Thursday, April 8, 2010
This is a milestone of sorts, until a new record-setting price inevitably appears as a result of the accommodative monetary policies of the worlds' central banks and the global mania for curbing carbon emissions. Gasoline has now hit $9 a gallon in parts of the U.K. Can U.S. consumers even imagine a price that high? It wouldn't be too hard to achieve, given the weakness in the dollar, the Fed's super-accommodative monetary policy, the renewed push for a cap and trade regime or a carbon tax to reduce hydrocarbon fuel usage, and the rising ethanol requirements (ethanol being a less efficient fuel).
Posted by Scott Grannis at 10:58 PM