Tuesday, December 16, 2008

Things Cost almost 2 percent less! Cost for gas decreases as less people have to drive to work, their homes!

So as the economy continues its epic implosion (explosion) there is a thin bright ray of good news piercing the otherwise bleak economic landscape. The consumer price index, which is a federal government synthesis of core goods and services, fell more than 1.7 percent.

And why?

"The overall slide in prices reflects the big drop in energy costs in recent months. After hitting a record at $147 per barrel in mid-July, crude oil has fallen by $100 per barrel since then, pushing down the price of gasoline from a record $4.11 per gallon in July to $1.34 in the most recent Energy Department survey."

So gas costs less. That sounds like good news. Not so! Says everyone who knows.

"Falling prices for goods and services might sound like a good thing for consumers, but a continued downward spiral can wreak economic havoc. During deflationary periods, companies earning less react by slowing production and cutting jobs, which causes consumers to scale back spending even more. The pattern is hard to stop because it feeds on itself."

And when was the last time deflation was a major problem? The Great Depression.

Happy free fall, fuckers.

1 comment:

3rdwheel said...

gas was $4 a gallon this summer because opec thought we could pay it. gas is under $2 a gallon now because opec knows we can't afford it. (especially with winter heating needs) anyone who pretends it's any less arbitrary in that is either lying or being lied to.