After 24 years on the job, Federal Reserve Bank of Minneapolis president Gary Stern retired last month. Today it was announced that Narayana Kocherlakota will  be his replacement, taking over the position immediately. He will become a voting member of the Federal Open Market Committee in 2011.

Narayana Kocherlakota, 45, is an economics professor at the University of Minnesota and has been on the research staff at the Minneapolis Fed. He is currently writing a book on tax policy. Here are some more news tidbits in the world of credit and cash today.

No more gift card fees from AmEx

CNN Money today reports that American Express will terminate its policy of deducting monthly fees from unused gift cards — starting now! Customer complaints pushed the company to make this change. The company previously deducted $2 from a gift card’s value each month that it went unused.

The new policy will apply to all gift cards, including ones purchased before the policy change. Earlier this year, a law was passed prohibiting credit card company’s from deducting dormancy fees from gift cards unless the cards are dormant for more than a year. That law goes into effect August of next year.

Unemployment still higher than last year

Every city in the United States in August 2009 recorded a higher unemployment rate than it did in 2008, according to Reuters. A total o f 16 states reported an unemployment rate higher than 15 percent. The national unemployment rate in August was 9.6 percent. Normal unemployment is about 5 percent.

The labor Department surveys 372 U.S. cities, and though 11 metropolitan areas reported gains in jobs, the unemployment rate in those areas was still higher than last year. Detroit has the highest unemployment rate in the country, 17 percent.

Projections say gas prices will go up

The the government reported a surprising decrease in gasoline stockpiles today, causing oil  prices to jump. Prices went up almost 6 percent, according to CNN Money. That means gas stations will pay more for crude oil in coming months, and gas prices will continue to rise through November.

MF Global energy analyst John Kilduff said the rising price of crude can also be attributed to rising tensions related to Iran.

“The revelation of the Iranian nuclear facility seems to be installing higher and higher floors for oil prices as the situation becomes clearer,” Kilduff said. “If the situation deteriorates and the rhetoric around it becomes more bellicose, prices could reach between $80 and $100 a barrel later this year.”

The price tag on a barrel of oil today took a big jump.

If you drive an SUV or other gas-guzzling vehicle, you might want to read up on payday loans in case you need one to fill your tank.

Oil prices rose today shortly after the House of Representatives approved the economic stimulus package. Gas prices also have gone up since yesterday. If you don’t have enough cash to fill your tank, remember that the fees on payday loans are tiny compared to the cost of missing a day of work.

Economic indicators

Though most market researchers say the global demand for crude oil will decrease greatly this year, demand appears to have increased in the United States. Energy analysts believe oil prices and the stimulus plan progress are linked.

“To some extent that may be contributing to some willingness to take on more risk,” said Rachel Ziemba, energy analyst with research firm RGE Monitor.

World market

While barrels of crude are fetching higher prices on the New York Stock Exchange, they are still more valuable in other countries.

The price of Brent crude in London ended trading yesterday at $46.03 a barrel, while oil trading in New York closed at $33.98, according to CNN Money.

The price jump today was the largest rise in a single day since the end of 2008. Last summer oil prices peaked at $147.27 per barrel.

A shaky situation

Brent crude prices fell as investors opted to buy U.S. crude instead. The overall market for crude oil is fundamentally “not very good” said the head of a research trading firm.

The national average for a gallon of gas in the U.S. now is $1.96, and analysts believe that price will continue to climb into the summer, but the market is still fluctuating amid all types of speculation. If you get stuck without any fuel, payday loans might be your ticket to transportation.

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If you’re out of cash and gas, online payday loans may be the only way you’ll be able to get around. For a while there, it seemed gathering the loose change from your couch cushions was enough for a few days’ worth of gas.

However, the gas trend is heading in the opposite direction.

Up, up and away

Gas prices are headed back up. The price for a gallon of gas hit its lowest national average, $1.62, at the end of December. In the last six weeks the average price has gone up 20 percent, to $1.95, and experts say prices could pass the $2 mark as early as next week.

By summer, people might be needing online payday loans again to fund transportation.

Not-so-bad news

Experts do not believe that gas prices will reach the astronomical levels we experienced during the summer. People simply won’t pay it. With so many jobless and everyone pinching pennies and thinking about cutting costs and saving money, the economy just won’t support another summer of $4 gasoline.

