Quote:
Originally Posted by xoxoxoBruce
They left off the cost of petroleum based fertilizer.
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Those (ie the president) who deny oil prices are harming the economy also claim that this country is no longer as dependent on oil as it once was. Well, America almost never imported 50% of its oil until Nam. Those massive oil price increases causes little economic disruption for years. So again, we deny high oil prices will cause massive disruptions - still make vehicles so stupidly as to still have V-8 engines. The V-8 engine in any car is a benchmark in stupidity.
Just about everything is dependent on oil - even meat. So we have yet to see the real price increases. Let's see. Oil prices increased from $10 to $120 per barrel. Did your gas costs increase from $1.20 to $14.40 per gallon? Has your electric bill increased by a 10 factor? No. But parts that increase cost of energy have not yet been replaced, expanded, upgraded, or manufactured yet. Those numerous hidden costs, well, another example of spread sheets measuring the actual cost 4 to 10 years later.
Order everyone to replace their front lawns annually, and everyone will be richer - for a while. Four to ten years later, the resulting economic recession arrives when all those new lawns finally start to appear on spread sheets as no return on investment.
Largest SUV sales did not increase this quarter for the first time. IOW oil price is finally beginning to have some productive effects. Price finally has attacked the emotions of those who have been so in denial about as to threaten this nation's security, wealth, jobs, standard of living, etc. Those who kept saying make more crappy, inefficient and less safe products, blame the unions, blame foreigners, blame taxes, blame immigrants, blame all Muslims, blame myths about global warming, blame the French, etc are finally being hurt enough as to be forced to make intelligent decisions. Unfortunately their outright denial has been too long. Still, economic pain due to those denials is still to come. We have yet to see the many price increases and feel the pain made necessary due to higher oil prices.
Yes, higher fertilizer costs will be only one of so many punishments that have not yet appeared on economic spread sheets. Even true costs misguided ethanol production has yet to be felt.