Will $200 dollar a barrel oil matter?

Remember when oil: $28 dollars a barrel? Hey, that was way back in 2000, long before 9/11, the Iraq War and $100,000 dollar houses turned into Million dollar houses. Yep, long before Derivatives and Hedge Funds all became the rage. In those days, we had a healthy Enron, WorldCom and General Motors! In those days, we had just experienced the great fall of the Asian Tiger Economies. Japan was in rock n’ roll heaven! They were really hurtin! South Korea was still hanging in there, but their dream of a reunification with North Korea..became a lost dream. They just didn’t have the cash on hand…that the German Republic was able to put together to rebuild the DDR – East Germany! These were moments in time! The giant dam in India that Enron was funding with World Bank money and paying off Indian politicians….became just a short term set-back! The whole shooting match wound up costing the United States Government about $4 Billion dollars ….for nothing!

OK, today….Brett Farve retired! He did what he set out to do: Break all of Dan Marino’s records! He now can go on Inside the NFL, become a great play by play announcer and enjoy “Cow tipping” in greater Green Bay, Wisconsin during those long summer nights! Driving his tractor, may become more expensive. Brett has just caught on….that his retirement fund is not exactly as big as it might need to be. Great Financial Mogul Warren Buffett has declared the US Economy in recession and retreat! We have been saying this for several months…but now Mr. Buffett even thinks so. What next Ben Stein? We would be too honored!

At any rate, the prices for energy …for everything from gas at the pump, natural gas, to electricity, to corn, to soy, to wheat, to beef, to pork, to chicken, to cooking oil, to butter, to popcorn, are all set to skyrocket! Why? Because getting goods to market is going to cost a lot more! It is at this point you might want to rent the Robert Redford movie “Three Days of the Condor”. Arguably, one of the finest movies ever made! We won’t ruin the punch line for you….but you might, kind of understand, a little more about our US Economy!

What has happened that could have possibly raised the cost of a barrel of oil to over four times that cost just eight years ago? How about the huge build out and development of American Real Estate since 2000? How about the huge build out and development of China, India and the European Union? More people wanting the same amount of goods causes the price to go up…until someone says “Uncle”. Those huge build-outs have raised demand for automobiles, tractors, trucks and the high cost of electricity throughout the world. We are no longer “alone with our opulence”! We are in a very competitive world that is going to continue to be so…because: Oil companies want to make more money every year…not less. Governments wants us to pay more taxes on that energy….every year…not less. Auto manufacturers want to create more vehicles that will become obsolete …. faster and faster….so they can build more! Politicians will want us to consume more and more so they can blame someone else for sending our jobs to low wage countries that build and manufacturer our goods and services. Right now, Diagnosis, Medical Charts, X-Rays and MRI’s are being read and analyzed by Physicians and Radiologists in Bangalore, India. Do we really believe that if we get National Healthcare….any of that will change?

What will happen when a barrel of oil goes to $200 dollars? Imagine, a gallon of gas at $8 dollars. Imagine doubling your energy bills on a monthly basis. Imagine, the doubling cost of all food and perishable goods from what they are now. When do you think this might happen? Never? In six months? In a year? In four years? Does any of that matter? Obviously, the people with lots of cash….are not going to care much…one way or the other. Maybe, those on fixed income, seniors, low end wage earners and the poor….will feel it most. Does any of it matter? Is it just the way life goes?

At any rate, we have a few months before we elect a new President. Wouldn’t it be interesting to hear their views on these issues? Wouldn’t it be important for the major media to actually say to the big three:
Obama, Hillary & McCain: “What are you going to do about it?”

About Ron & Anna Winship

Independent News Producers/Writers and Directors for Parker-Longbow Productions. Independent Programming which includes a broad variety of Political, Entertainment and Professional Personalities. Cutting Edge - a talk show...is the flagship of over 30 URL websites developed or under development. The Winships have been blogging for the Orange Juice since back when nickels had buffalos on them, and men wore onions attached to their belts, because it was the fashion back then.