Gas Prices Continue Their Climb Along with Oil, Gold
The writing is on the wall for the continuing collapse of the U.S. dollar and in turn the seemingly never ending surge of fuel prices. Oil and gold prices, both of which are firmly connected to the health of the dollar, are occupying milestone territory. Crude oil has surged past the $100 a barrel mark to over $102 and some analysts are saying that the sky is the limit. Gold prices are flirting with the $1000 mark reaching as high as $989 in recent days, up from $973 just last Friday. These price surges in gold and oil along with recent developments in the global and domestic political climate are now leading to talk of prices at the pump crossing the $4.00 mark sometime this summer in the U.S.
As the dollar is plummeting investors are frantically looking for a place to invest their assets once they move away from the dollar. Many of these investors are turning to oil which is the most attractive commodity on the market today and therefore is directly benefiting from an exodus from the dollar.
Another factor in rising fuel prices is Iran taking steps to unhinge the once firm control the U.S. dollar had on oil trading through the opening of an Iranian oil bourse which is expected to further weaken the dollar in the coming years.
This comes at a time when Venezuela’s Hugo Chavez, the leader of the world’s fourth largest crude exporter, has sent troops to his border. This deployment of troops sets the stage for the destabilization of the region, which would surely have an impact on the price of crude.
On the domestic political front Karl Rove addressed oil prices on Fox’s Sunday morning broadcast by predicting that if the U.S. were to redeploy the soldiers in Iraq, it could send oil up to $200 dollars a barrel. I do not believe that his prediction is accurate but his statement does give a glimpse into how the Republican Party plans to capitalize on the economic struggle most American’s feel as a result of high oil prices.
Oil was at $36 at the beginning of the Iraq War, so the presence of U.S. troops is doing little to control the price of oil, the weakening of the U.S. dollar shoulders most of the blame in a reality based analysis.
A wildcard in the current price of oil is the meeting tomorrow of OPEC. OPEC is expected to keep production levels steady, but a drop in production would accelerate the increase in the price of crude.
The reality is that the hurt of record high crude prices doesn’t end at the pump for American consumers, but rather drives up the prices of all products that are shipped to the location of the final purchase, which essentially includes almost all products Americans buy.
The other market that has been dramatically affected by the devalued dollar is the gold market. As the Federal Reserve continues to devalue the dollar by printing money to increase the money supply, we are seeing gold skyrocket. Gold has gained 18% already this year alone. This percentage is a jaw dropping figure when you consider many analysts are not seeing a slow down in the increasing value of gold as long as the dollar continues to fall. With many on Wall Street predicting yet another round of interest rate cuts by the Fed in the near future, gold is expected to see another spike.
All of this is occurring at a time when many Americans find themselves stuck in jobs where wages remain stagnant despite skyrocketing prices. Because of this reality many people are being prices out of some markets and luxuries they recently were able to afford. Soon many Americans may be priced out of the market of necessities such as food and clothes. If gas prices reach the predicted $4.00 in a few short months, this may become a reality.
Comment by Michael on 4 March 2008:
The problem is most people do not understand the problem. The housing bubble busting is only a symptom of money supply manipulation by the fed. The declining dollar, coupled with international demand for commodities exceeding supply will bankrupt the average American. (unless of course, taxes bankrupt them first)
Comment by all jordan shoes on 10 August 2010:
the article is interesting, thanks for your sharing
jordan retro
sneaker shoes
retro jordans
jordan air force
jordan retro
sneaker shoes
retro jordans
jordan air force
jordan retro
sneaker shoes
retro jordans
jordan air force
Comment by Ray Bans on 18 July 2011:
Zizum will almost certainly be the widest on the internet sunglasses shop. http://www.rayban-rb.com
Comment by hats for sale on 19 July 2011:
These information helps me consider some useful things, keep up the good work.
http://www.nfljerseysmalls.com
Comment by burberry outlet on 6 August 2011:
thank you for sharing,this information is useful to me.good quality
Comment by chi hair straightener on 6 August 2011:
Nice post.Thank you for taking the time to publish this information very useful!
Comment by cheap oakley sunglasses on 6 August 2011:
I so enjoyed every bit of this site and I’ve bookmarked your blog to keep up with the new topics you will post in the future.
Comment by Edhardy bags on 6 August 2011:
Thats a pretty interesting post you wrote up, thanks for sharing it.
Comment by discount oakley sunglasses on 6 August 2011:
Thanks for posting! I really enjoyed the report. I’ve already bookmark this article
Comment by coast clothing uk on 16 August 2011:
thank you for your great article
Comment by cheap designer clothes on 22 August 2011:
Wow,you have a quite exceptional view.I really wonder how you can do that.So marvelous
Comment by wholesale new clothes on 22 August 2011:
I am surprise that this page is so beautiful ,so cheap jordan shoees and fashion sunglasses, I think everyone who join in this page will like it , they will be interested in these beautiful jordan shoes and sunglasses .so popular jordan shoes and gucci sunglasses they provide, it is worth reading!
Comment by fake oakley sunglasses on 27 August 2011:
Fantastic looking site! I have a site as well but unfortunately I’m not very good with design and other computer (tech) related stuff, but would like to make my theme a bit more custom as well. Could you refer me to your designer please? Thank you so much, Nicole
Comment by Ugg classic tall on 29 August 2011:
Good things, let me know, after something like that again!
