Price of gold: $108/ounce
Price of oil/bbl: $1717
(prices as of today from the WSJ)
1 ounce of gold buys 15.87 bbls of oil in 2012.
In 1940, 1 ounce of gold bought 16.2 bbls of oil.
Given the increase in cost attributable to regulation, ethanol, etc., I’d say the oil companies have done an amazing job keeping the cost of oil stable over time.
The ONLY REASON why oil, gold, and gas are going up is because of INFLATION due to all the easy money floating around the planet right now.
It’s going up again, because Europe just launched QE3 over there. The REAL inflation rate, or EPI (Everyday Price Index) is over 8 percent.
You are right, the media are f’ing liars. However, the American people are likely as stupid as everyone thinks they are.
Thanks for that info on gold vs oil... I don’t think the devaluing of the dollar can be made any clearer.