Peak Oil Effects Rippling Through US Economy
Posted by Big Gav
GNN has a story (originally from the Christian Science Monitor, who didn't link oil prices to peak oil) about the latest oil price rises rippling through the US economy. Its going to be interesting watching the inflation figures coming out over the next 6 months.
And though prices have eased in recent days, they remain well above $50 a barrel, and many expect them to stay high. So air travelers on international routes are now seeing huge fuel surcharges, the cost of a bunch of grapes is up a few cents, and economists expect to see costs increase on an array of manufactured goods from televisions to toasters.
“The true cost of energy is now being felt more broadly through the entire economy,” says Mark Routt, a senior consultant at Energy Security Analysis, Inc., in Wakefield, Mass.
The reason, according to Mr. Routt, is what he calls the “tale of two economies.” Most consumers focus on gas prices and the impact on their wallets. But diesel, which fuels truckers and some manufacturers, has gone up just as fast, and in some cases, gone higher. Thanks to that competition for consumers, combined with the concurrent growth of cheap imports, most people have so far been sheltered from that impact.
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