The economy of the world runs on gas. If you doubt this just research the last fifty years of depressions, inflation, recessions and you will see the price of gas played the key role in those swings.

When fuel is low cost the businesses of the world are able to produce and ship goods. Raw materials are cheaper. Anything connected with crude oil is cheaper. But when the price of crude increases and drags the price of fuels higher, then production slows down. Raw materials increase in price. Just ask any trucker and you will hear that freight prices go p as fuel costs go up. Anything hauled by truck, train or ship costs more.

The runup to over four dollars this year proves the point. Even the price and availability of credit increased. The consumer - you amd I - put money into our gas tanks instead of purchasing other goods. We paid only the minimums on our credit cards. Some folks missed making their house payments. They had no money for anything but gas.

So, if the feds decide to up the tax on gas, get ready for spiraling prices. If a few oil tankers get blown out of the war by pirates or terrorists get ready to pay for gas through the nose.

NEW - Crude oil climbed to $70 a barrel today. This is what the Arabs were seeking as a minimum. The $2.50 you see at the gas pump will soon be a memory as we reach $3.00 per gallon by July 4th.  After that the economy is going to the bottom. More layoffs, more plant closing and a new round of food price increases.