Jack Bauer had has magic bag of guns, John Reese has a magic suit that can hold an SLR camera #personofinterest
Friday, 18 May 2012
26February
The Price of Gas
It's not as high as you think...
I recently came across a thread on a friend's Facebook profile discussing the price of gas. The usual reasons were offered up, we don't drill, the Middle East is getting rich off of us.
To be sure, the cartel that controls production in the Middle East does control the free flow of oil, and we could drill in Alaska. But people forget about one of the most significant reasons why gas, or actually the price of everything, is higher: the inflation of the currency by the Federal Reserve.
Though it has been volatile from time to time, the price of gas has actually been pretty flat relative to to the price of gold: In 1950, 1 barrel of crude went for 2 grams of gold, in Dec 2010, 1 barrel of crude also went for 2 grams.
Sure, the cartel controlling production and us not drilling is an issue, but the Federal Reserve devaluing the dollar through inflation is also a major reason why gas, along with everything else, costs more and more. We're just now beginning to feel the effects of Bush and Obama's massive bailouts. Once the banks stop holding that money and start lending it, $4 may be the new norm.
Though it has been volatile from time to time, the price of gas has actually been pretty flat relative to to the price of gold: In 1950, 1 barrel of crude went for 2 grams of gold, in Dec 2010, 1 barrel of crude also went for 2 grams.
Sure, the cartel controlling production and us not drilling is an issue, but the Federal Reserve devaluing the dollar through inflation is also a major reason why gas, along with everything else, costs more and more. We're just now beginning to feel the effects of Bush and Obama's massive bailouts. Once the banks stop holding that money and start lending it, $4 may be the new norm.
About the Author
Winston Baccus
Trying to follow Christ, husband of Jamie, father of Anna, a designer who does web and print work, an alumnus of the University of Alabama, interested in the emerging church, a Mac fan, a Camp Sumatanga junkie, a program coordinator for high school camps in the United Methodist Church, a music snob, a budding oenophile, a libertarian, debt-free, a geek
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