Oil Shock Threatens 'Lasting Changes' To U.S. Economy

Oil Shock Threatens 'Lasting Changes' To U.S. Economy

uk.reuters.com

WASHINGTON/NEW YORK (Reuters) - Oil's relentless price rise has pushed U.S. drivers off the road, curbed consumers' appetite for expensive goods, forced airlines into their deepest cuts in years and threatened car makers with a flood of red ink.

It all points to a dramatic shift in the U.S. economy as oil's surge above $130 per barrel forces already cash-strapped households and companies to rethink business as usual, and the changes are likely to be lasting, even if energy prices retreat.

"The weakness in the United States economy in housing, that we have read about for over a year, with the mortgage crisis and credit crunch, was one blow. But oil is another blow, and it's probably one blow too many," Dow Chemical (DOW.N: Quote, Profile, Research) Chief Executive Andrew Liveris told Reuters.

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Isn't it ironic that this piece is coming out of the >UK< reuters, and not the U.S. one...

The folks in charge of manipulating numbers and spinning how this is all "just a little slowdown" are going to have a hard time continuing their fairy tale spins and kool-aid hand-outs, even to the SHEEPLES who normally buy into their propaganda. When it's costing 3 times as much to drive across town or to buy groceries, you're no longer going to be able to bamboozle everyone who KNOWS they don't have the money they once had for anything OTHER than just basic SURVIVAL needs!

And the oil markets and speculators just keep getting richer and richer while the nation plummets into a financial disaster and everyone continues to struggle and suffer.

Awesome.

When consumers curb spending, companies retrench, manufacturing falters, and employment dips. That is precisely what is happening now, and it points to a dangerous slowdown in the U.S. economy already grappling with the worst housing slide since the Great Depression.

"When gas prices hit $4 a gallon, you're going to see America come to a screeching halt because for two weeks, consumers aren't going to shop for anything except groceries," said Britt Beemer, head of America's Research Group, which surveys consumers on spending behaviour.

"Consumers are trying to figure out how they're going to manage the family budget when it costs $70, $80, $90 to fill up the tank of gas," he said.

uk.reuters.com
(visit the link for the full news article)

reply to post by DimensionalDetective


I don't know if you've heard about it, but I heard that the intention of these people in power is to drive gasoline to $15 per gallon. Well over $100 a barrel to ovee $200 a barrel. I've heard this from multiple sources of various varieties.

I've heard some people say that 300 bucks a barrel isn't exactly out of the question either. And they said it's normal supply and demand, such BS. They are trying to destroy America at the expense of you and me, and meanwhile they collect RECORD PROFITS.. IF THIS DOESN'T STINK OF CONSPIRACY!!!! I don't know what will.

You guys are lucky.

We're already paying GB£4.73 (US$9.36)/Gallon for Diesel and GB£4.31 (US$8.53) for premium unleaded.

Although we've always paid high prices so we're used to it I suppose. A lot is taxation, mind you.

Originally posted by stumason

We're already paying GB£4.73 (US$9.36)/Gallon for Diesel and GB£4.31 (US$8.53) for premium unleaded.

What I find staggering is the rate of the price increases. When I filled up last Sunday it was 121.9p / Litre at my local shell garage. When I topped up late last night it was already up to 126.9p.