The Billiken's Bluff

It's not a spike in gasoline prices, it's more like a high-voltage electric blast sparking into a pool of gasoline and exploding in a fiery blaze. That's what the jump in gas prices has felt like - to me.



I feel like suddenly I can see macroeconomics happening. The big picture. World-wide demand for fuel increases as nations like China and India use more petroleum for industrial and consumer consumption. Couple this with a natural disaster in the Gulf of Mexico that closes oil refineries in the USA. This causes gasoline prices to increase dramatically, (over 25% in two days!). Motorists use their car less. Some people who rely on their cars/trucks for business, still have to drive. Vendors like these pass along their increase in production/travel costs to companies like mine. We, in turn, raise the prices on our product to compensate, to maintain our margin of profit. The consumer has to pay more for our product. They purchase less. Spending decreases. The economy slows. A recession.

Or something like that.

All I know is that 5 years ago gas was $1.15 per gallon. I would hand a gas station attendant (it was full-service back then, no need to save a few cents and self-serve) a $20, ask him to fill up my car and he would hand me back change ($5 in change).

6 weeks ago gas was $2.50 a gallon and it cost me $38 to fill up my car. I thought this was outrageous and went on a Billiken rant about gas prices and hybrid cars and the Jetsons.

Five days ago gas was $2.64 per gallon and I decided to only fill up my tank two-thirds of the way.

And today gas reached $3.59 a gallon for regular unleaded in Flushing, Queens.

That shit is nervous.