With gas prices breaking the $4 barrier across nearly the whole country and food prices skyrocketing in response - what is next? When Katrina hit - we knew gas prices would jump - so much of our oil production is in the gulf of Mexico that it didn't take a genius to see what would happen. Gas prices jumped to $3+ and once oil production got underway, they dropped back. No one was happy about it but we understood. Now with $3 a gallon gas a fond memory of the "good ole days" - no one is bothering to to make excuses about why gas is going up up up... no one is making predictions about when it will go back down - if it indeed ever does.
So now what happens? Food prices go up because the trucking industry has got to keep up with rising fuel costs. People that were just barely making ends meet are totally screwed. They need gas to get to work, they need food to feed, cloth and house their families. I suspect we are going to start seeing more extended families living under the same roof for one thing. There will be an increase in cheap transportation - from public transportation to bikes, motorcycles and scooters. Already Aldi is seeing drastic increases in sales - so we're going from name brands being priority to just getting as much food for our money as we can. The fastest growing segment of crime? Stealing food.
More long term effects - people that were doing okay but not great. If they have been putting money in their 401k - they will stop doing that. You can't save for retirement at the expense of feeding your family. What about people with adjustable rate mortgages? Ouch! They are getting a serious double whammy. Not only are they paying more for everything else - but their house payments are going up. So the housing market drops and suddenly people are trapped upside down in mortgages they can't get out of. What do they do?
Where does it end? It depends on why this is happening. Is it political? I'm serious - we are in a presidential election year and in the middle of what looks like an artificial inflation in gas prices with it's ever expanding ripple effect. Who will ride in and save the day? Will it be just prior to the election? If so - who gets the great PR for saving the day? Never mind that it smells like a setup and mostly likely whoever does save the day was guilty in the first place. Just like any good TV detective will tell you - you have to follow the money. Who stands to profit most? Who has the means to pull off something like this? I don't have any answers but I'm thinking if we pay attention - we'll be able to get a pretty good idea...
In the mean time - stock up on long shelf life food. If your not already budget consious - get that way. Start thinking and planning ahead because in spite of what I said about when will this end - I doubt it will just poof away overnight. There are pretty fair odds that we are in for some tough times for a while here. If you have extra - please - support your local food pantries. With it being summer - be aware of your elderly neighbors - especially if they are on fixed incomes. They most likely can't afford to run their AC even if they have it. It's time to stop focusing on "me" and start working together and taking care of each other.
Peace,
Carol
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Don't forget items like: start a garden and buy locally (there is no transportation costs.)
ReplyDeleteIf you can't earn more, spend less.
Cut down on electrical costs by closing your drapes during the day to keep the heat of the sun out of the house (invest in black-out shades for the sunniest windows), move the a/c up a degree or two - or turn it to a high temp and use more fans, hang your laundry to dry, unplug items when not in use (or use a power strip and turn that off when not in use,) switch out light bulbs for the newer more efficient bulbs.
Save money on water (which eventually cuts down on sewer expenses): collect rain water for plant watering, skip-a-flush, use a low-flow shower head.