Amazing how everyone has already forgotten the sticker shock when it surpassed $2 per gallon. In January 2006 we had prices almost that low, about $2.19 per gallon. Now we are paying almost one dollar more at 3.09. The crude price rose due to war fears about Iran as well as a devalued dollar. Americans are paying a War Tax at the pumps, in addition to Fed and State tax of about 45 cents/gallon (the gov't makes more than oil companies on this high tax). These prices make even Jimmy Carter look good.

The transportation costs of consumer goods has gone up (e.g. eggs $2). This is pinching Americans discretionary income, which will slow the economy, and debts are high, loans going bad in housing.