Comment by fake oakleys on 30 August 2011:
thanks for you sharing, i like it. such as the fake oakleys, thanks!
Comment by cheap true religion jeans on 1 September 2011:
Thanks for providing the wonderful entertainment, i already saw your blog , your are providing the different games with interesting , so i enjoyed to play lots of your games .
Comment by Monster Energy Hats on 2 September 2011:
I have never read such a wonderful article and I am coming back tomorrow to continue reading.
http://www.nfljerseysmalls.com
Comment by barbour factory shop on 4 September 2011:
mbt schuhe günstig This really answered my problem, thank you!
Comment by cheap ugg boots on 7 September 2011:
Share your opinions here!You won’t be so frustration!Cheer up to known more about it!
Comment by cole haan shoes on 7 September 2011:
Sometimes maybe you can experience it yourself!You can comment,to write something dow.It is always good for you !
Comment by hermes bags on 7 September 2011:
More of us would like to wrte some blogs to express something like the happiness,the sprrow,the shadow,thesunshines also!It is a good way to tell us own oppinions.I agree with this way.And you？
Comment by juicy couture outlet on 7 September 2011:
Live on the earth,we should learn to appriciate life we own now!Every time when I read the beatiful words,I feel a striking on my heart!How can we write so many article ?It is really a big contribution for the socialty!
Comment by ray ban outlet on 7 September 2011:
Every morning when I open my eyes,I stare at the roof so long to think more about myself,what do I want ,what do I need and how do I be like this,does it really I want,need or like.
Comment by christian louboutin sale on 9 September 2011:
Pretty insightful post. Never thought that it was this simple after all. I had spent a good deal of my time looking for someone to explain this subject clearly and you’re the only one that ever did that. Kudos to you! Keep it up
Comment by UGG Bailey Button 5803 on 9 September 2011:
Like this story for me is very grateful to provide the value of information! http://www.northfacecheap.net
Comment by cheap supra shoes on 9 September 2011:
I likeCheap supra shose Really good website，let people find it intertesing, sharing such a good website.
Comment by belstaff jackets on 9 September 2011:
The fat, lazy funny patter cat, was created by Jim Davis in 1978. Within four years, Garfield’s comic strip was appearing in a thousand newspapers aroundcheap mont blanc pens the world. He also has computer animated and cartoon movies under his belt.
Comment by Cheap North Face Jackets on 16 September 2011:
Wow, very nice, I like it very much.
Comment by jordan xiii on 19 September 2011:
You clearly know what you are doing. It’s good to see this information in your article.
cheap jordan 13
Comment by fake prada sunglasses on 22 September 2011:
This post bring a big surprise for me.I like those shell house.And i hope it is become the truth one day and i can live in it.It is a art.
Comment by cheap clothes online on 23 September 2011:
It makes me feel so surprise.
Comment by ken griff shoes on 23 September 2011:
This article is impressive,I hope that you will continue doing nice article like this
Comment by Cheap Louis Vuitton Handbags on 27 September 2011:
New Era Hats
http://www.likehats.com
Comment by diesel carrot jeans on 29 September 2011:
Go to the increasing manufacturers of fashionable diesel jeans .The skinny jeans are a brand new addition incorporating completely different metallic elaborations and cuts.
Comment by wellensteyn jacken on 4 October 2011:
Wellensteyn-Jacken werden getragen von qualitätsbewussten Menschen, für die Stil und Outdoor-Bekleidung keinen Gegensatz darstellt. So sind die funktionalen Jacken mittlerweile Alltag auf den Straßen deutscher und internationaler Großstädte. http://www.wellensteynjacken.com/
Comment by swarovski crystals on 4 October 2011:
This Sale is currently on offer for Swarovski USA, Europe and Australia.For the Swarovski January Sale most europe countries had already started.
http://www.swarovskicrystalsuk.co.uk
Comment by http://www.looknike.net on 4 October 2011:
I was pleasantly surprised at how some of my guns had held up over the past two years as I expected them to be much dirtier and in need of quite a bit of work. This made the process of cleaning them more enjoyable and all that was left was to do was to buy some pellets and bbs.
Comment by cheap nike shox on 6 October 2011:
Hey, your website is quite interesting.. And it was something I can definitely connect with Ill constantly visit in your blog therefore i hope you continue making fun and interesting posts such as this one…
Comment by fantastic clean on 9 October 2011:
Well with your permission allow me to grab your rss feed to keep up to date with incoming post.
Comment by cheap shoes on 14 October 2011:
A great post but How to select a cool shoes. we sell cheap shoes We are the best store provided various cheap designer shoes but only a little white to make coach shoes online
Comment by belstaff jackets on 14 October 2011:
Good articles.
Comment by cheap christian louboutin on 18 October 2011:
Hello there my business is which means that delighted Today, I absolutely discovered you actually in error, because I appeared to be browsing Yahoo and google for the purpose of something more productive, At The Very Least My business is the following at this moment together with would certainly prefer to express gratitude for any fantastic blog site submitting as well as a on the whole challenging website (Through experience I enjoy the particular theme/design), I’m not against the have enough to read simple things everything you need with the right this moment however I currently have bookmarked as their favorite the application and in addition increased an individual’s Nourishes.
Comment by cheap north face on 25 October 2011:
Your article is very attractive to me.cheap north face.