If government doesn't cut drastic boost of Gas prices, Harvey may trigger another Great Recession.

The Peace of God to all that belong to the Light,
Dear Readers,

Of course we are today extremely compelled for the terrible images of devastation in Texas, there is too much damage in order to be even in this moment valued with precision, but a gross calculation is around billions and thousands of lives.

please check
ktla.com...

With the refineries of the country so much damaged of course this is going to impact negatively many weak economies around the world, like Venezuela, Brazil, Argentine, but our major concerns now is what will happen to the American one.

please check:
ktla.com...

LANSING, Mich. - Rick Santorum said Monday that high gas prices sapped homeowners' ability to pay their mortgages and plunged the United States into recession, a far different reading of the causes of the recession than that of the economists who studied the crisis.

"We went into a recession in 2008 because of gasoline prices. The bubble burst in housing because people couldn't pay their mortgages because we're looking at $4 a gallon gasoline. And look at what happened, economic decline," Santorum said at a campaign stop.

Please check:
www.cbsnews.com...

The prices of gasoline have climbed almost 7% only during this weekend, this is gradually taken very similar form of what was Katrina, but even worst of the situation of gas prices of 2007 that broke the USA economy opening the door to the great recession.

Harvey send gasoline prices climbing hurting already weaken economies like Venezuela

In the context of the current mercantile economy that exist in the United States, in which all products are in some way traded from very long distances a drastic so fast increment in the prices of gasoline will boost a chain reaction of inflation along all the economy.

please check:
www.bostonglobe.com...

Wall Street Journal, Real time Economics, Justin Lahart:
In a paper presented at the Brookings Panel on Economic Activity Thursday, University of Calif.-San Diego economist James Hamilton crunched some numbers on how consumer spending responds to rising energy prices and came to a surprising result: Nearly all of last year’s economic downturn could be attributed to the oil price shock.

Pls check
blogs.wsj.com...

if strong regulation is not applied on time, and It is difficult to see how that can be, considering that the reduction of the production of gas is now huge and very real, not consequence of the speculations of the Iraq oil by bankers that occurred in 2007, the demand of good and services will be severely affected in all the sectors of the economy.

Please check
Measuring Negative Impact of Harvey on the Macroeconomy in America

More money to be paid in Gas means in just weeks from now less resources to have at hand to cover other needs of people that until the previous week were considered important but in days will look as luxurious or of secondary importance: like housing, fashion, education, entertainment, culture and of course to pay credit.

please check:
money.cnn.com...

This is just the beginning of the pains, we are going to have a better idea of the magnitude of the impact in the whole economy when sectors that are moved directly by the production of gas start to suffer the consequences of reduction in the supply and the new prices.

Pls check:
www.mcall.com...

For now it seems that the most prudent decision is that a national emergency must be declared the sooner the best, congress and federal administration must develop rapidly strategies to overcome the impact this so grave disaster, any delay increase the risk to go into recession in possibly one quarter or so.

Please check
www.bloomberg.com...

The current Federal administration must give priority to their plans to promote reindustrialization of the country, because this will soon make more expensive to import goods that can be made in America than to start to manufacture them here.

That is one of the strategies that may help to ameliorate the negative consequences of this disaster, but it is clear that industries like the automotive one are going to suffer a lot it does not matter where the cars are assembled, here or abroad.

Is this scenario remind us something? well we need to take action or we are going to repeat one of the most painful chapters of our History, one that ruined the lives and patrimony of millions of Americans in 2008:

NEW YORK (CNNMoney.com) -- Prices at the pump kept up their record-setting run overnight, a nationwide survey of gas station credit card swipes showed Thursday.

Regular unleaded remained at its record high price of $4.114 a gallon, according to a daily survey from motorist advocacy group AAA.

In the past year, gas prices have risen 35%. High fuel prices have caused Americans to limit vacation travel and cut back on driving.

Record high fuel prices have also been driving up the price of goods, adding to the pain felt by consumers. Retail prices jumped 5% on an annual basis in June, the largest rise since 1991 when fuel prices surged due to the first Gulf War.

Thanks for your attention,

The Angel of Lightness

originally posted by: The angel of light
...but even worst of the situation of gas prices of 2007 that broke the USA economy opening the door to the great recession.

