Gas + food = high consumer prices ... Repeat.
This is the mantra that the media repeat over and over again until the message reaches the saturation holds. The problem is that prices can not sink, even though the price of gasoline and diesel fuel withdrawn. I heard a collective "What?" He echoes through the halls of cyberspace, but you can learn dismay, that what I say above the ring of truth. If you want to see where all this leads, I follow in the nextParagraph. Otherwise, you have only yourself to blame for his uninformed.
There are a number of things that have contributed to our current situation, and while fuel is an important factor, the lesser-known factors have put the world economy on the ropes. Give me a few minutes, and I hit the highlights for you:
American debt: I'm not talking about your mortgage balance VISA or inflated. I'm talking about public debt, estimated at $ 40K-175K for every man, woman and childResidence in the United States. Have you ever noticed that politicians always talk about "making ends meet" and never "pay gap"? The people, the U.S. of A is in debt, and do not leave any time soon. The problem is so severe that some people claim that the U.S. was bankrupt in 2006. David Walker, former Comptroller General (Chief Accountant) to the United States, has continued to record, basically saying that if it was not already bankrupt, he continued, iswill be in 2040. The Chinese now have 1.3 trillion, the debt of the United States, and the Saudis and other Arab states have a significant portion of our liabilities, together with increased investment in the media, like Time Warner, and property, such as the Chrysler Building.
The only way for the Federal Reserve to compensate for the rising tide and to pay the debt, print more money. They did this in order to fund the wars in Iraq and Afghanistan, saving banks and mortgage banks, and reduced theValue of our dollar by 41%. While the Fed and President Bush a "strong dollar policy" have the right, would show evidence to the contrary.
This has led to:
The rebirth of precious metals gold that I had in high school. At the end of my senior year, I buy some 'degree of my money to it for $ 264 oz Gold is now hovering somewhere near $ 950 on any given day one ounce. Even taking inflation into account, the net value of gold has increased by 200%. Against the currentDevaluation of the dollar and the euro's rise were persons bets on the rise of precious metals like platinum, gold and silver. These are not easy to obtain, and must be extracted from tons of rock and sand hardened. Blasting and drilling are the most commonly used methods of extraction, and create a huge amount of waste. What is with the rest of the half a mountain? They take him away, of course. You need some pretty big equipment that is tailored tofor this purpose. In order to beat the competition on the market, would run on a 24-hour shifts, which is composed of extreme terrain, increased wear and tear of your equipment and accessories.
This resulted in part:
Tires OTR Off the lack of road tires for most of their history was essentially a loss leader for tire manufacturers. They had to produce them, because some very large companies, they needed for their devices. If mines ranmoves throughout the day, the tire manufacturers do not cover over the available production capacity to demand. The problem was with the construction of a recovery in developing countries, especially in China. The Chinese began to produce its products, the rising costs of raw materials, such as rubber, oil, steel and carbon black. The costs continue to skyrocket the price of precious metals and gasoline increases, and thousands of small businesses affected their marginscould not justify the cost of operating their facilities.
This, together with:
Ethanol: the environmentally friendly fuel? Environmentalists have always touted ethanol as a prodigy of alternative fuels. You should make the United States independently, or at least less dependent on foreign oil. This is not the case, and it seems that no real human and environmental costs of ethanol production into account. Ethanol has never been without its costs, because it takes a FarmMachines to plant and harvest the corn diesel fumes blowing across the road, then the grain must be processed, and people have to go to work, to run the factories. Then there's the fact that you take with the ethanol to fill an SUV tank could feed one adult for an entire year. Add to greater erosion, lack of incentives to rotate and crop futures speculation and ongoing cost of ethanol are astronomical. In combination with the shortage of OTR tires, this ...
