OK, OK, not so funny but when you think of the Rolling Stones Jumping Jack Flash song, it's really all about gas.

Most, if not everyone has gas on their minds.  Rightfully so, at over $4.50 a gallon, people have seen gas rise 100% in just a few years.  Exxon/Mobile proudly reporting the highest returns any company making leaving millions of people stranded using their cars deal with a bleak reality, gas is eating away at their budgets.  So far, nothing earth shattering.

Seeking Alpha has a good post that goes back in time and sees what is different this time.  Remember, every time we have any inflation or recessions, pundits usually say it will come down, it always does after all, doesn't it?  Well, not necessarily so.  A few economists were right by saying when gas will hit over $4 a gallon, people will change the way they drive.  They were right.  What incentives do petroleum companies have to lower their prices?

I was on 405 yesterday going to Culver city and noticed everyone, well most everyone were driving around 70.  If you live here, you know there is either a lot of traffic of a cop car near, but this was the entire way from Long Beach to Culver.

What was particularly good about this article is that it goes back in time, analyzes the situation and debunks some myths.  In a nutshell, after every wars or Middle-East problems we face a steep increase in gas.  As the increase is halfway digested, gas really never goes down once inflation has been taken into account.  And this is the obvious reasons why petroleum companies still make billions a day in our slow economy on the backs of the same people who make the economy go round and have no choice but to use their cars.  Hum, upside down, isn't it?

One easy prediction anyone can make, if you take into consideration we have used 70,000 barrels less than in 2007 so far, amongst other facts in that post, is that there will be more car pool sharing, slower speed on highways, more telecommuting, in brief less traveling.

It's fascinating that gas price has finally touched the unthinkable in our society, make us mindful that our gas guzzlers are darn expensive after all.  And if you think our prices are steep, remember that in Europe people make less money and pay around $8 to 9 a gallon!  Now I know why they have small performance cars and we get stuck with bloated vehicles… and why those electric cars are making more sense than those hybrids!