Saturday, February 26, 2011

$4 A Gallon Gas and the Death of the U.S. Economy

When it happens (and we may be there within weeks) even the U.S. Government won't be able to fake an economic "recovery" anymore. The response by the government and old Zimbabwe Ben at the Fed may just accelerate the crash, though.

Unleaded regular is surging toward $4 per gallon again – the same highs that preceded – and which arguably triggered – the current economic catatonia. If it happens again, though, the effects are probably going to be even worse. A man on his feet can usually take a sucker punch, or at least recover from it. But if he’s already on the ground and you kick him in the head, he’s done-for.

$4 per gallon gas could do exactly that to the U.S. economy – what’s left of it.


Bottom line – I doubt the country can take $4 gas. It almost dropped the curtain last time – and last time, we had jobs, equity in our homes and 401ks, things to fall back on. Now, we’re facing a repeat with our backs already up against the wall. There’s nowhere to go and no help in sight.

If you haven’t taken some steps to prepare for what’s coming, understand that time is short.

A Bad Moon on the Rise. . .

1 comment:

  1. And what about petrol? You'll probably have to learn to ride a camel. You'll like it ; after all, you do like the camel owners.


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