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Why Is Fuel So Cheap In The USA?  
User currently offlineTheSonntag From Germany, joined Jun 2005, 3509 posts, RR: 29
Posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4590 times:

I always wondered, why is fuel so rediculously cheap in the US. In Europe, fuel is expensive everywhere, because of the high taxes. Do the US have no taxes on fuel, or why is it so cheap?

89 replies: All unread, showing first 25:
 
User currently offlineUsnseallt82 From United States of America, joined Jan 2004, 4891 posts, RR: 53
Reply 1, posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4586 times:

Uh, I don't think this is the time to start a thread like this if you're really looking for some honest answers. I am pretty sure that most Americans wouldn't consider fuel cheap by any means these days, even though other parts of the world have more expensive rates.


Crye me a river
User currently offlineCaptOveur From , joined Dec 1969, posts, RR:
Reply 2, posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4582 times:

Quoting TheSonntag (Thread starter):
. Do the US have no taxes on fuel, or why is it so cheap?

Most states run around 40 cents a gallon in taxes on fuel. That is a lot less tax than is charged in Europe.

Also, we need fuel to be cheap, we are much more spread out than Europe.


User currently offlineTheSonntag From Germany, joined Jun 2005, 3509 posts, RR: 29
Reply 3, posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4578 times:

Quoting Usnseallt82 (Reply 1):

True, but still, 1 litre is 1,50 Dollars in Europe, while 1 gallon (= 4 litres) is not much more expensive in the US if I remember correct...


User currently offlineWhiteHatter From , joined Dec 1969, posts, RR:
Reply 4, posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4576 times:

Quoting TheSonntag (Thread starter):
I always wondered, why is fuel so rediculously cheap in the US. In Europe, fuel is expensive everywhere, because of the high taxes. Do the US have no taxes on fuel, or why is it so cheap?

Much lower taxation. There is also the fact that transportation costs are lower as much US oil is sourced locally from the Gulf of Mexico and other locations, whereas Europe uses oil shipped in from the Gulf States.

North sea oil is also lower in its gasoline yield than that from places like Saudi Arabia. It's a heavier form of crude.


User currently onlineANITIX87 From United States of America, joined Mar 2005, 3299 posts, RR: 13
Reply 5, posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4573 times:
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Quoting Usnseallt82 (Reply 1):
Uh, I don't think this is the time to start a thread like this if you're really looking for some honest answers. I am pretty sure that most Americans wouldn't consider fuel cheap by any means these days, even though other parts of the world have more expensive rates.

While we may not consider fuel cheap here in the states, in Europe it's just ridiculous. Price is all relative and you can't blame TheSonntag for thinking it's cheap here. In Switzerland this summer I saw gas for 1.89 a liter, which is roughly 3 or 4 times the price in the states!

Makes me feel sorry for all my cousins there who are just getting their liscences.

TIS



www.stellaryear.com: Canon EOS 50D, Canon EOS 5DMkII, Sigma 50mm 1.4, Canon 24-70 2.8L II, Canon 100mm 2.8L, Canon 100-4
User currently offlineAloges From Germany, joined Jan 2006, 8682 posts, RR: 43
Reply 6, posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4560 times:

Quoting WhiteHatter (Reply 4):
Europe uses oil shipped in from the Gulf States.

Russia and Lybia, as well. That's one of the reasons why Putin and Ghaddafi get/got away with everything.



Walk together, talk together all ye peoples of the earth. Then, and only then, shall ye have peace.
User currently offlineAAFLT1871 From United States of America, joined Dec 2004, 2333 posts, RR: 10
Reply 7, posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4554 times:

Quoting Usnseallt82 (Reply 1):
Uh, I don't think this is the time to start a thread like this if you're really looking for some honest answers.

Why I see nothing wrong with the question. He has a point, even though the price per gallon has risen in the states, it is still cheaper than the majority of the world!!

Quoting Usnseallt82 (Reply 1):
I am pretty sure that most Americans wouldn't consider fuel cheap by any means these days,

Then most Americans have never traveled abroad then.