Crude oil is cheaper

Those of you who have read that the price of crude oil is falling are no doubt confused by the rise in gas prices. Ben Brockwell, director of data pricing for OPUS, says this conflicting trend is caused by oil refineries losing money when gas prices were at a low point.

“I think what you’re seeing now is a backlash of a period, from the end of the summer until the end of the year, when refiners were selling gas into the consumer market at a discount to crude oil,” said Brockwell.

Economists don't think Americans will be willing to pay such high gas prices this summer.

Prepare for the worst

The best way to prepare for rising gas prices, of course, is to save money and make sure you have a bit of a cushion in case of unexpected costs. But if your paycheck just doesn’t stretch far enough, you can get online payday loans without even leaving the house.

You save more by NOT buying a hybrid

Bet you didn’t think that was possible, did you?  It is the truth, and we are going to show you why.   First is the initial purchase cost – hybrid vehicles cost about $3,000 more than their gas counterparts, and that is the lower end, and unfortunately no amount of payday loans will cover that cost.  That said, the savings you are supposed to get are not exactly what you think – this may surprise you.

• Cost of gasoline – the cost of gasoline, we will assume for a moment is a constant, and right now it is about $1.50 per gallon.

• Mileage – let us assume a 10 mpg difference between Cars A (gas) and B (same model hybrid), where A gets 30 mpg and B gets 40 mpg.

• Average Miles Yearly – the average is between 10 to 15,000 miles.  Let us assume 12,500 miles a year.  So, yearly gasoline consumption:

A (non hybrid):  12,500 miles a year/30mpg = 416.7 gallons

B (hybrid): 12,500 miles/40 mpg = 312.5 gallons.  Less gas used, ok.
Cost of gas:

A – 416.7 gallons X $1.50 gal = $625.05

B – 312.5 gallons X $1.50 gal = 486.75.  Less money is spent on gas – but there is a difference of only $138.75.

Hybrid saves big – a whopping couple of hundred bucks per year at most

The average time an owner drives a vehicle is between 3 to 5 years.  Assuming that a hybrid owner keeps the car for 5 years, that is less than $700 saved on gas. If the price difference is more than $3,000, you still have $2300 to make up for.  Look at it this way: If you purchase a hybrid, and the mileage is 10 mpg better than the gas model, and the cost difference is $3000 (after clean vehicle tax credit) at $1.50 a gallon, it will take you about 22 years for a hybrid car to pay off.

Of course, the variables are the yearly mileage that you put on the hybrid and the cost of gasoline.  If the figures are adjusted to the previous $4 per gallon and the same yearly number of miles, the annual savings works out to approximately $420. If gas goes back up to that amount, it will still be more than seven years before the difference is made up by the savings on gas. That is even longer than the five year average.  Even the miracle of the hybrid car can’t save your budget like payday loans can save you from overdraft or late fees if you had a sudden expense.

Some interesting phenomena grew out of the crazy fluctuations in gas prices. Here are some of the ways in which gas prices affected behavior in our country.

‘Bus people’ becomes bigger demographic

As people probably suspected, public transportation became more popular when gas prices skyrocketed in the summer. From July to September, ridership was up 6.5 percent compared to last year.

The interesting thing is what happened to public transportation ridership when gas prices shot back down: Nothing.  Well, not nothing, but not much. Many people chose to continue using public transportation after gas prices went back down just because they had grown used to it.

My thoughts? In the past, some categories of people looked down on “bus people,” and buses had a bad reputation. People viewed riding the bus as low-class. When gas prices pushed more people of different demographics onto the bus, the stigma was dropped when people realized how many benefits come with riding the bus. Number one benefit: Not paying or looking for parking.

Driving: Not so popular anymore

Obviously, if more people are still using public transportation, fewer people are driving. But it isn’t just the bus people who are cutting down the driving statistics. Americans as a whole are simply driving less, even though they don’t need payday loans to afford gas anymore.

Between November 2007 and October 2008 Americans drove 100 billion miles fewer than they did last year. The Department of Transportation has called it the most dramatic continuous decline in history.

I think this phenomenon can be attributed to a combination of increasingly educated citizens when it comes to energy use, gas prices and continued attention in politics focused on energy efficiency and the environment.

Talk about a tax hike

While less driving is good for the environment, it’s not good for state budgets. As Americans buy less gas, that means they are paying less in gas taxes. In fact, driving has declined so much that the federal commission that oversees financing for transportation is considering a tax hike.

