Gasoline prices are not rising, the Dollar is falling

February 24, 2012 by · Leave a Comment
Filed under: Commodities News 

This was insightful commentary with a serious conversation about the ratio of gold / dollar and oil prices.  With large amount of debt issuance ahead to cover current budgets and long-term liabilities, it is almost “in the bag” that we will see higher prices ahead.   We will see some major corrections along the way the will allows commodity prices to fall across the board then we will be talking about the doom of deflation (I actually think this will be needed to bring incomes and cost of living back in-line) then the bulls will come out again to pump it back up.   Its a cycle but in the end, the trend is certain, higher prices for things you “need”, lower prices for “wants” (better production but not enough demand) and steady or falling wages and they will translate into the fore mentioned scenario.

We have too much debt in our system and not enough money to pay it off.   Our track record on letting things default and fail not good, so the assumed course of action will be more support and debt to try and keep things smooth.  This will not work because of the debt issue and the scarcity of money we have created with issue money as a debt instrument in society.  This will be the defining issue we will tackle in the next 25-50 years and it will shape our society beyond that.

Forbes – Panic is in the air as gasoline prices move above $4.00 per gallon. Politicians and pundits are rounding up the usual suspects, looking for someone or something to blame for this latest outrage to middle class family budgets. In a rare display of bipartisanship, President Obama and Speaker of the House John Boehner are both wringing their hands over the prospect of seeing their newly extended Social Security tax cut gobbled up by rising gasoline costs.

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