Refined petroleum products were not related to credit default swap failure. The economic collapse was already occurring and Katrina happening or not wouldn't have stopped the process.

We are still in a depression so gas prices are the least of our worries. I'm willing to bet that You are one of the ones that actually believe the unemployment records.

Gasoline "price" is set by bid/ask quotes.

"People" bid what they are willing to pay.

Other "People" ask what they are willing to sell for.

Sometimes "Panic" is a driving force.

a reply to: The angel of light

LOL

Fuel prices rising after a hurricane won't trigger a recession. The most it will do is piss people off.

BTW, fuel prices normally go up, then eventually back down, after a disaster.

a reply to: AugustusMasonicus

Katrina was not the reason of that collapse, nothing has been said here about that, you are either misinterpreting my posts or so much misinformed about the causes of the great recession.

Please check:
money.howstuffworks.com...

The crisis that gradually led us to the great recession was boosted by the so high prices of gas in between mid 2007 to mid 2008 that were consequence not of any natural disaster, but by speculative maneuvers performed by bankers, like the JP Morgan chase group.

Economy, Steven Hansen, Contributor:
We went into a recession in 2008 because of gasoline prices. The bubble burst in housing because people couldn't pay their mortgages because they were looking at $4 a gallon gasoline.

Please check:
www.nasdaq.com...

Those so ambitious economic groups stored millions of tons of oil taken at relatively low prices in Iraq in giant tanks they rented in New York State instead to allow them to flow freely into the market. This increased artificially the prices of Gas that in a domino effect in the long run broke the entire economy.

Pls check:
money.howstuffworks.com...

Again, in a mercantile economy like the one globalization has imposed to us, all the goods and services depend a lot of the transportation costs, since nothing is really produced here but overseas.

The great recession was the consequence of the inability or lack of decision of the George W Bush administration to cut on time the escalation of the gas prices at that time, people became absolutely constrained in their domestic economies to face responsibilities acquired long time before that time, like for instance the long term credits, in particular for housing.

Adrian Hanni, Medium:
Bad loans, greedy bankers and a burst housing bubble: These factors caused in 2008 a devastating financial crisis, which engulfed the world economy in the abyss. That, at least, is the official story of the most serious economic downturn since the 1930s, whose effects are still noticeable today. Strangely, the decisive role that a scarce oil supply and exploding oil prices played at the forefront of the crash is excluded in most accounts. Largely misguided economic stimulus packages were the result.

Please check:
medium.com...@eselskind/the-great-recession-was-an-oil-crisis-4b0aafbd27f4

The Angel of Lightness

The Texas refineries won't be able to unload crude or crack into fuel for at least a year, maybe more....

Gas prices are going to sky rocket. If you know anything about investing, now is the time. Speculators are doing a happy dance!! I am.....

Brent crude will be $80 a brl by xmas....

originally posted by: jkm1864
We are still in a depression so gas prices are the least of our worries. I'm willing to bet that You are one of the ones that actually believe the unemployment records.

I'm willing to bet some on this site give stars to comments they don't necessarily comprehend, "but sounds about right" to reinforce their cognitive dissonance....subconsciously even..

I think it's a safe bet...

originally posted by: The angel of light
Katrina was not the reason of that collapse, nothing has been said here about that...

The great recession was the consequence of the inability or lack of decision of the George W Bush administration to cut on time the escalation of the gas prices at that time...

Contradict yourself much?

a reply to: The angel of light

Based on your logic, Europe should be in permanent recession because of 3 times higher prices of fuel ....

a reply to: AugustusMasonicus

There is No contradiction at all in None of my statements, again you are trying to get attention speaking of a topic really is not of your domain or maliciously misleading the readers and putting in my mouth your own obvious wrong points of view.

The increase of Gas prices has Nothing at all to do with Katrina disaster, since that natural event was not harassing refineries, as it is the case of Hurricane Harvey now, the two events are not the same as you pretend to portrait.

The only reason for which by mid 2008 we were paying more than 4 dollars per gallon of gas was due to the speculative maneuvers of irresponsible and evil bankers, in a market lacking of regulation, that decided to stock the oil that was coming from Iraq with the purpose to get what they thought it was an easy profit, instead to let it go freely in to the market at reasonable prices.

