Wow! Prices.

[Mark Poole ModVP]

Has anyone been on ebay lately? Sticker shock. No more place to find deals. RC boats and even anything toy boat related has shot up like gas prices. Vintage toys that used to be 25 bucks are now over 100. Tunnel hull, hull only, for $525 with shipping. That little F3 Sprint electric tunnel...over $600. They might not get it but the asking prices have jumped up on everything. Makes no sense other than everyone has the same thought which is....When in Rome.............

 

[Gary Parker]

The whole gas price thing is a sham anyway because the gas (petrol) you are buying today was probably refined many, many months ago using input crude oil supplies which were purchased as part of a "futures" contract many, many months before that. The current dramatic increase in the price of crude oil is just being used as a cover to "price gouge" consumers in the same way that gas prices didn't fall dramatically during the recent periods of a lower crude oil prices during Covid.
Totalitarian regimes with State control of gas production have very little fluctuation in prices year on year.

 

[Mark Poole ModVP]

I can understand shipping cost increase and new product increase. The cost of building life size boats is about to jump thanks to the oil price. I don't get the sudden jump in used stuff on ebay. Some of the prices are absurd. I might be talking to the wrong audience. After all, how much does it cost to build a twin engine superboat?

 

[Brad Christy]

The whole gas price thing is a sham anyway because the gas (petrol) you are buying today was probably refined many, many months ago using input crude oil supplies which were purchased as part of a "futures" contract many, many months before that. The current dramatic increase in the price of crude oil is just being used as a cover to "price gouge" consumers in the same way that gas prices didn't fall dramatically during the recent periods of a lower crude oil prices during Covid.
Totalitarian regimes with State control of gas production have very little fluctuation in prices year on year.

Gary,

Gas prices are entirely determined by supply and demand, but future demand is something many people seem to neglect. If the foreseeable future demand is in jeopardy, it will influence prices the same as immediate increase in demand. This is how oil companies are reading "We are going to end fossil fuels".

Also in play is the sudden influx of cash into the economy. You simply can't pump trillions of dollars, for which there is no backing, into the economy without the value of the dollars already in circulation decreasing in value.

Thanks. Brad.
Titan Racing Components
BlackJack Hydros
Model Machine and Precision LLC

 

[Danny King]

There is about 30% more cash in circulation then 2 years ago. That makes each dollar worth less then it was before. Thus raising prices. Inflation.
Everything is higher.

 

[Gary Parker]

Hi Brad - if we are talking about an economic theory of a pure supply side/demand side market then I agree with you 100%. My point was the excessive degree and timing of recent gas price rises and associated products relative to the current supply and demand situation and outlook.
Real world experience is that gas price rises are generally excessive whether the perceived changes to the supply side are temporary or long term whilst prices are much less affected when consumer demand goes down or (rarely) the supply side is higher. We also have to factor in that the crude oil market is not in fact free or open as producers reguarly and openly manipulate the supply side to maintain or affect prices in their favour.
Other producers then use energy price rises to excessively raise their product prices and on it goes.
Last night on local TV a representative of a large canned food producer announced that he expected a can of baked beans would go from $1.70 to $2.20 to cover extra transport (petrol) costs. A 30% overall price increase in each of his product units for a rise in one of his input costs, that I calculate locally to be around 15%, is not pure supply and demand.
Nice to finally get to ventilate some old economic classes and tutorials.
Cheers
Gary

 

[Brad Christy]

Hi Brad - if we are talking about an economic theory of a pure supply side/demand side market then I agree with you 100%. My point was the excessive degree and timing of recent gas price rises and associated products relative to the current supply and demand situation and outlook.
Real world experience is that gas price rises are generally excessive whether the perceived changes to the supply side are temporary or long term whilst prices are much less affected when consumer demand goes down or (rarely) the supply side is higher. We also have to factor in that the crude oil market is not in fact free or open as producers reguarly and openly manipulate the supply side to maintain or affect prices in their favour.
Other producers then use energy price rises to excessively raise their product prices and on it goes.
Last night on local TV a representative of a large canned food producer announced that he expected a can of baked beans would go from $1.70 to $2.20 to cover extra transport (petrol) costs. A 30% overall price increase in each of his product units for a rise in one of his input costs, that I calculate locally to be around 15%, is not pure supply and demand.
Nice to finally get to ventilate some old economic classes and tutorials.
Cheers
Gary

Gary,

I think it's all pretty well accounted for when you factor in the Bidenflation. With every dollar worth about $.75, relative to two years ago, it's almost expectable to see the costs of everything go up by 30% from that factor alone.

