Three Bucks

Three Bucks per gallon....that used to be big news and everyone thought that would be the tipping point to bring the economy down. Not any more. Ford's over all sales were down 13% in April. Expedition and Navigator SUV's were up 27% and 13% respectively. We don't see anyone changing their habits. Americans believe they are entitled to this almost free energy...remember the true costs are much higher...its just a matter of time.....we are at that inflection point for Peak Oil....two years ahead of schedule...

Fuel facts: A tanker truck typically holds about 9,000 gallons. It takes 40,000 tanker trucks to carry the gasoline the USA consumes every day...or the equivalent of 14.25 Exxon Valdez's...every day...

Maybe they should be refilled with water...The runoff of the Colorado River will be less than 50% of normal this year. The snow pack was 20% of normal...The Arizona reservoirs that normally should have 65 million acre feet of water now hold only 33 million acre feet....there sure are a lot of people 100% dependant on that water.....these trends can't continue.....bit are..

Same in Florida...a water permit issued only last month for the country golf course west of Boca Raton has been withdrawn: it would have used one million gallons per day...the average household uses 350 gallons....Lake Okeechobee will reach record lows shortly...big problem for Florida..also not in the news!

Old habits are hard to break....the market is going straight up and short interest is rising...no one believes that the global economy is growing (they expect a slow down)...everyone looks at the liabilities side of things and not the asset side of the equation....as assets are rising faster than liabilities...which means more global demand for everything...the vast majority of what we read today is bearish and bubble talk. We even read this weekend one money manger said there is a risk housing could finish its correction too soon!!

Danny Boy seen here doesn't spend a lot of time in cars...although he will burn a bit of petrol this summer boating for the first time...he is very curious about these docks and their purpose.