I’ve been discussing how the price of Oil will eventually dampen consumer spending for over a year (and as recently as this week). Oil has finally started to show up as the proximate cause for many retailers weak numbers.

But to really get a sense of how its big its bite is, consider this table, via The Mess That Greenspan Made. Note that these fillups are at $2.70/Gal — and we’ve seen prices for premium over $3 on the East coast:
>

Cal_suv

Lastly, you may be wondering what Oil prices have to do with the Fed. After all, the source for this is a blog titled The Mess That Greenspan Made. Here is Tim’s explanation:

One of the most intriguing aspects of peak oil and its impact on oil and gasoline prices is the role of China and the U.S. Federal Reserve. It is clear that the monetary stimulus applied by the Fed since 2001 has had a large role in the economic boom in China and has resulted in a dramatic increase in oil consumption in that part of the world.

This increased demand is, to some degree, driving today’s oil price. Whenever peak oil does occur, it surely will be sooner than it otherwise would have been had U.S. monetary policy not so stimulated these economies half way around the world.

Did the Greenspan Fed cause $65 oil? No, but they sure haven’t helped to keep the price down.

Thanks, Tim — fascinating stuff.

>

Source:
The California SUV Fill Up Index
Tim Iacono
The Mess That Greenspan Made, Thursday, August 11, 2005
http://themessthatgreenspanmade.blogspot.com/2005/08/california-suv-fill-up-index.html

Category: Commodities, Psychology

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “California SUV Fill Up Index”

  1. dilbert dogbert says:

    Diesel here in the SF Bay Mid Pen is 3.10 a gallon. My Dodge 3500, one ton 4×4 dually with camper pulling a two horse trailer with horses, or without, 10 miles per gallon. Fillup tank 36 gallons. We will just keep taking money out of saving to keep on trucking. Been thinking about replacing the 36 with a 70 gallon tank.
    My 1990 Dodge Cummins 350 one ton 2×4 dually, bare with no payload gets 20 to 25 miles per gallon.
    When the oil runs out there will be a lot of horsemeat for sale. Cowmeat also when no one can’t pump water for the alfalfa and truck it around the state. Milk will be expensive and meat cheap.
    Interesting times.