Reality Check: The Fiat Dollar is the Real Reason for High Gas Prices

Reality Check: The Fiat Dollar is the Real Reason for High Gas Prices

www.fox19.com

Who's at fault? Is it President Obama for not drilling enough? Is it OPEC for price fixing? Could it be greedy oil companies?

There are many reasons being floated as to why gas prices are so high but there is one that you aren't going to hear from most media and it is tied directly to the value of the dollar in your pocket.

Ben has the Reality Check.

(visit the link for the full news article)

I hope this hasn't been posted yet. I performed a search and didn't find it listed. Watch this video for an explanation why the gas prices have been soaring. Ben Swann has a pretty good explanation, and I do tend to agree with him on this. Our dollars continue to lose their value while the Federal Reserve keeps on printing billions to cover the Government's debts.

Perhaps this could (and most likely does) also explain why the cost of living has gone up. Everything from food, rent to energy has been bleeding us dry, while salaries aren't going up fast enough to keep up with these changes. I remember 15 or 20 years ago when my father could take care of a family of four on a $15.00 an hour paycheck no problem. These days a person can barely support themselves for that kind of money (at least that's the case in California these days).

This theft of wealth is criminal.

www.fox19.com
(visit the link for the full news article)

reply to post by 2manyquestions


Obama needs to approve the Keystone Pipeline.

He should also remove ALL requirements for - blending - in all 50 states.

Originally posted by 2manyquestions

Reality Check: The Fiat Dollar is the Real Reason for High Gas Prices

www.fox19.com

Who's at fault? Is it President Obama for not drilling enough? Is it OPEC for price fixing? Could it be greedy oil companies?

There are many reasons being floated as to why gas prices are so high but there is one that you aren't going to hear from most media and it is tied directly to the value of the dollar in your pocket.

Ben has the Reality Check.

(visit the link for the full news article)

Okay, that is a reality check from an opinionist working for FOX news....get real...you know it is fake.

Reality check for Ben...

Increase in China's Demand & Speculation about Oil

www.time.com...

The major cause of current high oil prices, of course, is record demand, fueled first and foremost by China's booming economy. "China is the major factor in demand," says OPEC research director Hasan Qabazard. He predicts that world oil demand will increase about 30% to 118 million barrels a day by 2030.

Then, there's the question of speculation and exchange rates: Investors have poured billions into oil futures, in part because oil is priced in dollars, meaning that its price soars as the dollar sinks. "There's only so much OPEC can do, because we have no influence over those factors," says Qabazard.

Soaring Demand by China & India & US for Oil

middleeast.about.com...

Soaring demand, especially from developing nations such as China and India. In 1986, China consumed 2 million barrels of oil per day (com pared with about 16 million barrels per day in the United States at the time.) By 2006, China was consuming more than 7.4 million barrels per day, according to the U.S. Energy Information Administration , and rising. In April 2008, China Daily reported that China’s oil consumption had jumped another 2.5% over a year earlier.

In India, oil consumption has risen from just over 1 million barrels per day in 1990 to 2.63 million barrels per day today. And let’s not forget the United States, which consumes more than a quarter of the world’s combined energy products. Energy demand is growing there, too, despite an economic slowdown in 2008, to 20.63 million barrels of oil per day in April 2008, compared with 19.6 million barrels per day in 2000.

Worldwide, year-to-year demand for oil has increased by over 1 million barrels per day on average every year since 1991. The increase was especially steep in 1999 (when demand increased by 1.7 million barrels) 2004 (2.6 million) and 2007 (1.7 million).

Tensions with Iran, Improving Economy Boost Oil Prices

www.ktvq.com...
Posted: March 1, 2012

Gas prices have been rising on the back of soaring oil prices, which have surged 10% over the past month amid fears that tensions with Iran will lead to an all-out war that causes a disruption in oil supplies. But despite this increase, U.S. crude oil prices continue to decline.

Signs of an improving economy have also been boosting oil prices, along with the stock market. All three major indexes hit multi-year highs this week, and the S&P 500 has risen by more than 8% in 2012.

But most importantly to note is this fact that I found by researching middle east news...

