UPDATE: OIL HIT A 59 MONTH HIGH THIS MORNING. DETAILS WILL NOT BE REPORTED ON CNBC OR ANY OTHER MSM OUTLET.
ASSUME THE POSITION
As the nattering idiots on CNBC gush about the new all-time stock market high benefiting the .1%, the peasants are left to pump more of their paycheck into their gas tank. Oil prices hit $108 per barrel today. The last time they were this high was the spring of 2011, when national gas prices reached $3.91 per gallon. Gas prices have risen 6% in the last eleven days. They are headed dramatically higher. That non-existent inflation that Bernanke lies about in front of Congress seems to be affecting the lords of the manor and the serfs. The lords of the manor on Wall Street are rolling in the Bernanke created stock market inflation. The serfs are further enslaved in the energy and food inflation created by Ben’s “not literal” money printing.
The price of a gallon of gas in Chicago is already $4.20 per gallon. In Los Angeles it is $4.10 per gallon. The average in the country is headed to $4.00 by Labor Day, even if there are no hurricanes in the Gulf or new conflict in the Middle East. If oil rises above $109 per barrel, we are back in 2008 Crash territory. The country is already in recession, so this energy shock will do wonders for the consumer, that accounts for 71% of GDP.
Restaurant sales are already in freefall as consumers were already being crushed by negative real wage growth, higher payroll, income, sales and real estate taxes. The surge in gas prices didn’t even begin until July 7. I wonder whether the average serf will choose to fill up their SUV so they can drive to their part-time Chick-Fil-A job or go to Applebees for their 2 for $20 special? The chasm between the haves and have nots grows wider by the day.
How long before the serfs finally rise up and storm the manor?