...the price of crude oil is high and rising primarily due to the 'goldless' USD losing its purchasing power, and secondarily due to the strong global demand for oil. That is why the same single barrel of oil that cost only $23 in January 1991 costs over $140 in July 2008...
Perhaps the riddle that the average American should be trying to solve has less to do with the price of oil going up and more to do with the purchasing power of the USD going down. The real questions that Americans should be asking are:-Why is the USD losing so much purchasing power?
-Why are our elected representatives in Washington, D.C. failing so badly in their constitutional mandate (Article 1, Section 8, “The Congress shall have power…to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures…”) to provide We the People with a stable currency -- a currency 'as good as gold', or at least a currency the supply of which is actively managed by the Fed to maintain the currency’s value within a narrow range of gold ounce prices?
-Why do We the People continue to elect representatives who think nothing of devaluing our currency through profligate printing and spending, rendering us all poorer and poorer as time goes by?
-When will "We the People" say 'enough is enough' and finally elect representatives who will honor their constitutional mandate to provide all Americans with a stable U.S. dollar?
Tuesday, July 15, 2008
The Other Side Of Peak Oil
SeekingAlpha - Why Are Oil Prices So High? Gold Solves the Riddle