Money from gas taxes goes toward highway and public road construction and repair. The commission is urging a 50 percent increase in the gas tax to ensure these services will continue to be funded.

The man behind the pump

A gas tax hike will only make things worse for already struggling gas station owners. Gas stations only make 30 percent of their profit from gas, even though gas constitutes 70 percent of their sales. The majority of their profit comes from buying food and other goods inside the store.

Traffic is everything for gas station profits. When more people buy gas, more  come inside and contribute to the station’s profits. As more and more people are skipping trips to the gas station, profits are falling, falling, falling.

If these trends continue, it might be gas station owners applying for payday loans.

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So maybe the country’s “best” financial minds didn’t make predictions about payday loans, but they sure did try to tell the future about a few other things. As the year winds down, Peter Coy had the right idea for looking back on some of the predictions people made about this year and pointing out just how wrong they were.

I’ve picked a few of my favorite predictions to discuss, and maybe if you’re lucky, I’ll make a few predictions of my own for 2009. After all, I can’t be more wrong than these guys.

Excuse me, Mr. President

I always think it’s funny when people say it’s unpatriotic to make fun of the president. I mean, wasn’t part of the reason he was elected because he was a “regular guy?” I say if he is a regular guy, then he is fair game for mockery, just like everyone else.

Well this year he showed just how regular he is when he said in March, “The market is in the process of correcting itself.” OK, so that is debatable, I suppose. Perhaps it is still in the process of correcting itself. Perhaps crashing, reaching record lows and recession are all part of the correction process.

Not only did he win, it was a landslide

Speaking of presidents, Shelby Steele was not alone when he predicted that Barack Obama could not be elected. I heard it from countless people — Republicans, Democrats, Whites, Hispanics, Hawaiians, you name it.

So what makes Steele’s prediction extraordinary? Well, he seems to be the only one who wrote a book about it. Wikipedia says Steele is a nonfiction author. However, after reading the title of his book published in December 2007 (”A Bound Man: Why We Are Excited About Obama and Why He Can’t Win”), I beg to differ.

I wonder how many copies that book sold. Perhaps Steele will have to take out payday loans to make ends meet before his next literary masterpiece hit the shelves.

How about those gas prices

Gas prices, gas prices, gas prices. For a few months there I felt like I couldn’t make it through an entire conversation about anything without gas prices coming up. It seemed the high price of gas affected so many different facets of life, it was impossible to escape.

One businessman in June predicted that the prices would continue to go up. OK, maybe not ONE businessman, but here’s what we have on record:
“I think you’ll see (oil prices at) $150 a barrel by the end of the year.”

That quote was by T. Boone Pickens, and at that time, oil was at $135 a barrel. But I don’t think Mr. Pickens was the one person who was surprised when oil prices began dropping … and dropping and dropping.  Now they have hit below $40 a barrel.

2009 is lookin’ mighty fine

So what do I predict for the year to come?  I predict that more people will argue that Global Warming is a myth, Michael Moore will make a documentary about alternative fuel sources and Britney Spears will have another baby.

I predict that more people will make inaccurate predictions. But I think that, just like this year, I will be glad they were wrong. And I predict I might need payday loans to make up for all the work I missed because of the snow.

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Today marks the 75th day that gas prices have fallen and another day that consumers are saving money at the pump. This is good news for Americans approaching the Christmas holiday, when a lot of people get payday loans for those holiday gift expenses.

Payday Is Coming More Often. Now At The Pump!

With the troubled economy, saving money has been difficult. Higher gas prices only compound the country’s economic strain and tend to discourage tourism and people’s willingness to travel, spend, and consume.

40% of American households live paycheck to paycheck so when the price of gas doubled, hitting a national high of $4.114 a gallon, it put a lot of American consumers in trouble; alternative measures had to be taken just to make ends meet. Utilizing local city transit systems, cutting back on consumer spending and taking advantage of payday loans services were just a few of the actions taken by many in order to meet and pay their monthly expenses.

National retailers largely depend on revenue made by consumer spending during the holidays.

Tis The Season To Be Spending

With the the third quarter of the year responsible for the largest percentage of the nation’s consumer spending, it is important for many retailers, and therefore the economy, that consumer spending habits be left unbridled for what is left of the Christmas shopping season. This year has raised a lot of questions in regards to how much would be spent by consumers under the economic pressures such as rising gasoline.