Where did everybody go?
User currently offlineLTBEWR From United States of America, joined Jan 2004, 13029 posts, RR: 12
Reply 8, posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4537 times:

Taxes on the Federal and State level are a lot lower in the USA as a deliberate policy. In Europe, high taxes were used to hold down demand and imports for oil especially after WWII and to pay back the costs of the war and rebuilding. In later years, like in the Mid-1950's Suez Canal crises, it was to conserve oil when supplies got tight. Later, the taxes were kept high to pay for the broad social services (including medical care) the citizens demanded. In the USA, the per gallon taxes (I believe Federal of 14 cents/gallon and the state from 10 to 40 cents/gallon) taxes are mostly used to pay for roads and their maintence. Some states also use part of their per gallon taxes or add general sales taxes to fuel sales for general revenue purposes. Low priced oil/oil products are needed per many here due to long distances to work, the growth of suburbs. In Europe, most people live in more urban enviroments, and were public transit is more effective. In the USA, politicans have always been told to keep fuel taxes down and if they wanted to be reelected, they did so.

User currently offlineOneworldman From United States of America, joined Dec 2003, 190 posts, RR: 1
Reply 9, posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4532 times:

Quoting AAFLT1871 (Reply 7):
Then most Americans have never traveled abroad then.

While this statement may be true, I think it is a little short sighted. Americans (myself included) are complaining now about our fuel prices because, If you were used to paying $1.30 per gallon and then 6 months later your paying over $3.00, that is I think grounds for a little complaining!



Querer es poder.
User currently offlineTheSonntag From Germany, joined Jun 2005, 3509 posts, RR: 29
Reply 10, posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4532 times:

Quoting LTBEWR (Reply 8):

Ok, this sounds very reasonable, thanks... All together, I think its not so bad to have fuel being expensive, IF the money is used for important social purposes and IF this leads to more fuel efficient cars being developed... But I understand that the car is much more needed in the US due to the greater distances...


User currently offlineYooYoo From Canada, joined Nov 2003, 6057 posts, RR: 51
Reply 11, posted (8 years 9 months 3 weeks 1 day 11 hours ago) and read 4520 times:

Cheap !!!

Go to Venezuela....I think there way up to about 0.12 a litre now.
 banghead 


Andreas  spin 



I am so smart, i am so smart... S-M-R-T... i mean S-M-A-R-T
User currently offlineAAFLT1871 From United States of America, joined Dec 2004, 2333 posts, RR: 10
Reply 12, posted (8 years 9 months 3 weeks 1 day 10 hours ago) and read 4512 times:

Quoting YooYoo (Reply 11):
Cheap !!!

Go to Venezuela....I think there way up to about 0.12 a litre now.

And what does the average person make there a week?



Where did everybody go?
User currently offlineDfwRevolution From United States of America, joined Jan 2010, 960 posts, RR: 51
Reply 13, posted (8 years 9 months 3 weeks 1 day 10 hours ago) and read 4511 times:

>> . All together, I think its not so bad to have fuel being expensive, IF the money is used for important social purposes and IF this leads to more fuel efficient cars being developed...

This has been debated a lot in the U.S.

Higher gas taxes effectivly place an additional burden on lower and middle class workers. It does little to curb the spending habits of the upper and wealthy class. If they want to drive an SUV or guzzling car, they can do so at any price. Also, lower and middle class workers typically live further from their jobs and depend on transportation for their living. A high gas tax disproportionally affects these people, making any increase in social services is zero sum, and does not curb the habits of those who consume the most.


User currently offlineAloges From Germany, joined Jan 2006, 8682 posts, RR: 43
Reply 14, posted (8 years 9 months 3 weeks 1 day 10 hours ago) and read 4488 times:

Quoting AAFLT1871 (Reply 12):
And what does the average person make there a week?

$111.54

Quoting DfwRevolution (Reply 13):
If they want to drive an SUV or guzzling car, they can do so at any price.

Well, if 15,000,000 people can't afford a 10 mpg gas guzzler thanks to taxes but 15,000 people still can, I'm all for it.

