Not just Gas Prices. But everything Else is EFFECTED.

["Thomas, Nathan" <nthomas@imps0014.us.dg.com>]

Jason C said:

>*This is just my "PERSONAL THOUGHTS" about this gas price matter.  Basically, 
>don't bite my head off....=) *

>For years now, the US has been "contolling" the Oil market, trying to keep it 
>down.  But recently it has risen and I guess we have to pay for the higher 
>prices.  But the govt doesn't care about how much you pay for GAS.  It will 
>hurt the ENTIRE market in general.  
>So what does all this mean?  Simple...Its not about the prices of gas anymore 
>There is a bigger picture to this.  I foresee a recession, if the prices 
>continue to go up.  Nothing I or we can do about it.  Just brace yourself.  =)

>Jason C
>89 200t10v
>Redmond WA


Yes, it is in fact true that the oil companies will be _burning_ all the money they
get from the sale of oil this year.  None of the profits they garner will be reinvested
either in wages, r&d, real estate, facilities, investments, or spent in any way shape
or form.  This continual draw of money away from the rest of the 'real' world and into 
the black hole of oil companies will cause a global recession.

As you say, "There is a bigger picture to this"...for every thing that gets more 
expensive due to higher oil costs, someone is making more money, and, per
Reaganomics, it will trickle down through the economy in one way or another.
Certainly, the economy is not a zero-sum game, and there are considerations
as far as international borders, but it is basically true that money doesn't just
disappear on the whole- it finds it's way back into the free market in another form.
Economics is not my forte, but it seems obvious to me that just because gas
prices go up a couple of dimes we aren't necessarilly going to spiral into a 
recession.  People have been predicting 'The Coming Economic Disaster' for
a long time now, and we just keep riding upwards.  Yes, it's a little be scary
from this high up, and it is easy to think, "odds favor a downturn after this much
of a rise", but economics is not subject to the laws of averages- it's subject to
human intervention and meddling.  For all I know, if the gas prices had continued
to be as low as they were, it would have forced some of the oil companies to
merge and layoff workers, and _that_ would have led to an economic downturn...
I wouldn't sweat higher gas prices just yet.  Wait till we see more indicators,
like higher inflation and unemployment before you let yourself be sucked into
praying on the fears of the masses.

nate