Thankfully however, gas has dropped over 55% to a national average of $1.83 per gallon. This has made some big differences in the balances of consumers’ checkbooks.

“It’s like an extra payday every time I go to the pump”, said one consumer. “What was costing me over fifty dollars is now costing me under twenty-five. I have to fuel up at least three times each month so it’s nice to see the extra seventy-five dollars in my pocket come the month’s end”

This is an encouraging change of events as the money consumers save in gas, they are likely to spend on gifts for both themselves and others, which will help to stimulate and rejuvenate the state of our current economy.

Saving Money Through Conservation

Practicing fuel economy can save you big in the long haul.

Saving money is a hot topic today and gasoline seems to be where the money is being made, that is if you have learned to be conservative with it. Here are a few money saving tips that will help you to do just that and save yourself even more money this month.

Don’t Drive Aggressively

Aggressively speeding up and slowing down as well as constant breaking can cost you up to 33% of your gas mileage on the freeway and 5% of your gas mileage in town. Try to avoid the constant stop and go of your daily commutes. This aggressive behavior is usually associated with being in a rush on the road, and will also send you out for payday loans to pay off traffic tickets. Practice leaving five minutes earlier for work and you can save on both gas and money.

Keeping it under 60mph

Honestly, how often do you keep your speed under sixty miles an hour on the freeway?

Most speed limits are around 65mph and everyone is always trying to press the “Ticket Limit” which is usually five to seven miles per hour above that.

The thing to remember here is that wind resistance increases exponentially with the rise in speed and although vehicles tend to reach their optimum fuel efficiency at different speeds, the general rule of thumb is that it will cost you an additional $0.24 per gallon for each 5mph above 60mph.

Depending on the length of your daily commute and the speed at which you drive, you can decrease your fuel consumption dramatically and again, save money.

Lose The Extra Weight

Still have those fifty pound sandbags in your truck from last winter? If so, the last nine months may have cost you a small bundle. For every hundred pounds extra, you may reduce your fuel consumptions by up to 2%.

Cruise When You Can

The steadier the speed you maintain, the better the fuel consumption you will achieve. Whenever you are on the highway or freeway take advantage of automatic cruise control if you have it and remember to keep it at 60mph or under.

Every little bit helps, especially today. Practice implementing the tips above and you will give yourself a good start on saving the additional funds for the holiday’s and beyond.

No fax payday loans are probably the last thing on most consumer’s holiday travel lists right now, but for those who are on a tight budget, it’s an option to keep in mind. There’s nothing worse then having to spend the holidays alone because you can’t afford to travel home, but with the way our economy is right now, a lot of consumers are choosing to do just that. Even though gas prices have dropped to almost half of what they were in July of 2008, people still can’t afford the extra cash to be at home with loved ones. Not to mention that airline tickets are up 8% and car rental prices are up 4% from 2007, making it an even harder choice for consumers to choose between family and making ends meet.

Soaring Airfare Effects College Students

Even college students are suffering the effects of the economy on holiday travel and need money or no fax payday loans to make it home for the holidays. Many students this year optioned not to go home for Thanksgiving in hopes of having enough funds to make it home for Christmas, but for most of them, it’s still not going to be a possibility. Most students are at least 3 or more states away from home and holiday airfare prices for those students are averaging over $500. Train and bus fares are up as well making it even harder for students to make it home.

Traveling vs. Shipping

For those of you who are tinkering with the notion of not spending the holidays at home and just shipping gifts to family members, think of this. How many gifts will you be shipping? If you are like me and have brothers, sisters, cousins, uncles, aunts, nieces and nephews you buy presents for each year, that is a whole lot of money spent on shipping those gifts to your family. Wouldn’t you rather give those gifts in person? Last year I spent over $200 just on shipping gifts to family, and even with last year’s gas prices, I could have driven home for that price. Plus, when you ship you have the added worry of whether or not the gifts will even make it to your family on time for the holiday or at all.

Make Memories Not More Debt

Now I’m not endorsing no fax payday loans for those of you who blew your paychecks on countless gifts, ridiculous holiday sweaters, and ties with the Santa Clauses on them. But, if you are paid up on bills and still find yourself coming up a little short to make it home for the holidays, no fax  payday loans can be a valuable resource to get you where you need to go. Like I said, there’s nothing worse than being alone on the holidays. Be responsible this holiday season and make memories with your family you won’t forget.