Well then you will pay for it, but on a microeconomic level your budget will be reduced. Macro, the terms of trade just went through a dramatic shift. At some point, at some time, there will be no supply at any price.

I saw an interesting program called 'Yellow Sand' regarding desertification in China in and around Minqing. There is a small farming village, which by my definitions isn't much suitable for farming. Nevertheless, water is very scarce and they spend half their 'take home' on a yearly basis to make sure that the water is diverted into their village to irrigate the fields. Point is that as the price of water increases it gets used only for the most valued purposes. There is no water to take 10 minute showers, no flush toilets, etc.

The same goes for oil/gasoline, as the price continues to be bid up economic behavior will change. At first, people still must consume the gas, and will shift their budget to buy it, but they will do whatever it takes to reduce consumption. The changes are already happening. Scooter sales are up 24%, I have noticed more and more people shutting their engine off at traffic lights that are known to be long, the price of used Geo Metros is up, mass transit ridership is up....

My friend and I are fully prepared to open a Neighborhood Electric Vehicle dealership which for a second car makes a tremendous amount of sense, but even @ $3.00 per gallon, the cars simply just don't go very fast or very far....

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