Quoting DfwRevolution (Reply 13):
Also, lower and middle class workers typically live further from their jobs and depend on transportation for their living. A high gas tax disproportionally affects these people, making any increase in social services is zero sum, and does not curb the habits of those who consume the most.

Hence this typically German think called "Pendlerpauschale". Commuters get some money (I think it's a tax deduction) for every mile they have to drive. Bureaucracy, bureaucracy...

Edit: merged two posts into one

[Edited 2005-10-06 22:12:53]


Walk together, talk together all ye peoples of the earth. Then, and only then, shall ye have peace.
User currently offlineAAFLT1871 From United States of America, joined Dec 2004, 2333 posts, RR: 10
Reply 15, posted (8 years 9 months 3 weeks 1 day 10 hours ago) and read 4472 times:

Quoting Aloges (Reply 14):
Quoting AAFLT1871 (Reply 12):
And what does the average person make there a week?

$111.54

Thank You Aloges for proving my point. I was not sure of the average weekly pay. I knew it was low. I have done security details where I have made more than that in one hour.



Where did everybody go?
User currently offlineB744F From Germany, joined Jan 2006, 0 posts, RR: 0
Reply 16, posted (8 years 9 months 3 weeks 1 day 9 hours ago) and read 4450 times:

You want the reason? The US being in bed with the Saudis since WWII ended. The Saudis can manipulate the market prices and allow America to buy cheaper oil. Also the many countries the US has "liberated" in the past and used the World Bank and the IMF to force American dominance in the regions of Venezuela, Indonesia, Mexico, etc.

User currently offlineBeefstew25 From United States of America, joined Sep 2005, 675 posts, RR: 0
Reply 17, posted (8 years 9 months 3 weeks 1 day 9 hours ago) and read 4444 times:

Quoting B744F (Reply 16):
You want the reason? The US being in bed with the Saudis since WWII ended. The Saudis can manipulate the market prices and allow America to buy cheaper oil. Also the many countries the US has "liberated" in the past and used the World Bank and the IMF to force American dominance in the regions of Venezuela, Indonesia, Mexico, etc.

Yes, the answer is always the evil American government and its puppet residents.



MLB: Where you are always number one for takeoff.....
User currently offlineB744F From Germany, joined Jan 2006, 0 posts, RR: 0
Reply 18, posted (8 years 9 months 3 weeks 1 day 9 hours ago) and read 4440 times:

Quoting Beefstew25 (Reply 17):
Yes, the answer is always the evil American government and its puppet residents.

There is so much history still left to learn for you, my son.

As a start, you can read "Presidents Secret Wars"


User currently offlineAloges From Germany, joined Jan 2006, 8682 posts, RR: 43
Reply 19, posted (8 years 9 months 3 weeks 1 day 8 hours ago) and read 4420 times:

Would American a.netters agree that the lack of public transportation in the US is partly due to this lack being a kind of "vicious circle" à la "We don't have public transportation, so we need cars. We have cars, so we don't need public transportation"?

Quoting AAFLT1871 (Reply 15):
Thank You Aloges for proving my point. I was not sure of the average weekly pay. I knew it was low. I have done security details where I have made more than that in one hour.

Well, only partly proving that point: according to the same source (CIA World Factbook, forgot to mention that earlier), the average weekly pay in the US is $771.15 which isn't even seven times as much as in Vzla. - but gas prices are slightly more than seven times higher in the US, wouldn't you agree?  Wink

Long story short, of course Vzla.'s huge oil "production" has an immense impact on local prices. Same goes for the Persian Gulf region etc. pp.



Walk together, talk together all ye peoples of the earth. Then, and only then, shall ye have peace.
User currently offlineLowrider From United States of America, joined Jun 2004, 3220 posts, RR: 10
Reply 20, posted (8 years 9 months 3 weeks 1 day 8 hours ago) and read 4405 times:

Its Bush's fault. I am still trying to work in religion and homosexuality to make it a true A.net thread


Proud OOTSK member
User currently offlineOneworldman From United States of America, joined Dec 2003, 190 posts, RR: 1
Reply 21, posted (8 years 9 months 3 weeks 1 day 8 hours ago) and read 4405 times:

Quoting Aloges (Reply 19):
Would American a.netters agree that the lack of public transportation in the US is partly due to this lack being a kind of "vicious circle" à la "We don't have public transportation, so we need cars. We have cars, so we don't need public transportation"?