Sanctions on Iran Hike Gas Prices

www.middle-east-online.com...
Posted: March 1, 2012

The tightness in oil supply is primarily caused by the U.S. war drive and interference in the domestic affairs of other countries. The damage is felt not only by the oil producing countries but also the European countries in recession and the consumers in the developed and developing countries through higher prices at the pump stations and heating their living spaces, not to mention the commercial enterprises.

So it looks like war, law of supply and demand, and investing factors play a huge role in determining the price you pay at the pump!

reply to post by Eurisko2012


If you watch the video it explains why drilling for more oil may not be the answer to lower gas prices. The real issue here is the value of our dollars plummeting as the Feds continue to print more and more, flooding the market with dollars. Drilling will create new jobs and I'm not against it, but it's not the answer to the real problem.

reply to post by Skywatcher2011


While I appreciate your input and take into consideration what you've posted, you obviously haven't familiarized yourself with Ben Swann. He's not just another FOX news "opinionist", he touches on subjects that no other main stream media outlet is willing to do. You can check his past "Reality Check" reports here: Ben Swann Facebook Page Although I can't say that he's right 100% of the time, the man has earned my respect for digging a little deeper and exposing issues that nobody else is willing to expose. I wouldn't put him in the same category as most FOX news reporters. He does his own research and retains control of his own segment. How long will they allow him to do so I'm not sure, but I do put him in almost the same category as Judge Andrew Napolitano.

Btw, here is Ron Paul's view on the Fiat Dollar:

Ron Paul Dollar ∞ End the Fed illegal Immoral Fiat Counterfeit Gold or Silver is Real Money

thats crap, and a whole load of it. If I was Saudi Arabia I would team up with some Global Energy Corp security team who would team up with some central intel group to stir grap in a global environment so as to get the SPECULATORS to drive up the cost of OIL.

oh no mr.Bill!!!

As china continues to climb the power structure they will consume more energy and eventually the scale will shift, we will become old china and future china will become present us. There citizens will have a higher stand of living and we will become poor(er).

A fiat currency is one reason...another is crappy foreign relations with the countries that produce it.

reply to post by 2manyquestions


Regardless of who said it or on what station...I agree with you, it makes sense.

For example, if wheat production and consumption stay the same this month, as well as the gas prices, and you go to the market right now and buy a loaf of bread for $1.00, then go back on the 30th and it's $1.50....what else COULD it be other than the fall in the value of the dollar? And don't say price fixing because grocery stores are too competitive for that. Their profit margins are too slim for it to be otherwise.

Opening up more oil reserves on this continent certainly would help, considering how much more China is consuming, but it's not going to fix everything. Ron Paul has it right here in that we have to get back to the gold standard.

reply to post by Skywatcher2011


whoa calm down killer. the price of a gallon of gas is equivilent to the price of a silver dime. soooooo... in brass tax that means that what would of been 10 cents back before the fed is now about $5. you can't deny that.

ETA:

Originally posted by 2manyquestions
reply to post by Eurisko2012

 

If you watch the video it explains why drilling for more oil may not be the answer to lower gas prices. The real issue here is the value of our dollars plummeting as the Feds continue to print more and more, flooding the market with dollars. Drilling will create new jobs and I'm not against it, but it's not the answer to the real problem.

yeah seems like a lot of people didn't even watch the vid. i agree with the faux news guy on this issue and in reality is is a supply and demand issue, just not of oil. the supply of dollars is continually climbing so the value is lowering. i'm unsure why it is hard for some people to grasp this. fiat currency's the more you make based on thin air, the more the value drops.

I was thinking about posting something about the incoming inflation we are starting to see relating to energy and everything else the other day but never got around to it.

Inflation and Energy Costs (specifically oil) have a very complex relationship. Oil costs can increase the price of everyday goods like milk and bread because oil is required to produce and transport the product. This causes inflation because literally every physical product we buy requires the transportation of the product (often to multiple places). Suddenly every dollar is worth less.

Making matters if the money supply is too high which is a common cause of inflation the general value of the currency goes down. This also means it takes more currency to purchase everything (including oil). This just feeds the cycle compounding inflation.

So inflation may be causing higher oil prices, but higher oil prices will also compound that inflation...

We're kinda screwed.

reply to post by diddlydo


Excellent point. All these things intermingle to cause prices to rise. My concern is that people ignore the depreciating currency issue and the printing of money. I think most of ATS is already aware, but the rest of the people are not. They don't think about it and it needs to be brought forward.