The Bush Administration tolerated for more than a year such criminal practices and in the consequence was an economic disaster that affected the entire nation.

Chris Isidore, CNN Money,
Unfortunately, one of the surest cures for high gas prices is a new recession. Few things cut demand, and prices, more surely. People lose jobs and don't have to commute. Drops in wealth kill plans for vacations and other discretionary travel. And with the drop in demand comes lower prices.
The record high for gas prices came on July 17, 2008, when a gallon of regular rose just above $4.11, according to motorist group AAA.
A little more than five months -- and one financial meltdown -- later, prices ended 2008 at $1.62 a gallon. With the economy on the brink of a new depression, no one was getting too excited about cheap gas.

Please check
money.cnn.com...

The Angel of Lightness

originally posted by: The angel of light
There is No contradiction at all in None of my statements, again you are trying to get attention speaking of a topic really is not of your domain or maliciously misleading the readers and putting in my mouth your own obvious wrong points of view.

You said it chiefy, not me.

Gas prices had nothing to do with the recession, that was all about credit default swaps so you may want to actually educate yourself on the subject before you make pronouncements.

May the Peace of Cthulhu be on you.

originally posted by: JanAmosComenius
a reply to: The angel of light

Based on your logic, Europe should be in permanent recession because of 3 times higher prices of fuel ....

Especially us in the UK. We're around £1.20 per litre (depending on where in the UK you are).

ETA: That would make us almost $5 a us gallon.

Gas prices are actually pretty steady in my area. It went up about 7 cents over the weekend, but that's normal. They fluctuate by around 10 cents on any given day, depending on what the next shipment is going to cost. These links are to prices in :

Carbondale Il
www.gasbuddy.com...

Terre Haute INdiana
www.gasbuddy.com...

Chicago
www.gasbuddy.com...

New York State
www.newyorkstategasprices.com...

Although prices in New York have jumped by over $1 in the last 24 hours, I don't think it's time to panic just yet.

When fuel prices increase, and they will, every product that needs to be trucked in will also increase in price.

Hyperinflation here we come... If you know the system it will be in your favor. If you don't....to bad for you~!

Harvey will wreak havoc for years....Time for the real capitalist to rawwwkkkk.

I thought all our reserves have been full now for a year or two ?

a reply to: AugustusMasonicus

I am sorry but I am not going to discuss more with you knowing that for the caliber of your replies it is evident this neither your subject nor your topic. Besides it, this is not a contest of egos, but a thread of actual knowledge.

I respectfully suggest you to attend some good course on macroeconomics in some reputable university since you need urgently it, that is better than to continue compulsively supporting opinions that are not based in any logic at all.

I have explained my point not based not just only on my personal opinion but in serious references taken from trustable sources.

James Hamilton, Professor of Economics University of California,
The implication that almost all of the downturn of 2008 could be attributed to the oil shock is a stronger conclusion than emerged from any of the other models surveyed in my Brookings paper, and it is a conclusion that I don't fully believe myself. Unquestionably, there were other very important shocks hitting the economy in 2007-08, most notably the problems in the housing sector. But housing had already been subtracting 0.94% from the average annual GDP growth rate over 2006:Q4-2007:Q3, when the economy did not appear to be in a recession. And housing subtracted only 0.89% over 2007:Q4-2008:Q3, when we now say that the economy was in recession. Something in addition to housing began to drag the economy down over the later period, and all the calculations in the paper support the conclusion that oil prices were an important factor in turning that slowdown into a recession.

please check
voxeu.org...

The Angel of Lightness

originally posted by: The angel of light
I am sorry but I am not going to discuss more with you knowing that for the caliber of your replies it is evident this neither your subject nor your topic. Besides it, this is not a contest of egos, but a thread of actual knowledge.

If were about 'actual knowledge' you wouldn't have conflated Katrina and the credit default economic collapse. You obviously don't understand the topic at all but are trying to pass off yourself as some sort of expert on the subject when you are far from that based on your incorrect proclamations (which you later tried to back pedal out of).


May the Peace of Nyarlathotep be upon you.

a reply to: The angel of light

So forget about the housing bubble and household debt? It was mainly down to fuel prices?

You really need to read up on the subject before you comment any further. You're just making yourself look silly.