Jason Rines (iThinkBig)

Oil Shocks, and What They Hold for the US Economy

1) Ummm, doesn't our government already tax gasoline? Then where are the alternative subsidies? Let me fill you in, these taxes were squandered and adding more tax to a gallon of fuel means more squandering. Put up the subsidy now for all energy options, alternative such as solar/wind/diodeisel AND traditional such as nuclear/coal/drilling. Phase 3 of green energy cannot exist until we add more of Phase 2. Reminds me of underpants knomes the enviro's are: "Phase 1, collect underpants, Phase 3 profits!"

2) Taxing gas upwards like the EU means the government subsidizes a lot more mass transit in short order. Shouldn't we be subsidizing energy sources, not more mass transit? I love being an American because I can drive my car wherever I want. Do I now have to wait for the American government to build me a train? So now we want to be like Europe a great socialistic paradise eh? Wonderful! Bring all our military home and let that great socialist paradise defend itself!

3) The USA's leadership needs a financial crisis to dry up the money or you could say bad government created the financial crisis which will rectify bad government the hard way or the not-so-hard way. Liquidity created very big globalization pipe dreams of our government, with the USA wishing to sit on top to tax the global citizen. Our free market entrepenuars created the Internet and gave it to the world to get information about a better way to live... Globalization on this level and with this approach created blowback and massive wealth transfer, with 297 M out of 300 M U.S. citizens the short end of the stick (minus a cheaper plasma or ipod, great thanks). All energy must be our motto and then investment further innovation. Any empire needs energy (romans had slaves) we have mainly oil, meaning we are becoming slaves to Russia, GCC, Iran etc.

4) The author is incorrect stating that other then consumer sentiment, there was no other fallout from the credit crisis, in other words a banking crisis. Credit lubing helped the Central and iBanks stay afloat, but in the downsteam, regional banks are getting creamed, jobs are being decimated and consumer credit tightened. Overvalued housing is deflating and will deflate to affordability based on median household income, so what happened to Joe's six packs ATM? Hard to pay the inflationary price on commodities and deal with us returning to the Save and Invest economy, now isn't it?

We have an inverted yield curve. How does the free market increasing the long-terms rates effect the consumer, does rising long-term rates make it easier to obtain a loan or service the debt or harder? Is that the "no fallout besides consumer sentiment?" you meant?

Consumer spending has increased! Yeah, on non-discretionary items such as energy and food. How do these higher priced consumables allow the nation as a whole to redeploy capital? That point I believe you do mention to a degree. Non-discretionary spending is going off a cliff and that was with the bailout package for consumers! That means a whole lot of enterprises going out of business.