There are some key facts that people should realize about the price of oil and gasoline...

On an inflation adjusted basis, we are paying less for oil and gas now than we were in the 1980's and 1990's.

How could that be, you say? Oil is and has been priced in U.S. dollars for decades. So when the value of the dollar goes down, as it has pretty dramatically in the last decade or so, then in order to keep the price of oil at the same level, the price per barrel in U.S. dollars has to go up.

Take a look at the following chart showing the inflation adjusted price of oil. We're better off in 2008 than we were 20-30 yeas ago. That is, the price of oil, gas and petroleum products is a smaller proportion of average household income than it was back then.

This is not "figures don't lie but liars figure" folks. These are the facts. But the politicians are the ones whipping us all into a frenzy about the price of gasoline. Maybe we should all calm down and make an attempt to understand the economics.

Here's the chart...

however it isn't the high price that will break us we have shown over the years we accommodate where ever the price goes (up) to....

the bigger issue of course is being tied to a single source. Never a good idea as proven in many a corporate scenario. How we allowed this for so many years is amazing...or maybe not on the basis of politicians being the architects.

The prospect of what will happen to this country when the oil supply is interrupted will make today's financial crisis pale by comparison. And it will happen one day in our futures.

Yet the problem still has not achieved the priority of lessor significant threats to our way of life.

Just think what would happen if the oil supply was interrupted while in our present situation.

Unfortunately as all the political pundits not too excited about energy independence always say,,, it is at least 10 years away....well by then it may not be necessary.

BTK

Oil at $40/bbl would be a good goal;and gas at $1.25/gal (Today's $$$). The strength of the USD vs Euro is important. No real reason our currency shouldn't be valued as good as the Euro. It was shortly after the Euro start.
Need to get more of the speculation out of the system (but not all, of course).

Or..... what about Price of Bushel of Wheat = Gallon of Gas. (I think there was a "Robin Williams" e-mail that circulated this summer to that effect)

Let's give the Candidates something to strive for.