Led to:
TheAgricultural tire and carbon black If something is to produce a lack of profitability, tons of people hop on the train. The only problem is that they get one who trains others to do. If the tire manufacturers began to concentrate on completing applications for OTR tires, had to convert some of their existing production lines. Agricultural tires with some of these lines, and the time was not money raised corn, it is now. I'm sure you can see where this goes.Flash forward to today: OEMs like John Deere, Case and Kubota are with their larger products ship without tires, and the harvest season is not even done here in the United States.
There are four basic components that you need to make a steel belt-wheels: rubber, oil, steel and carbon black. While the prices of rubber, oil and steel rising steadily, is the low man on the totem pole, soot, to take a leap. Experts now proposes a defect in carbon black that does not end until2017 It seems that if you make great tires, use a lot of soot. This could increase the cost of our water. Huh? Yes, I know that sounds like my brain a couple of missed connections, but are they really all there, for the most part. Refined (or activated) carbon black has applications in other sectors, in particular pellets can be used in septic systems of the stuff, and water treatment plants. If you leave the PUR water filter, the black stuff you see is activated carbon.And 'the manufacturers of alcoholic beverages are used (especially vodka) to improve the clarity, smell and taste. Reduce costs higher and drinks (if there is water or alcohol) are in our future.
The costs associated with (and lead) must:
Higher costs of food prices: Corn is the typical food for the cattle, and produces about 6 pounds of meat per bushel. At $ 6 per bushel, locations, $ 1 per pound of beef, without the cost of labor, transportation or processing.Hamburger is approaching $ 4 per pound, where I live, and threatening to go higher, even in autumn crops come into play pork and poultry will be significantly higher as well. This presupposes that we do not attack someone else, there are natural disasters in Nebraska, and gasoline continues to fall. Sorry, I'm not the placing of bets on this. At least the oil market speculators are not grown on agricultural markets, not yet.
and
Obscene oil prices, the Saudis were right in an evaluationgas prices in the course: This offer is not the only problem. Do the math on gas prices 41% lower than current prices. Let's see: $ 3.88 per gallon * 59% = $ 2.28 per gallon. Not cheap, but at these prices, there were lines at gas stations, and SUV sales would jump 10% or more. Before the last 8 years of dollar depreciation, this would be the case. Now we have come full circle, back to our debt. But I said this will continue in the future, I think they should be preparedbackup.
The sky fell: Yes, it is a sedative, but here goes: Let's current oil and gas reserves to speak. What do you think, the best-selling vehicle in China is right now? If you said: "SUV" come forward to claim the prize. You have so many vehicles on the road as we do within the next 10 years. Their gas is subsidized by the government, our taxes. This does not exactly discourage consumption. The Russians, Chinese and Germans have secured allpackages for the supply of energy for the Middle East. Guess who was left out? It is certainly not in Indonesia.
We will never be independent of oil, because our entire economy is built around him, not only the automotive industry. One of the most important ingredients of the plastic is oil, so if you are a non-toxic, malleable substance, which is cheap in the very near future, then you will find the import and use of oil for the foreseeable future. Food supply are not onlysubject to external forces (power too little, droughts, floods, fires) but they are also the subject of a disease or fear of them food-borne infections. You should only relate to how the salmonella scare millions of acres of tomatoes cultures killed a perfectly safe to get an idea of what the epidemic might have something to do with the supply of food research.
From a financial standpoint, the costs of Medicare, Social Security and the government continues to waste to skyrocket. In 2040 it was predicted that we spend more of its250% of our GDP. To view a typical consumer would have to take home $ 40,000 and spending $ 100,000 annually.
Can the American empire is ripe for a full-on collapse within the next 30 years, and honestly, there is no politician or political group that pulls us out of this mess. If the demand continues to outstrip supply, and even if the offer is available, may not be able to afford it.
Eat, complain, complain to consume. This is the cycle thatmust be broken, could be solved only in part on another. But we will not. Change is uncomfortable, so we cruise on a path to certain destruction. And 'the effect of our selfish nature and cause of all our evils.