This would only be true depending on the region of the country you live in. If you live in the Northeast ( New York, New Jersey, Philadelphia, Boston, Connecticut), transportation is not a problem. New York Has one of if not the largest commuter rail and bus system in the world. And all of the states and cities that I mentioned before all have pretty good transportation system as well.

I am not sure how the price of gas is decided outside the USA, but here each state actually has a say in the price of gas. For instance, I live in NJ, where the price of gas is at least $.30 cheaper than the price of gas in NY. And guess what NY has the better commuter system than NJ.



Querer es poder.
User currently offlineAloges From Germany, joined Jan 2006, 8682 posts, RR: 43
Reply 22, posted (8 years 9 months 3 weeks 1 day 8 hours ago) and read 4400 times:

Quoting Oneworldman (Reply 21):
If you live in the Northeast

Yeah, I should've mentioned I was thinking more to the West here. The NYC Metro is of course impressive!

Quoting Oneworldman (Reply 21):
I am not sure how the price of gas is decided outside the USA, but here each state actually has a say in the price of gas.

It's one tax level in all of Germany, which is no surprise since the entire country is about the size of Montana. However, EU member countries have different tax levels and lots of people make short trips over the border to fill up.



Walk together, talk together all ye peoples of the earth. Then, and only then, shall ye have peace.
User currently offlineTheSonntag From Germany, joined Jun 2005, 3509 posts, RR: 29
Reply 23, posted (8 years 9 months 3 weeks 1 day 8 hours ago) and read 4390 times:

Quoting Lowrider (Reply 20):
Its Bush's fault. I am still trying to work in religion and homosexuality to make it a true A.net thread

Maybe fuel prices are so low in the US so that the US can counter the massive selling of illegal subsidised French cars given away for free to homosexual atheists in San Francisco, because these fuel prices make SUVs made in Detroit affordable...

:D

[Edited 2005-10-07 00:29:23]

User currently offlineLuisde8cd From Pitcairn Islands, joined Aug 2004, 2570 posts, RR: 31
Reply 24, posted (8 years 9 months 3 weeks 1 day 6 hours ago) and read 4353 times:

Quoting YooYoo (Reply 11):
Cheap !!!

Go to Venezuela....I think there way up to about 0.12 a litre now.

I just paid USD 1,75 to fill up my family's Grand Caravan Minivan.  Smile

For the person who asked what's the average weekly income here in Venezuela... I'll put it simple. Only the middle class can own cars here, only a small faction of cars are owned by poor people and those cars are really old ones from the 70s, 80s. The average middle class family income is USD 2500 a week.

Fuel is ridiculously cheap here,it is cheaper than water or any other sold liquid.

