Gas Prices Were An Economic Indicator

In the past few years (2005-2008) we have seen the price of gas skyrocket to $4+ a gallon as the oil companies were taking record profits and giving billion dollar bonuses to there executives. By itself a company making a profit is not such a strange thing. But when one looks at the economy now and see the federal government bailing out "private" industry, one must ask how long has this economic disaster been known about by those economist that work for these corporate leviathans and the federal government.

It would appear they have known for several years that this global fiat financial system was collapsing, but could do nothing to effect a better outcome. Instead the oil companies just started to take profits. The unfortunate side effect was the auto industry going out of business... without another GOV bailout that is.

It seems to me a bit strange that the oil companies would put there good friends in Detroit out of business. After all they have a semi-symbiotic relationship. The auto industry and oil companies have always been partners why would they destroy such a relationship?

The answer seems to be that these economists have known of the collapse for some time and planned the profit taking of the gas industry at the expense of thier good friends in the auto industry. The auto industry is too big to fail due to the amount of Americans it employs and so they would be able to get a bailout.

If one makes the argument that the car companies went out of business due to they were making gas guzzling SUVs. I have to point out we were preparing for war with Iraq since the Clinton administration (1998 via a Team B report. Team B was founded in the 70s and included such 'luminaries' as Daniel Pearl, Donald Rumsfeld, Paul Wolfowitz and several others.)

This war prep was going to have to include making some heavy vehicles to wage war in, and a small car factory would be hard to retool into a Hummer factory. So they were only making these vehicles to assure Gov. contracts for war vehicles.

So will the bailout happen? Yes.

But I do not believe it matter very much. I see the above as an indicator of the state of the American economy. After all I don't see these corporations purposefully burning down the house they live in unless it is a last resort.

So do the oil companies, and large corporations, see the end of American economic strength? Are they just doing what they can to amass wealth before it is all worth less... or nothing? Are we going the way of Mexico?