price gouging vs. supply and demand

So you may have heard about a bit of a weather-related unpleasantness lately from something called a “derecho” that hauled ass across Ohio, West Virginia, Pennsylvania, Virginia, DC and Maryland last Friday.

As a result of such weather, many people have gone days without power in the stifling heat. Everywhere you go you hear the sound of chainsaws, the sound of emergency generators, and everywhere you look are people just driving around or idling just because their car is the only AC that they have access to.

Fuel demand has probably doubled and the supply, well, you probably realize that without power no one can pump or sell any gas. Many stations have been left high and dry. Any fuel station that prepared themselves for the privilege of selling you gas during an emergency with expensive homemade emergency power probably wants to make their investment back.

So is anyone really surprised when gasoline starts costing twenty-five cents more a gallon? I’m surprised it didn’t double.

Inevitably, the elected officials screaming the loudest are the same ones arguing that President 0bama doesn’t have a “gas price control” lever in the Oval Office. These are the same idiots that refuse to accept that there really is a “T-bill event horizon”, past which it would be impossible to sell enough paper to service the paper we’ve already willed into existence.

(Oh, and last I checked, a 10 year T-bill issued by Greece was paying out in interest at something like 27%!)

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