Fed News Friday: Gas prices rising (I wonder why)February 24th, 2012
The Christian Science Monitor reports:
“Obama sought to deflect growing Republican attacks over rising prices at the pump, blaming recent increases on a mix of factors beyond his control, including tensions with Iran, hot demand from China, India and other emerging economies, and Wall Street speculators taking advantage of the uncertainty.”
But it gets better. It gets so much better. You’re not going to believe what else Obama actually said while defending himself against criticism over rising gas prices. It’s so perfect one can’t help but wonder if it was intentional and Obama is being deliberately, malevolently funny. Here it is, also from the Monitor:
“President Barack Obama hit back on Thursday at election-year Republican criticism of his energy policies, offering a staunch defense of his attempts to wean Americans off foreign oil and saying there is no “silver bullet” for high gasoline prices.”
Ha ha ha ha ha ha ha ha! No “silver bullet?” A silver bullet would buy a couple gallons of gas right now. But just how bad are gas prices getting in Federal Reserve notes? U.S. gasoline prices have jumped almost 9 cents in the past week to a national average of $3.61 a gallon. Analysts are talking about $4 a gallon gas by the summer driving season. In some places it’s already even worse than that.
According to CBS News Tampa:
“Talk about pain at the pump! Some Florida drivers are spending nearly $6 a gallon to fill up their gas tanks.
According to GasBuddy.com, motorists are shelling out $5.89 for a gallon of regular gas at a Shell station in Lake Buena Vista, topping out at $5.99 a gallon for premium. It doesn’t get better at a Suncoast Energy station in Orlando, where drivers are paying $5.79 for a gallon of regular.”
Republicans are definitely using frustration over gas prices to score electoral points with voters. Former House Speaker and Republican presidential candidate Newt Gingrich recently pledged $2.50/gallon gas if he became president. The problem is, most Republicans are focused on Obama’s fiscal and environmental policies as the root cause of rising gas prices.
These might certainly be factors, but only marginally so. The real cause is something more fundamental, something that most politicians and pundits always seem to ignore despite its sweeping effects on every aspect of economic and geopolitical life on our planet: MONETARY POLICY.
It’s easy to see that rising gas prices are probably not the problem, but a symptom of a broader problem because gasoline isn’t the only commodity whose price is rising. All kinds of global commodities from agricultural products and food, to fossil fuels, to precious metals are rising in price and have been for months and years now as we head ever deeper into the economic abyss of total monetary collapse.
With all of these prices rising, it’s far more likely that gasoline isn’t becoming more valuable because of problems and issues unique to its market– the Federal Reserve dollars that consumers use to purchase gasoline are becoming less valuable, so they need more and more of them to buy the same amount of gasoline (or milk, or bread, or silver, or gold). Just look at how many dollars have been created out of nothing over the last decade and it shouldn’t be very hard to connect the dots.
Another strong clue is that most commentators are blaming speculation for rising gas prices. In that CBS News Tampa piece, AAA spokeswoman Jessica Brady said: “I know it frustrates quite a few consumers why positive news [referring to some minor improvements in housing and employment figures] will lead to higher prices. It really just comes down to speculation.”
Anytime over-speculation drives prices artificially high in some market or other– like say… the housing market– you can pretty safely assume that artificially low-interest rates and easy money central banking policies are at play driving the boom. Again, this is a monetary problem, not a gasoline problem.
That’s why Gingrich can only promise $2.50 a gallon gas– a promise he probably couldn’t deliver if his second term depended on it. He doesn’t see the world’s economic problems in terms of monetary policy. He’ll use some of the rhetoric because it appeals to certain voters this election cycle, but he doesn’t fundamentally comprehend the over-arching influence of our system of money and the fundamental flaw in that system. That’s also why Gingrich didn’t see the housing crisis coming and Ron Paul did.
Last year, during one of the gazillion Republican primary debates we’ve seen this election cycle, Ron Paul, another Republican presidential candidate and a congressman from Texas, said he could get gasoline down to ten cents a gallon. He argued: “You can buy a gallon of gasoline today for a silver dime. A silver dime is worth $3.50– it’s all about inflation and too many regulations!”
Paul is correct. While ten cents in Federal Reserve dollars has lost its value over the last fifty years, a silver dime, weighing about one-tenth of an ounce, has kept its value and would buy nearly the same amount of gasoline in 2000 as it could have bought in 1950– not so with the Federal Reserve money.
The solution to rising gas prices is a sound money policy. If you’re frustrated by gasoline costing so many dollars, what you’re really frustrated by is dollars purchasing so little gas, and that is happening because the central banking policies of the Federal Reserve are defacing and devaluing those dollars.
President Obama insists that there is no “silver bullet” to solve the problem of rising gas prices, but we think silver circles could do the trick…
And don’t forget to visit our official website to learn more about the Silver Circle Movie:http://SilverCircleMovie.com