Place Your Bets - Oil at $200 a Barrel?!
Well kids, as you may know, I'm a bit of a pessimist. As much as I would love to look at the glass as "half full", due to the nature of this blog - or rather, the subject - it is impossible to view the glass as anything but not only empty but smashed to bits.
So in the spirit of keeping my depressing viewpoint as hopeless as ever, and due to a few conversations I've had with the Twitterati, I'm taking bets on projections for early 2009 gas prices.
On December 17th, OPEC announced its largest production cut in history, vowing to cut its output by 2.2 million barrels per day. The logic behind this move is understandable as oil teetered at >$40 a barrel, however, initial reaction to the cut was not what OPEC had been banking on. Surely it takes more than a couple days to send prices back up to the financial assrape levels we'd seen over the summer.
What OPEC didn't take into consideration, of course, is that you cannot fuck with people indefinitely. The average person will only allow you to screw them over for a certain amount of time before they buck up and say enough is enough. The free market, though damaged by the hallucinatory "cash injection" dope on behalf of #1 pushers Bernaulson, has spoken. People learned taking public transportation or downsizing to something more reasonable than a Hummer isn't as bad as they thought it would be; now that we've adjusted to life without an oil IV, OPEC is panicking. As they rightly should be.
Now if everything goes according to Bernaulson's evil little plan, the FAILout money will create liquidity which will create lending which will create consumption which will start the whole game all over again. Which will lead, inevitably, right back to where we are today. But that's irrelevant. Mostly because we all know their plan isn't exactly working out. If Bernaulson has its way, no one will notice how bad things are and will gladly fork over $4 a gallon.
So let the bets begin!
I'm willing to wager that we'll be back up to at least $3/gallon nationally by summer. This is merely a projection and let's all keep in mind that I am not a free market "expert" nor an "economist" nor a "psychic" so I'm just taking a stab in the dark.
Of course we're all broke so there is no money involved but I'd like to hear from you (yes, YOU TOO, Jr Deputy Stalker! I see you reading my blog!) - up or down? In June we'll take a look at the comments and see who gets to wear the "Honorary Miss Cleo" hat for their exceptional "looking forward into the future" skills!
p.s. There is a PRIZE to be had (determined by me and dependent on whether or not we are in a state of full chaos and anarchy by the time we shuffle boldly towards Summer of 09)!