ON the Early Morning Show, there were two guy's that did a video cartoon on how gas is charged up to it's current costs. The part that got me was what it costs per gallon starting with just plain crude
oil from the ground: $0.05.
It just get's barreled up and sent overseas. Somewhere bewteen the Middle East and our refineries, it goes up $3.30. Then all these costs go in to produce the $4/gallon we're seeing today.
What the $3.30 is , are speculators on what the cost "should" be based on several factors, such as geo-political issues, the weakening U.S. dollar, and of course, supply and demand.
I think the recession has already started but the reality will hit home on Independence Day when $5/gallon is predicted to hit...ironic timing, considering we "depend" so much on a country so far away... I'm with the guy in VA, let's start charging those we are protecting. (However, that could backfire and suddenly, we're replaced by the Chinese military!!!!)