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I remember the cost of gasoline was about $1.20 a gallon for most of the 1990s. Then once Bush started as President and China started booming the cost went up up and up.
Now it is finally coming down. I heard someone say when they saw gasoline at $2.68 a gallon in OK, that the price for gasoline is finally getting fair again.
Just what is a fair cost for gasoline in today's world? At what price would you feel that everyone involved in the process would get their fair share? Hopefully you can give out a dollar amount.
Hello Refugee56,
Based upon your handle "Refugee", it would need to be cash only. It also depends, where are, stranded in a desert perhaps? I can run some out to you... for a price, which will be... "fair".
the price of gas is heavily based off of the strength of our currency. right now, the dollar is strong because the whole world is undertaking this recession along with us, therefore, we are seeing oil prices drop at the rate of gravity. once our government starts printing craploads of dollars off the printing press to bail out the banks, etc. expect expensive gas.
the price of gas is heavily based off of the strength of our currency. right now, the dollar is strong because the whole world is undertaking this recession along with us, therefore, we are seeing oil prices drop at the rate of gravity. once our government starts printing craploads of dollars off the printing press to bail out the banks, etc. expect expensive gas.
A strong currency is a bogus idea in terms of the reality of the situation. ALL fiat currency goes down in value over the long term. This is because all fiat currencies are printed and there is very little emphasis on slowing the printing down. A strong currency is an illusion. What it means is that the dollar isn't being printed as much other currencies and hence our dollar appears to be getting stronger. Over the long term is what counts here. It is like holding two stocks and one went down 5% and the other went down 10%. Then saying that the one that went down 5% is strengthening. The reality of the situation is that you both lost money and both stocks were a bad investment.
I am assuming you are saying the dollar is strengthening because of the USD index, right? If you looked at how the USD is calculated it will make perfect sense to you why the dollar is, "strengthening." According to wikipedia it is calculated at follows:
Quote:
The US Dollar Index (USDX) is an index or measure of the value of the United States dollar relative to a basket of foreign currencies. It is a weighted geometric mean of the dollar's value compared to the euro (EUR), Japanese yen (JPY), Pound sterling (GBP), Canadian dollar (CAD), Swedish krona (SEK) and Swiss franc (CHF).
It is weighted as follows:
Notice that the EURO accounts for 57% of the weight. What do you think is happening to the EURO right now? This is what is happening.
You see, when you break it down it is nothing more than an illusion. The price of gas is going up because of inflation. Very little of it is from demand. The mass media leads you to think it is from speculation and greedy oil companies. It is far from the truth. The reality of the situation is that it is the government that is printing money like no tomorrow. Unfortunately, not many realize this and as a result they will continue to have their savings and hard earned purchasing power robbed of them.
If you think gas is expensive now, just wait a couple more years when all the inflation from all the trillion dollar bailouts starts to trickle through the economy. You'll be saying, "Wow, I can't believe gas was only $3.50 back then." I guarantee you that!
Gas is cheap now because world demand is low conpare to just monthsa ago. In fact it is likel;y that OPEC will meet and lowweer production.Many commodities have gone south just look at aluminum prices and even copper. deamnd plays a huge role. But in oil lower rpodution set by OPEC can make for a false market.Looking at the price today I saw gas sellign for 2,64 a gallon having falledn from 3;16 in just two days.
The price of oil is affected by the strength of the currency used. When funny money was being created at a rapid rate, fixed commodities inflated in price. The recent debt deflation caused oil to fall, but the relentless effort of congress and the federal reserve to fuel inflation has kept oil from falling to 30 or 40 dollars a barrel. If not for inflation, the price of oil would never go up until its supply would not be able to keep up. When the market is allowed to work, prices adjust. When Government or cartels get involved, we all lose.
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