Tuesday, January 24, 2012

EU Put Oil Embargo on Iran! Gas Prices Are Hurting Us

By Reginald Kaigler (DEMCAD)

Remember that January 23rd date I warned you about? Well, diplomats of the European Union meet on that critical day and decided not only freeze the assets of Iran's central bank, but place an embargo on Iran's oil. Many southern European countries buy oil from Iran. Iran's top exports are China (20%), Japan (17%), India (16%), Italy (10%) and South Korea (9%). The EU claims that they are doing this to stop Iran's nuclear program, but I think it's clear that Iran is being backed into a corner. If Iran responds by closing the Straits of Hormuz, the price of oil is going to shoot up to the moon.

I'm embarrassed to admit that today I was walking through the Mott neighborhood with plastic gas can. My van has ran out of gas and I couldn't even get to out of my driveway. After collecting my quarters, dimes and nickels, I bought $5.30 worth of gas. When I arrived at my house, the 1.5 gallons wasn't even enough to get that big van going. It's plenty funny, but kinda pathetic.

I think I'm going to stop paying insurance and stop driving. The insurance company claimed that the reason why no-fault insurance increased by 30% is because of the number of new claims in my zip code. But it's bizarre, because everywhere I go, I keep seeing the number 30 pop up. The water company in my hometown of Flint, Michigan recently warned us that the price would be going up by 30%. I've also noticed that a lot of the food items have increased by about 30% in the last year.

If there's a war with Iran, I think we're going to see gas prices hit an average of $5 per gallon. It's already hovering around 3.50 (3.35-3.60) in economically depressed Flint, Michigan. This is going to end very badly.

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