Put gas prices in a bit of context

What a difference a few months make.

A few weeks ago Chapel Hill was out of gas. A gallon of gas was selling for $4. We started talking about peak oil. I started riding my bike more frequently.

Those were some tough moments but we worked through them. You can thank the turmoil in the credit markets for lowering your financial pain at the pump.

Meanwhile countries who love to harp about America are now facing financial problems of their own that threaten to kick them from power. You can thank commodity markets for that.

Oil is sinking to record lows. Last week we saw prices plummet to below $70 a drop of more than 50 percent from a high of $147 per barrel.

It's giving OPEC serious heartburn. Politicians have stopped talking about gas-tax holidays and windfall profit taxes. Outside this country anti-American presidents are pontificating a whole lot less.

Seen or heard from Hugo Chavez lately?

Some economists are claiming that if oil stays below $80 Chavez's government will lack the funds to sustain his spending binge. Sounds like Mr. Chavez won't be able to buy more Russian military hardware. Venezuelan oil which we purchase is the grease that keeps his Bolivarian Revolution running. Caracas now has one of the highest crime rates in Latin America. Inflation is running unchecked. State elections are due in November. Sounds like a recipe for electoral disaster.

Bothered to look at Russia?

 The natural gas and oil linked economic boom has burst. In the last three months the Russian stock market has lost 60 percent of its value. The value of billion-dollar loans taken out by Russian oligarchs is now worth more than their stock holdings. Uh oh. Meanwhile we're given a fuzzy" warm image of Vladimir Putin receiving a baby tiger for his birthday. Talk about diverting the media's attention. Who knew Mr. Macho had a sensitive side?

Wondered what's up with Mahmoud Ahmadinejad?

He's claiming we're facing the ""end of capitalism"". Last time I checked" our stock markets despite sinking are still humming along. Wachovia (or Wells Fargo) still continues to accept my ATM card and Subway is selling me $5 footlongs. If OPEC fails to stop the bleeding at an emergency meeting this Friday then the Iranian government is going to face serious budgetary problems.

The subprime mortgage crisis is impacting countries beyond those who are overly reliant on oil.

Iceland nationalized its entire banking sector while Argentina took control of private pension funds. Pakistan is in crisis talks with the International Monetary Fund to secure an emergency loan. European countries are bailing out their own banks.

This subprime mortgage crisis has become global. Call it contagion or the recession effect.

We can take some comfort in realizing that we have a stronger dollar and cheaper gas. Still if we are beginning to learn a lesson from this crisis it's that no one is immune. Everyone is struggling.

The British prime minister is calling for a new financial order modeled on the idea that central banks are powerless to regulate global markets and an international one is needed.

It's time we examined what failed and sign on to his proposal.