the addition of jobs to payrolls." ::LINK::

Johnson's half right. There won't be any dd IF things calm down in Arab-rich nations like Libya and the Suez Canal remains safe and free. But until the outcome of the Arab Revolution is finalized, all bets are off.

Worst-case scenario: forces in the middle east put the squeeze on oil. Investors panic. Crude prices skyrocket. $4.50 at the pumps! (By the way, it's already $4 in some parts of California). Now, factor in all those unemployed Americans who have fallen off the unemployement rolls but remain jobless. Factor in rising food prices. You've got a double-dipper on your hands, brother... as in "brother can you spare a dime dollar."

PS - Nowcasting, defined

Tags: Libya oil, Suez Canal

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A little while ago I sent out a tweet after driving past the Voorheesville Stewart's Shoppe, where GASOLINE was selling for $3.45 a gallon! "Uh-oh," I thought to myself, "how long before people start cutting back on other purchases." A few minutes later when arriving at my destination, Saki Tumi had her tv on, watching the NBC Nightly News, where the top story of the day, the Arab Revolution spreading to Libya, carried additional information that "oil company workers from various nations are being evacuated" --- well, that was all I had to hear! The fate of the American economy now rests in thewinds of change sweeping across North Africa. And earlier today, I heard a radio talk show host mention he "wouldn't be surprised if revolution fever didn't break out in China," and sure enough, NBC news reported that revolutionaries staged protests in China that were quickly snuffed out by the authorities.

What next, world? What next!

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