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Whose Ready for $3.00 a Gallon Gas
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Modelcar - The real danger to the economy of high fuel prices isn't in the transfer of consumers' discretionary income from toys to fuel, because the economy can absorb such internal transfers. The real danger is if high fuel prices cause an inflationary reaction for our goods due to higher transportation costs. One way to placate that possibility is to allow a greater load factor for truckers that can offset higher fuel costs, keeping the delivered price of goods nominal. Even if it is just temporary until the speculation diminishes, it is still the best and easiest way to avert the inflationary affects.
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