Professor Mark J. Perry's Blog for Economics and Finance
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Monday, May 23, 2011
Gas Prices Lower TodayThan a Month Ago
The chart above from GasBuddy.com shows that the national average gas price of $3.83 per gallon today (May 23) is slightly below the price a month ago of $3.84 on April 24.
Yep, we went from 3%+ Economic Growth at the beginning of January to, basically, "flat."
And, our reward is $3.83/gal gasoline.
Look at the end of 2007, early 2008; when gasoline goes over $3.50 the economy starts slowing. When it goes over $4.00 we're through.
The "Oh S..t" moment will be when we drop into recession, and gasoline Does Not go below $3.50. Not saying it'll be "this time," but it will happen, eventually. Could be next time.
Let me posit, this: We should no longer be looking for the "perfect" mitigation, or even a really, super-duper great mitigaion. We better be looking for the "Fastest" mitigation; because, the fact is, they All will require several(in some cases, many,) years.
Yay. Obama has saved us.
ReplyDelete/sarc
Interesting that the feds did not tap the U.S. strategic oil reserves. This was the recommendation by many econ pundits, to skew supply and demand.
ReplyDeleteYep, we went from 3%+ Economic Growth at the beginning of January to, basically, "flat."
ReplyDeleteAnd, our reward is $3.83/gal gasoline.
Look at the end of 2007, early 2008; when gasoline goes over $3.50 the economy starts slowing. When it goes over $4.00 we're through.
The "Oh S..t" moment will be when we drop into recession, and gasoline Does Not go below $3.50. Not saying it'll be "this time," but it will happen, eventually. Could be next time.
Let me posit, this: We should no longer be looking for the "perfect" mitigation, or even a really, super-duper great mitigaion. We better be looking for the "Fastest" mitigation; because, the fact is, they All will require several(in some cases, many,) years.
You're welcome!
ReplyDeleteRobert Mundell, a big conservative monetarist, is now talking deflation.
ReplyDeletehttp://online.wsj.com/article/SB10001424052748704816604576335250426158790.html?mod=googlenews_wsj
Mundell won a Nobel Prize, and might--just might--not be fooled by a phoney CP.
Deflation, at a time when we, seriously, need to "grow the economy:"
ReplyDeleteIt doesn't get any scarier than that.
Rufus: Why fear? It means the Fed has the field wide open to go to QE3, and start charging interest on reserves, instead of paying.
ReplyDeleteThe right-wing has lost its marbles, when they call for tight money in a deflationary environment.
Oil tanking today, btw.
What it means is that the Fed has lease to start a boom, and no worries about inflation.
The fear is that Bernanke is quaver.