Why Gas Prices Are Actually Falling
When viewed in relation to gold, gas prices are low only 82% of their average over the past 41 years.
“Gas prices arent high. The dollar is just falling, its value being undermined by politically-driven over-issue. So if you count the Fed-issued dollars as money and are actually using it as a savings vehicles then your world is being rocked by rising gas prices (and rising prices in everything else, too, except for computing power).”
“Also the price of oil has tended to track the price of silver awfully closely for about as long as oil has been industrially useful. And so its no mistake that you can still get a gallon of gas for about about $0.20 as long as that $0.20 is composed of a pre-1964 90% silver dimes.”
The currency is being debauched by taxing us via the Fed Reserve trying to prop house prices up so that it can keep lending to the government without tomorrows. This is inflation. We are indeed preventing inflation if the house prices do not follow the FEd slum lord’s greed.
We are cannibalizing by speculation, rotating the price of houses and Wall STreet Financial products in buy and sell schemes.
We are headed for a sponsored up spiral before the whole castle of cards is going to go down.
When EUrope bails out greece, the market player who KNOW it’s going to fail, pour their money in the market and wait for the next announcement to buy options to sell. Then the announcement comes, and they make a profit off of the options, effectively bailing out BEFORE it all crashes down.
The government is poised to tax these saavy people using OWS scheme.
Watch the scumbags in action.
That’s a good reminder, I need to get some more of those pre-64 dimes. Thanks!
I like that you relate purchasing power to gold, and you could also look at silver. I think the flaw is that Americans are not paid in gold or silver and have not been over that time. Our money has been debased and the high price of gold and silver is a symptom of that.
Consider Henry Ford’s $5 work day. At the time gold was worth $20 per ounce. So unskilled labor was earning about $425 per day in terms of gold today. That comes out to $110,500 per year. How many unskilled laborers are making even half that today?
Another example from 1963 using silver. When my mom got her first teaching job out of college that year, she was paid $100 per week for 40 weeks of teaching. A silver dollar was 90% silver at that time. So she was being paid 90 ounces of silver per week. 90 ounces x 40 weeks x $35 per ounce in today’s dollars would be $126,000 per year for a teacher right out of college.
These two examples show just how poor and how little purchasing power the average American has relative to what they had in the past. This is why we need a two income family to have the same lifestyle as a single income family had in the past.