In regards to the canned food producer, it's not just their immediate transport costs, but the transport costs that contribute to their incoming materials costs. Most people are utterly unaware of how connected to energy costs consumer pricing is. Ever notice the price of milk always follows the price of gas? I've very often seen them reflected virtually one-for-one.

Thanks. Brad.
Titan Racing Components
BlackJack Hydros
Model Machine and Precision LLC

 

[Carl Van Houten]

Yep

 

[SayMikey]

Today gas is trefity here

 

[ALLAN YUEN]

Today gas is trefity here

USA always make compliant so Looking in world

 

[SayMikey]

Well then after lunch it went up 50cents 4bucks now wtf

 

[DON MAHER]

$ 6.00 a gallon in Los Angeles..!

 

[Chris Wood]

wait till fall for food prices and food shortages. will make gas the least of our worries. oh and your ESG score......

 

[Don Ferrette]

USA always make compliant so Looking in world

All of those other countries do not refine oil like the U.S. does so it's a stupid meme. Under Trump the U.S. became the world's top crude producer in 2018, we were energy independent and controlled market pricing because of it. When Biden killed off production and forced us to rely on foreign oil again the prices more than doubled. Get you facts straight before posting such drivel.

 

[Don Ferrette]

Well then after lunch it went up 50cents 4bucks now wtf

 

[Bill Gibson]

All of those other countries do not refine oil like the U.S. does so it's a stupid meme. Under Trump the U.S. became the world's top crude producer in 2018, we were energy independent and controlled market pricing because of it. When Biden killed off production and forced us to rely on foreign oil again the prices more than doubled. Get you facts straight before posting such drivel.

Im pretty simple minded for the most part, but based on where were and where we are now, i pretty much thought the same thing you just posted......thank you. The entire Biden administration has got to go....has to be the sorriest excuse for Government in this countries history. Pathetic.

 

[Gary Parker]

I will quite happily leave US politics to US citizens but will note that US is currently ranked 72 of 170 countries in comparative world petrol prices.
According to globalpetrolprices.com the top 5 ranked countries for the least expensive petrol price in the world currently are Venezuela, Libya, Iran, Syria and Algeria at around 0.03 US cents per litre. With a US gallon around 3.8 litres that makes it a whopping 12 US cents per US gallon. All oil producing countries with totalitarian governments and probably no domestic profit margins.

Still would not want to live in any of them !!!!

 

[Don Ferrette]

I will quite happily leave US politics to US citizens but will note that US is currently ranked 72 of 170 countries in comparative world petrol prices.
According to globalpetrolprices.com the top 5 ranked countries for the least expensive petrol price in the world currently are Venezuela, Libya, Iran, Syria and Algeria at around 0.03 US cents per litre. With a US gallon around 3.8 litres that makes it a whopping 12 US cents per US gallon. All oil producing countries with totalitarian governments and probably no domestic profit margins.

Still would not want to live in any of them !!!!

Gary you are correct on where it is now, not where it was in 2018................

 

[ALLAN YUEN]

View attachment 302336

Everyone try steal gas at any vehicles

 

[Gary Parker]

Hi Don - According to your US Energy Administration data the average annual retail gasoline price increased from $2.41 in 2009 to $3.68 in 2012 and then gradually decreased to $2.25 in 2016 before gradually increasing to $2.81 in 2018. It then decreased again to $2.59 in 2020 but has been increasing ever since.
I will leave to others to overlay and comment on the Presidential terms covering these periods.
Gary