Conversely, lets suppose that liquid-fuel-hungry US and Chinese and Brazilian economies strengthen this summer. US liquid fuel prices, driven by growing global demand, would rise. Voters would be looking for a scapegoat, having even less money left from their pay. Will they blame oil companies, the Obama Administration, ‘furniners,’ or all of the above? Hard to say isn’t it?
One question for or Treehugging global commodities expert; why are US liquid fuel prices (i.e. gasoline) rising while demand within the United States has been nose-diving for several years?
The answer is we are seeing inflation (due to ‘Quantitative Easing’- printing of money) rather than any effect of global demand or the effects of oil scarcity.
Of course, our Treehugging global commodities expert thinks this inflation is a good thing.
Volatile gas prices would be a good thing.
High price variability at the pump from now on in to the fall election would be the best thing there is for the environment and public health. People who have no grasp of the fact that fuel prices are driven by global supply and global demand would figure that the free market is not going to fix this one. Given the choice between buying a fuel efficient car or not, more Americans would opt for individual responsibility and get the efficient model.
Sure, it will be great for ‘environment’ that our entire economy collapses. Because, our Treehugging global commodities expert is forgetting, our entire economy is based on energy. And when energy gets expensive, everything else becomes expensive. Roll the expensive energy back into our economy that is already under inflationary pressure and we have a recipe for economic hardship for a long time to come.
Of course our Treehugging global commodities expert will be happy with no economic activity– because he will think this is good for ‘the environment.’
Except, as pointed out numerous times here at MCT, only wealthy countries can worry about the environment.