Saludos desde Caracas,
Luis


25 PeterPuck : It should be even cheaper up here then?!
26 B2707SST : Um, no. If that were true, people like us could make money hand over fist by buying oil futures on the US markets -- which anyone with a brokerage ac
27 Post contains links Thumper3181 : Yes to some extent they are. Saudi/American relations go back to the 1940's when oil was discovered there. That is the only part you got right. I am
28 Post contains images DfwRevolution : >> Algoes >> Would American a.netters agree that the lack of public transportation in the US is partly due to this lack being a kind of "vicious circ
29 Cptkrell : Joining in the spirit of this forum, I have a GREAT plan. For every 10.0 % increase in oil barrel costs (irrespective of who the futures speculators a
30 N1120A : It isn't anymore. The gap has significantly narrowed. Also, there is another reason that fuel is more expensive, the lowest grade of fuel in Europe i
31 Aviation : fuel is 40 percent cheaper in the us but the us must still have taxes on it right? anyway here in aust the price of fuel is about 50% tax! How crap is
32 AeroWesty : Yes, it's difficult to give a definite figure because it varies state-to-state, and even locality-to-locality, and whether local taxes apply to feder
33 TheSonntag : Ok, I didn't want to reply, but I will do it anyway. We got fuel efficient, comfortable cars which are among the best in the world, a good road trans
34 B707321C : There have been a lot of comments regarding why the fuel prices are so low in the US compared with Europe. Its only one reason. Most European countrie
35 Post contains images Aloges : Thanks for the info, and thanks for the decision! Every gallon saved is a great help. Duly noted... More like fuel-efficient safe high-tech cars that
36 Kevinl1011 : Hell yeah! You forgot to mention that we also enjoy burning the rear tires off the car with big displacement V8 engines. By who? Taxation by displace
37 B707321C : Thanks for your correction. I totally forgot about that! Car manufacturers What kind of Chichs would love that! - Most of it actually goes to CA.
38 Kevinl1011 : Yeah no kidding? Fat ass sluts that pour themselves into low cut jeans wearing spagetti strap tops with black bras, bleach their hair and listen to c
39 B707321C : Well, I guess we are all different!
40 LH423 : Umm, have you been to Europe? Their cars are a heluva of lot better than what's sold in N.A.. Furthermore, have you considered that maybe the reason
41 Jamie757 : Just out of interest, what is the octane rating of normal petrol used in the US? Here in the UK our normal unleaded has an octane rating of 95. Rgds.
42 Thumper3181 : Debatable You are painting with a very broad brush. Ever ride Metro North or LIRR? Modern, clean equipment that runs on time. Ever try NYC subway? It
43 Luisde8cd : Yet the USA is trailing many years behind Europe regarding public transportation. You are talking about specific public transportation systems in the
44 Thumper3181 : Except Miami, none of the cities you cite are all that populous. European cities also tend to be built up and the population and business center conc
45 AeroWesty : Regular unleaded is 89.
46 Usnseallt82 : Hey, quote the right person next time.
47 B744F : What the hell was the point of this entire post? Do you honestly think you are explaining something to me that I do not understand? What you posted w
48 TheSonntag : Ok thanks. In Germany, Normalbenzin (lowest available grade) is 91, Super is 95 and Super Plus is 98. Eurosuper is kind of an european standard (95 o
49 AeroWesty : Our grades usually go: Regular: 89 octane Mid-Grade: 91 octane (usually) Super/Premium: 93 or 95 octane (depending upon brand) Each level up adds appr
50 Cptkrell : Hmmm...I expected some of the responses to my rant. But, of course, non of them address specifically a few points. To wit, and I apologise if I don't
51 Post contains images Aloges : OK, I should've mentioned Lamborghini and Ferrari go in the "high-tech" column as opposed to the "fuel-efficient" one. Other than that, what did you
52 Thumper3181 : No, the part you left out is that they manipulate the MARKET PRICE of oil. The US does not specifically get any lower price than ANYONE else. A small
53 AeroWesty : I have to take you to task on this point. Here in Portland, OR, we have an enviable public transportation system that combines busses, light rail and
54 Kevinl1011 : I accept this as your opinion which is validated by agreement from others with the same opinion. How do you evaluate the "worlds worst polluter"? Wha
55 Cptkrell : Don't worry about "taking me to task" on the points of efficient public transportation. Please re-read what I said, specifically "PUBLIC TRANSPORTATIO
56 Post contains images Luisde8cd : Very simple, take a look at pollution statistics. The USA is the world worst polluter. Why? It is simple... you guys are the most powerful and riches
57 Thumper3181 : Could you direct me to the ones you are talking about? It seems that your own answers to Kevin's questions contradict that. Oregon, Washington, New Y
