Monday, May 2, 2011

Gasoline Soars Toward New Highs

Oil crossed $115 this morning before a retracement this afternoon.  This new high gives us a chance to look at where the price of gasoline today stands compared to the all time record high back in the summer of 2008.

As you can see, we are just pennies away now....

This will continue to put pressure on Bernanke to keep his promise of no QE3.  Our leaders have done nothing to slow down federal spending and are just pushing down firmer on the accelerator.

If buyers do shun treasuries after QE2 as the market is left vulnerable without the $4.1 billion per day of new Fed purchases, it puts the Federal Reserve in a tough position as gas is crossing over to new record high prices.

This is our first glimpse of what the end game will look like in America: spiraling upward cost of living combined with a deteriorating economy.

In other words; the worst possible scenario.  The 40 year debt laden binge spending party has been a glorious ride, and it will certainly be a less painful transition for those taking the proper steps to prepare today.