Monday, March 07, 2011
Pain at the pump
Gas is going up everyday and the Mideast crises in Libya , Iran and Egypt is fueling the price. Needless to say we have plenty of gas , there is not a shortage the oil companies are just taking advantage of this opportunity to enrich their coffers.
Saudi Arabia may be the next place for riots and oil troubles.
In some of our cities not long ago they had rolling black out due to the extreme cold and electric heating systems. something has to give or we will see the end of live as we know it. we may find we can not afford to cool our homes in the summer or drive our cars when we want and along with the price of gas food prices are rising also.
I read the other day that bread and milk prices are expected to climb because the price of wheat, corn and other grains are climbing.
And a voice came to my ears, from the middle of the four beasts, saying, A measure of grain for a penny, and three measures of barley for a penny: and see that you do no damage to the oil and the wine.
I heard this explained once as the grain and barley were a poor persons food and the wine and oil was the food of the rich. In other word the rich will grow richer and the poor will struggle to survive.
WASHINGTON (Reuters) - Food, not oil, may prove to be the bigger threat to global growth, with the pain falling disproportionately upon the developing economies that powered the latest economic recovery.
Oil market investors are pricing in only a small risk that Middle East unrest spreads to top oil producer Saudi Arabia -- an event that would instantly catapult oil to the top of the global economic risk list.
Assuming Saudi Arabia's oil flows unimpeded, the blow to global consumer spending looks relatively modest. Food prices, however, are expected to remain elevated for some time, which puts more pressure on household budgets.
"At the moment, the increase in food prices is much more of a concern," Thomas Helbling, an advisor in the International Monetary Fund's research department, told Reuters Insider.
Treasury Secretary Timothy Geithner echoed that view last week, pointing out that rich nations could tap strategic oil reserves if needed, while food prices will remain high "for a long period of time."
Retail sales figures coming this week from the United States, China and Britain will shed some light on how consumers coped in February, when violence in Libya drove energy prices sharply higher.