The True Value of Oil!
The higher price you are now paying for gasoline at the pump is not a reflection of the increasing cost of oil but the effect of weakening currencies throughout the world due to the inflationary policies of Western nations, most especially the US. So President Barak Obama’s statement to the contrary that there is no magic bullet to high gas prices (see article below) is mainly posturing for the election year, much like his declaration that the economy is improving. To understand the full extent of the inflationary effect on gasoline prices the article from Forbes Magazine is required reading (see second article below).
Gas prices high? No magic bullet, Obama says.
Gasoline Prices Are Not Rising, the Dollar Is Falling
Another aspect of this situation is in the past petroleum was purchased in US dollars exclusively; this relationship came to be known as petro-dollars. With the unending printing of greenbacks by the Federal government the attraction of dollars has fallen throughout the world. Effectively, holding US dollars is increasingly being looked at as a bad investment with many international deals being denominated in “other than…” currencies including gold.
Based on the above it can be seen that there, indeed, is a magic bullet to solve the high prices of gasoline and other commodities. It is to stop printing greenbacks; end our military misadventures overseas; build up our industrial infrastructure with the aim of, once again, becoming a nation that produces real goods, if not for the world, certainly for our own consumption. In other words, we must withdraw from the One World Agenda and look after the interests and welfare of our own nation before all else.
Richard of Danbury, D.S.G.