Why is gasoline so expensive?!?!
The 350% increase in the price of oil is a direct result of inflation. Inflation is the result of the Federal Reserve printing money out of thin air to pay for big government spending. If money was still backed by gold, gasoline would cost the same as it did in 2000, approximately $1.50 per gallon.
As with anything, the more there is, the less its worth. However, the Federal Reserve no longer publishes a report of the money supply, known as M3.
What are they trying to hide?
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It's Ron Pauls Fault!!!!!!!!!!!!!!! 0 -
quote:Originally posted by git_r_done
It's Ron Pauls Fault!!!!!!!!!!!!!!!
Oh, you mean the same Ron Paul that wants to dramatically cut spending and the size of government, and abolish the Federal Reserve?
why of course!0 -
Taxes. 0 -
Our $$$ wasn't backed by gold in 2000. As a matter of fact I think Nixion took us off the gold standard in 1972.
Also how would the fed printing too much $$$ set the price of gas for foreign countrys?
Like it or not oil and gasoline is traded on the open market world wide just like corn,soy beans cattle,gold,silver ect. Contrary to popular belief Bush doesn't set the price of oil/gas. It simply goes to the highest bidder just like an auction on gunbroker and if no one is willing to pay the high price it falls.
Then there's the supply and demand issue that people refuse to believe.0 -
China- 0 -
speculators needed another "easy win" to invest in,
before 2000 it was tech stocks, that bubble burst;
after 2000 it was real estate, that bubble burst;
now it's oil futures... do you think it is a coincidence that oil futures prices soared from approx $60/barrel to $90-100/barrel at the same time the real estate market went down the drain?0 -
quote:Originally posted by KSUmarksman
speculators needed another "easy win" to invest in,
before 2000 it was tech stocks, that bubble burst;
after 2000 it was real estate, that bubble burst;
now it's oil futures... do you think it is a coincidence that oil futures prices soared from approx $60/barrel to $90-100/barrel at the same time the real estate market went down the drain?
Yes and gold/silver too. Gold now is near $900/oz and silver is $16/oz.
http://www.bloomberg.com/markets/commodities/cfutures.html0 -
quote:Originally posted by Hunter Mag
Our $$$ wasn't backed by gold in 2000. As a matter of fact I think Nixion took us off the gold standard in 1972.
Also how would the fed printing too much $$$ set the price of gas for foreign countrys?
I realize that the money was not backed by gold in 2000. However, the gold and currency values were nearly equal in 2000 in relation to oil.
And if there is a higher supply of money, than our currency will devalue, and be worth less in relation to foreign currencies.. therefore, naturally suppliers will want more US currency for the same amount of product.0 -
quote:Originally posted by Hunter Mag
quote:Originally posted by KSUmarksman
speculators needed another "easy win" to invest in,
before 2000 it was tech stocks, that bubble burst;
after 2000 it was real estate, that bubble burst;
now it's oil futures... do you think it is a coincidence that oil futures prices soared from approx $60/barrel to $90-100/barrel at the same time the real estate market went down the drain?
Yes and gold/silver too. Gold now is near $900/oz and silver is $16/oz.
http://www.bloomberg.com/markets/commodities/cfutures.html
Gold was at $901 today0 -
quote:Originally posted by ruger270man
quote:Originally posted by Hunter Mag
quote:Originally posted by KSUmarksman
speculators needed another "easy win" to invest in,
before 2000 it was tech stocks, that bubble burst;
after 2000 it was real estate, that bubble burst;
now it's oil futures... do you think it is a coincidence that oil futures prices soared from approx $60/barrel to $90-100/barrel at the same time the real estate market went down the drain?
Yes and gold/silver too. Gold now is near $900/oz and silver is $16/oz.
http://www.bloomberg.com/markets/commodities/cfutures.html
Gold was at $901 today
True but it closed at $881 today. Check the bloomberg link.0 -
Right now we pay 18 cents per gallon tax to the govt, i saw on the news, they want to bump it up to 40 cents per gallon. They say its for road repair. 0 -
quote:Originally posted by SuburbanNoize
Right now we pay 18 cents per gallon tax to the govt, i saw on the news, they want to bump it up to 40 cents per gallon. They say its for road repair.
What if I buy gasoline for my lawnmower? How come there is not "off-road gasoline" similiar to the "off-road diesel"? I shouldnt have to pay a road-tax if I'm mowing my lawn.0 -
Refining and producing gasoline. $$$$$$$$$$$$$$$$$$$$$$$$$$ 0 -
quote:Originally posted by ruger270man
quote:Originally posted by SuburbanNoize
Right now we pay 18 cents per gallon tax to the govt, i saw on the news, they want to bump it up to 40 cents per gallon. They say its for road repair.
What if I buy gasoline for my lawnmower? How come there is not "off-road gasoline" similiar to the "off-road diesel"? I shouldnt have to pay a road-tax if I'm mowing my lawn.
The problem there is I and many others would be filling a 5 gallon gas can saying it's for my mower then putting it into my car/truck gas tank.[8D]0 -
I agree with huntermag,about the trade market.Thing is, if our govt. can control price of milk,why not the price of oil? 0 -
oil quadrupled in price since we invaded Iraq. Think mid east turmoil may have anything to do with it? 0 -
If you think gasoline is expensive think what it would cost to fill your gas tank with bottled water. 0 -
quote:Originally posted by Hunter Mag
quote:Originally posted by ruger270man
quote:Originally posted by SuburbanNoize
Right now we pay 18 cents per gallon tax to the govt, i saw on the news, they want to bump it up to 40 cents per gallon. They say its for road repair.
