The change that is coming:
An Obama aid and professor was on C-SPAN the other night lecturing to a group of political science students; the topic, "influencing public perception to support new public policy".
The "trial balloon" he was proposing was $4/gallon gasoline...meaning it would be $4 per gallon as a fixed price, with the price set by the federal govt. So, in times like this with crude trading low and gas averaging $1.50/gal, our federal govt would pocket $2.50 per gallon. Then, in a year or two (or sooner) if it goes back to over $4, the govt would subsidize for a while, then increase the fixed cost if and when needed. It's not unlike the govt setting the prime lending rate.
The basis of the concept is that people have shown they can and will change their consumption when gas is over $4/gal, and that, for the most part, most can afford that price point. So, why not let the govt fix the price at that amount, causing people to consume less; thereby cutting our dependance on foreign oil; encouraging alternative fuel research and development; and all the while, putting more money back into our govt coffers to help deal with our huge deficit.
I'm not necessarily saying I like the idea, but it wouldn't surprise me if we see something like this done.
Grab socks...
TJR