58 Numbertwelve : wow, B744F, great to see that there are still US-Americans who are still able to think critical against this sort of politics. We in the Western worl
59 AirWillie6475 : I think your title is very arrogant to begin with. How do you know that it is really cheap? It's all relative to where you live. Do you know what it i
60 Post contains images TheSonntag : Arrogant? Come on, it IS cheap. And you gave me good reasons to explain why this is the case, and I actually understood your arguments. And yes, we a
61 Skystar : Just to clarify, the US uses the MON system, whereas Europe, Australia, etc use the RON system - so you can't compare the raw numbers directly. I bel
62 Kevinl1011 : One time I went to College and remember something about a widget becoming cheaper to produce as volume increases. Why does this not apply to fuel? And
63 TheSonntag : One of the reasons for the high prices are lack of refinery capacities in the US, something which is partially caused by the hurricanes, but which is
64 Kevinl1011 : Co Not to be a smart ass....but I think you may have negated your thread. I own an automotive related business in So. Cal and my income is directly af
65 Thumper3181 : Yeah and stagnant economies too. You just cannot compare the US to Japan or Europe. The population densities and distances involved do not compare. I
66 Post contains images RayChuang : In Europe, gasoline (or petrol as it's known in Europe) is taxed at a breathtaking 250 to 300 percent of wholesale price at minimum. Is it small wonde
67 Thumper3181 : They look like $hit boxes to me. Seriously. I cannot image hauling the family around any of them. My kids knees would be stuck in their chests. Where
68 Kevinl1011 : I have customers driving Izusu Troopers, Nissan Armadas, Toyota Sequoias that have never seen 20 mpg. My '02 Trans Am WS6 gets 32 mpg @ 80 mph in 6th
69 Post contains images Aloges : Well nobody does so anyway. These small cars are for driving around town and the occasional short trip that doesn't require a lot of space. What if y
70 Thumper3181 : Sorry Algoes, go back and see what I said in reply 65. These are not occasional events for many people in the states. No I really don't "catch your d
71 Aloges : You call me a "Euro weenie" and say I'm making a fool out of myself? Interesting. Btw. a Passat is perfectly fine for hauling a family of four and th
72 Thumper3181 : Alogos see post above. Then read your response. I stand by my statement about Euroweenies.
73 TheSonntag : Ever driven a Diesel engine? Plenty of torque available at 1200 rpm. Standart in Europe. And what use is the torque when most power is lost in an ine
74 SCCutler : There have been, in this thread, many cogent and well-supported observations. The one quoted above is not one of them. The US auto industry (spurred
75 Post contains images RayChuang : Folks, I think one of the big issues with the B-segment automobiles in the USA is the worry about accommodating American-sized passengers or flexibili
76 TheSonntag : While I still think that many cars in the US consume way too much fuel, you are right that US emission regulations were absolutely very innovative an
77 Thumper3181 : Like which ones?
78 TheSonntag : All light Trucks, all SUVs, I could continue the list endlessly.
79 Thumper3181 : Yet another circular discussion with an arrogant, ignorant german . You just don't get it do you? What works in Europe does not necessarily work in t
80 Post contains links and images Luisde8cd : Sure. http://en.wikipedia.org/wiki/Emissions_trading http://en.wikipedia.org/wiki/Kyoto_Protocol The US produces 25% of the world's carbon emissions.
81 StarAC17 : If someone has an SUV for this purpose fine then prove it and we have no right to complain about it. However a good majority of SUV owners don't use
82 TheSonntag : No comment.[Edited 2005-10-09 19:28:32]
83 TheSonntag : Why doesn't it work? Is a small car unable to drive on US roads? Is an Opel Zafira with 7seats unable to drive on US roads? And why shouldn't I tell
84 Post contains images Aloges : Good idea. Don't feed the trolls.
85 Post contains images Thumper3181 : Since when do we live in a totalitarian society? Perhaps we should target people who do not insulate their homes verry well. Hey, lets outlaw ice cre
86 TheSonntag : You need all of those when you drive to work every day. If you actually had read my posts, I actually agree why fuel prices are lower than in Europe.
87 StarAC17 : Fine you are right there but it is the SUV drivers that are the ones that complain about the gas prices. You don't often find the driver of say a civ
88 Thumper3181 : No but you pick up the kids after work, go shopping on weekends, take the dog (and kids) to the beach, etc. How many different ways/times o you have
89 B744F : They can use the Saudis to manipulate the price of oil by increasing or decreasing supply. Ever heard of the supply chain? Who is "everyone"? You mea
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