Have you found yourself saying this? What American hasn't? I know I have. And then a certain Congressman (he shall remain nameless) made an interesting point. With a little research you will find that in fact, no, the price of gasoline has not gone up. The cost of gasoline has stayed almost exactly the same with virtually no price difference between now at an average of $3.20 a gallon and in 2000 when it was $1.15 a gallon. Allow me to explain.
As of 2/17/00
Oil - $30/ barrel (roughly)
Gold - $300/oz. (roughly)
1 oz. of Gold = 10 barrels of oil
Fast forward to today
oil -$100/barrel (roughly)
Gold- $985/ oz. (roughly)
1 oz. of Gold =9.85 barrels of oil
The same amount of Gold still buys 98.5% of the same amount of oil. Gold is arguably the world's oldest and most stable currency. So much so that the Constitution specifically states that only gold and silver may be used as legal tender (not that anyone in congress gives a damn what the constitution says).
Once again, this horrible issue rears its ugly head. The issue that the Obamas, Clintons and Mccains of the world will not touch- inflation and monetary policy.
Back in 2006, there was $10.3 Trillion US in total world circulation. As of 2008 that number has climbed to $14.6 Trillion. The Federal Reserve is creating new money at an alarming rate- over $166 Billion per month!! This is why $30 no longer buys a barrel of oil and $300 no longer buys an ounce of gold, and why $1.15 no longer buys a gallon of gasoline. The Federal Reserve has been watering down our dollars at record rates, and the best part? No one cares! If people would have listened to the politicians advocating the gold standard (where the dollar would be strictly tied to gold i.e. the bill would explicitly say THIS BILL REDEEMABLE FOR .01 OZ OF GOLD) low and behold gasoline prices would not have gone up more than a few pennies per gallon. Not only that, but our government would have had to restrain its spending all these years, bringing the accumulating national debt to a screeching halt. This would mean less annual interest, which would mean lower taxes, which would mean more money being spent by consumers, which would mean more jobs, more profits, more prosperity and a higher standard of living for all Americans. Well, of course no one cares about that! There are more important things to be worried about, like Terri Schaivo!
Congress allows this practice of no government oversight for new money creation (probably because the Constitution tells them exactly the opposite) as long as their line of credit is not turned off. We the people have been begging democrats and republicans to compromise on spending FOR YEARS. Well, let's applaud them for a job well done, because they did! However, rather than a compromise with each conceding to cutbacks, they've compromised by saying "Democrats, we'll fund your stuff as long as you agree to borrow to fund ours!"
"It's a deal!!" To the phones they go.
"Yep, thanks Mr. Bernanke, just throw it on our tab.. Yes OF COURSE we told the taxpayers there's interest.. Well, no, they probably don't know 40% of their income tax is used to pay it, but I won't tell if you don't! Oh and of course we're keeping you in tax exempt status, taxes are for working people. You think I just bought my incumbency with the help of the banking lobby yesterday?! Okay, you have a good weekend too. Bye now. :click:
"Oh, that Ben, such a kidder! Okay, got those Treasury bill IOU's written out?? Excellent! Everyone happy?? Okay Republicans, here is our $50 billion war check, Democrats, here is that extra $50 billion we promised in the stimulus package for people on unemployment. Oh and here you go, working class taxpayer, here is the bill! We couldn't have spent your earned wages without you! By the way here's your dollar, which we just devalued by about 60%. Thanks!"
Oh no, thank you Mr. Obama, Mr. Mccain and Mrs. Clinton, for leaving this out and discussing more pertinent issues, such as "Who would you rather have answering the White House phone at 3 am??". That definitely concerns me more than all the bills I can't keep up with, but as long as we're talking about it let's share our answers! Mine? Why, Mrs. Clinton of course! She's experienced! God only knows many times she's fielded those calls only to hear Bill on the other end "Hill! I'm drunk, and I can't find my keys! I think I left them in my pants at what'sherface's house.. but we totally didn't do anything!"
2008 Election, I for one can't wait for you to be over. Out of the three left, only Barack Obama gives me even a shred of hope that he will do the right thing (although in my heart I just know it's impossible). Believing in the Democrats has been like rooting for the Buffalo Bills in the Super Bowl (IT'S A DIFFERENT TEAM THIS YEAR, I TELLYA!)
