Just in case no one else has noticed, allow me to point out the obvious: gasoline and diesel prices have been going up lately. This leads me to make a couple of observations.
First, what has happened to Big Media? During a previous presidential administration (the one between Democrat regimes), any rise in the price of gasoline was heralded by headlines trumpeting the collusion of Big Oil and government. Price increases were always nothing more than a plot to further line the pockets of Dick Cheney and a certain Texas oilman. Price fluctuations never had anything to do with market forces.
So be it. So where are the Big Media headlines today? In the past year, the price of gasoline across the nation has increased 15%. In my local Midwest region, the increase has been 16%. Diesel has seen a 17% price increase.
Increases like that should be causing liberal apoplectic seizures across the nation. Yet, they pale in comparison to the price hikes of gasoline and diesel since the beginning of the current administration: 80% increase for the national average price of gasoline; 79% increase in the Midwest; and a 33% hike for diesel. Apparently, Big Media doesn't use gasoline anymore.
Second, these prices have gone up in what is normally a lower demand season of the cycle. We normally experience higher gasoline prices during the summer driving season due to higher demand and the more expensive summer blends. This year, though, the current December price beats the average price per gallon in both July and August. What gives?
Well, at least a couple of things. Global demand is increasing. Nations that used to be mired in near hopeless economies are emerging (primarily because they are adopting more free market approaches). As they do, demand for all commodities is moving steadily upward. As demand increases, we can expect prices to be moving up, too.
The other force affecting gasoline price is government-induced inflation.
In spite of the Obama-Bernanke minions' denial that there is any inflationary pressure coming from the government buyback of its own debt, there appears to be inflationary pressure on commodities. An economic reality of life is that when there is more money chasing after goods and services, the price of those goods and services go up. Such is the case before us.
The bottom line is that we will likely be feeling the pinch of higher prices for gasoline and other necessary commodities. But don't worry; as long as this president is in office, up is the new down in the world of Big Media.