What if I buy gasoline for my lawnmower? How come there is not "off-road gasoline" similiar to the "off-road diesel"? I shouldnt have to pay a road-tax if I'm mowing my lawn.
The problem there is I and many others would be filling a 5 gallon gas can saying it's for my mower then putting it into my car/truck gas tank.[8D]
Problem could be solved just like with off road diesel! Put dye in the fuel. And then run check stations that will check your car randomly for dye in the fuel.
I used to get stopped in montana alot to have my fuel tanks checked for dye.0 -
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Then how come a gallon of milk still costs me $2.50?
If that's true JP then everything would go up proportionally.0 -
quote:Originally posted by SuburbanNoize
Right now we pay 18 cents per gallon tax to the govt, i saw on the news, they want to bump it up to 40 cents per gallon. They say its for road repair.
Not bump it to 40.... add 40 more cents for a total of 58 cents a gallon.0 -
i fill my car up every 3 weeks. i spend the same amount for gas as i did 15 years ago. why? i dont drive much anymore! stop driving so far![:o)] 0 -
All around greed![}:)] 0 -
quote:Then how come a gallon of milk still costs me $2.50?
If that's true JP then everything would go up proportionally.
[:0]It's over $4, nearly $5 a gallon here!
They just came out today. or was it yesterday and admitted that "real income is down." No kidding!
Hunter mag, there is just no way to put a positive spin on this. .0 -
quote:Originally posted by jpwolf
quote:Then how come a gallon of milk still costs me $2.50?
If that's true JP then everything would go up proportionally.
[:0]It's over $4, nearly $5 a gallon here!
They just came out today. or was it yesterday and admitted that "real income is down." No kidding!
Hunter mag, there is just no way to put a positive spin on this. .
I know what your saying about the dollar JP and agree but it's not the end yet.[:0]
Milk is almost $5 where you live?[B)]
The cheapest where I live is actually $1.99 but I said $2.50 cause it fluxuates. Here I can pay $3.50 if I go to the major super markets. But anyway milk and bread has been fairly staed for 10 years or more but I live in the heart of dairyland.0 -
Y'all are dancin' all around the real reason: Dimocraps and their restrictive environmental policies have strangled the oil bidness, and no new refineries have been authorized in over 25 years!
We (US) are at 110% of capacity in refining right now, and if we want the price of gasoline to come down, we need to build more refineries, drill for more oil, reduce the environmental BS that stands in the way of our energy independence, go for shale sands, and other "new" deposits of hydrocarbons, and throw the Dims out of the oil bidness.
Price of gold, lack of ron paul, too many euros to count; all this is crap standing in the way of a very simple problems' solution.
See how far your car runs on smoldering Ron Paul bumper stickers.....0 -
Quote:
"The 350% increase in the price of oil is a direct result of inflation. Inflation is the result of the Federal Reserve printing money out of thin air to pay for big government spending. If money was still backed by gold, gasoline would cost the same as it did in 2000, approximately $1.50 per gallon."
A whole new theory of economics... I'm glad we got rid of that silly "supply and demand" idea.0 -
Inflation is a factor yes- but only because wages haven't inflated at a similar rate. Say someone was making $30k a year in 2000. Gas was about a buck and a quarter, buck fifty. Let's suppose that the cost of gas was SOLELY due to inflation (it wasn't)- for that to hold true, gas is now, say, $3 a gallon. Roughly doubled. Our hypothetical person should be making $60k.
He's not.
2 possible conclusions here. 1. Wages haven't kept up with the rate of inflation (true). 2. Gas prices have risen because of something besides inflation (also true).
See, it is a complex problem. Gas prices HAVE gone up because of inflation, no doubt. They have also gone up because of increased demand (China, India, and yes, the US- our demand is increasing) and only moderately increased supply. No matter how much OPEC pumps (or us for that matter) the refineries are the bottleneck- only so much oil can be refined into gas. Ergo- supply and demand.
Or should I say, PERCEIVED demand. The auction analogy is very good. Investors are bidding on oil at the price they THINK it will be worth- and that is in and of itself artificially inflating the price, because everyone is convinced that the sky is falling and that gas will be worth $100 a gallon next week and we'll pump out the last drop a day after that. I contend that this is a bubble and will pop, as surely as the tech market did in 2000 and the housing market appears to have done late last year.
Finally a word on gouging. The single biggest profit taker from gas sales is the government. They take up to 1/4 of the cost of that gas as tax, either directly at the pump or to the refiners, distributors, pumpers, etc.- cost passed on to you. If anyone is gouging you it is the government.
The oil companies are in business to make a profit. Say they make 5% profit on their product. To pay workers, keep up infrastructure, etc. Well- let's see. 5% of $1.50 is 7.5 cents profit. 5% of $3 is 15 cents profit. So, uhm..... of COURSE they will post record profits because their product is selling for a MARKET DETERMINED VALUE higher than previously. Add to that that they are selling MORE of it than ever before. AND passing their good fortune on to their shareholders. So...how are they gouging?
I hate the high gas prices like everyone but unless you want to drive a moped everywhere or can invent a way to burn water in your car (and yes, folks are working on it) there's not much you can do; so gripe all you want but don't blame any one group.0 -
Devaluing the dollar did not make oil prices go up. China and Inda are industralizing at a rapid pace. Meaning there are 500 million soon to be a billion more people out there that are going from walking to riding a motorcycle or a small car. Oil production is not a problem, it never has been. Refining is the bottle neck that process. Why would they want to refine more oil for less money? Barring another depression oil will all to soon be at not $200 but Im afaraid $300 a barrel. 0 -
Sounds kind of like an echo but I did begin to write my post before jonk's post was up. 0
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