I couldn’t find the word “inflation” anywhere in this thread about $4 gas, which is odd for this board.
We have a loose monetary policy right now, which is causing the dollar to plummet. Hence, the price of goods we import is skyrocketing.
Ideally: As gas prices rise and show no signs of stopping, people will abandon their Hummers and huge SUVs and switch to more fuel efficient compacts and sedans.
Worst Case: High energy prices will create a political will to shift more of our energy production needs back to coal, with little regard for environmental impact.
Of course, there are tons of other possibilities in there, but yeah, don’t expect energy prices to plummet too much in the future.
