The value of gasoline is going down. When President Obama took office, gasoline, measured in silver, was worth 1/6th an ounce of silver. Today, gasoline is valued at 1/10th of an ounce of silver. Gasoline measured in gold is also plunging.
So why are gas prices going up? It has a lot to do with the falling value of the dollar. Do you expect the oil-rich countries to trade as if the dollar is now worth what it was worth ten, even four years ago? Read more: Economics Fanatic
President Obama could do something about this. He could stop spending and move towards cutting the deficit as opposed to printing funny money and pushing credit default swaps through the feds.
Do you ever wonder if all these countries that hate us and want to get off the dollar feel that way for good reason? Suppose you are one of the countries that loaned us money four years ago at a higher dollar value and are now getting paid back in cheaper dollars because the feds are printing funny money. It’s equivalent to your neighbor driving around in a Mercedes and then collecting food stamps.
We borrow from everyone and I am sure they are not happy that we are cheating them on their return.
Other countries do not owe the United States much because we either give it away or we forgive the debt. We recently forgave 83% of Egypt’s debt to us. We make a habit of that. Even as we owe people money, we give them free money. We even give aid to China. Obama could do something about this obviously.
Another fact is that the EU which we continually pity has a total debt of $6 trillion and ours is nearing $16 trillion. It is time for us to look inward for our problems.
The other thing we hear is that gas companies are getting rich by inflating prices. The facts are that the government is making the big bucks. Who’s gouging? How about a tax holiday? It’s not what a free market is supposed to do.
Ron Paul claims the profit is seven cents a gallon. Democrats point out this does not include the profits on crude. They also claim that refineries are holding back on production, keeping it at about 87% to manipulate prices. There is also the gouging by speculators. All these arguments have merit but the one thing that sticks out is that no one is talking about the record profit by government. Granted they give subsidies but they are meant for exploration and improvements for the most part and the government is still making money off the gas companies.
There is no easy answer but one thing needs to be considered, could the government reduce their profits?
Other Sources: –
Information about who we owed money to when the debt was $14.3 trillion – Washington Post
Countries who hold our debt as of 1/2011 – Wiki