"Gasoline Prices will hit $8.00 a gallon by Memorial Day, 2009."
I've made this prediction in the comments sections of several of my favorite Blog Sites, but I thought I ought to lock it in here. I don't make this prediction lightly.
I am prompted to enshrine this prediction by the Democrats blocking the Republican backed "American Made Energy Package" in Congress today without allowing it to go to the floor for amendments or come up for a vote. The blockage in committee was strictly along party lines. And the blockage was block headed. This measure can, should, must (and eventually will) pass.
Things are about to get worse. Frankly, if Barack Obama wins the Presidency (which I have firmly predicted on this website here), I think we could see much higher prices. A McCain Presidency (unlikely as that might be) will still lock in $8.00 plus by June 1, 2009.
Make no mistake about it, this is a disaster that will throw the United States into depression. If Obama is elected and IF he implements the massive tax increases he has outlined, he'll be the most spectacular one term wonder in US history. However, I'll bet he tones down the tax increases once he is actually in office.
The disastrous political posturing going on in Congress (and by both parties) spells doom for the United States in terms of oil prices. Republicans want one set of actions (all of which are excellent and much needed), Democrats want another set (many of which are also excellent and much needed). As a result, nothing will happen at all except for the insanely stupid moratorium in adding oil to the national reserves.
In short we've taken the only step that hurts our country, but fails to make a dent in the price of oil.
Look at today's headlines:
Stocks fall sharply as oil prices surge
Oil may peak at $150-170 soon: Commerzbank
Oil-price meeting to involve heads of state: OPEC chief
U.S. corn soars to record "Corn prices on the Chicago Board of Trade have surged 80 percent over the past year, with nearly 17 percent of that tacked on just this month."
A deadly combination of environmentalists (who fight every possible energy source from coal, to oil to nuclear to wind to....), politicians (pandering for votes instead of solving problems), lobbyists (purchasing the finest Congress money can buy), futures traders (who are getting very, very rich) and oil producing nations, are effectively creating deadlock.
Drill in Anwar? Not a chance.
Build new refineries? Not in our backyard!
Build or even upgrade a nuclear power plant? Never!!
Raise Automobile Mileage Standards? Not if the cabal of Republicans plus the Democrat Representatives in Michigan have any say?
When the market crashes (it was down another whopping 200 points today) and food prices skyrocket, the public will want to blame someone. And heads will roll.
This will be the number one issue in the upcoming election. And because of the election, absolutely NOTHING will be done to avert the crisis.