Are Gas Prices Rising or is our Currency Devaluing?
April 26th, 2011As debate continues Democrats are persecuting the corrupt oil companies and the Republicans push for exploration of domestic oil reserves, all the while our country sees a drastic uprising in the price of oil. Along with the supply, seasonal demand, and issues of the Middle East one contributing factor to our high gas prices is inflation. The prices are a dollar or more over last year’s average, and some states are even seeing prices well over $4.00.
The Federal Reserve has printed literally trillions of dollars in the past 3 years and finally we are having something to show for it. As people begin to grow upset over the increase in their traveling experiences, they should also pay attention to the price of their food and other commodities. It is likely they will find a trend.
Someone recently brought up the fact that Venezuela is currently paying $.14/gallon. Comparing that to the US you are probably thinking…what is Venezuela doing and how can we emulate it? Stop right there! Venezuela’s government, under President Hugo Chavez, subsidizes 90% of the oil in the country. Due to the artificially low prices Venezuela has lost out on significant revenue in exports, a crucial part to their economy.
So before you hop on the Venezuela bandwagon remember to think of the consequences of some humanitarian actions. It may seem generous of the government to provide such a discount to citizens, but let’s remember where government money comes from. So in order to make some happy the government is taking from others.
And in our country where the Fed is armed and ready to print when Congress requests, seeing prices sky rocket even more in the future may not be too far off. In 2019 our economy is in shambles and gas prices are over $40, under Chairman Brandt. Where will we go from here?
Gas Station in DC - 2019
