Can Col. Gaddafi and/or the oil-rich countries of the Middle East sway a California special election? Okay, let’s agree that the scenario I am about to examine is way down the road and things will change in a few months. But it is possible that the revolutionary actions in the countries along the rim of Africa and the Middle East could play a role if California holds a special election in June.
How so? You already know the answer: the price of gasoline. The price is already affected by the uncertainty in the region and if the unrest ever hits Saudi Arabia the price would blow through the roof like a gusher on an old-fashioned oil derrick.
Increased prices for crude oil translate to increased prices for gasoline at the pump. CNBC Executive Editor, Patti Domm, said clues to whether the United States hits $4-a-gallon gasoline would first show right here in the Golden State. “Let’s watch California. California is the first state that will see prices go up to the point that will really impact consumers.”
Other experts told the San Jose Mercury News that if fighting breaks out in major oil producing states, “$6 (a gallon) isn’t crazy.”
Which brings us back to the special election. If prices go up on gasoline and stay up as a special election approaches, that would create a ripple effect throughout the economy. Because of the gas price increase, prices will go up for food and for other goods and services.
If consumers were burdened with greater costs as the economy slows down, voters would likely take a pass on extending taxes.
A lot can and, I’m sure, will happen between now and a possible June election. However, looking at the situation today, far off events and uncertainty coming from the oil producing states could play a major role in the outcome of a possible California special election this summer.