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There has been a lot of talk lately by anti drilling green types that all this new oil being produced in America isn't bringing the price down so why drill in America. They blame high prices at the pump on greedy big oil and even greedier investors but the truth is ......
"The primary reason that crude oil today – Brent is at $123 per barrel – is higher than its prior average around $20 in the 1990s, or the $3.00 of the 1960s, is that the dollar has lost value over that time. It doesn’t have much to do with crude oil itself. Today, an ounce of gold would buy about 14 barrels of oil. In the 1960s, it would buy about twelve barrels.
In 1960 dollars, which were worth 1/35th of an ounce of gold as per the Bretton Woods gold standard system, today’s oil would cost $2.51. It appears that oil is actually cheaper today than it was in the 1960s. In 1925 dollars, which were worth 1/20.67th of an ounce, it would cost $1.48."
" From this you might conclude that a government that wishes to engage in an “easy money” monetary policy, of the sort that leads to a decline in currency value, would take many steps to suppress the negative effects of their policy, in commodity prices and interest rates. Then, they would enjoy much of the apparent benefit (possibly a more ebullient economy) without the apparent disadvantages. In Nixon’s day, this was done with price controls. Things are a little more subtle today, although you could call the Fed’s action in the U.S. Treasury market to be akin to price controls."
Oil Continues to Rise Because the Dollar Continues to Fall - Forbes
So you see Obama's easy money policy ( quantitative easing) is the real reason for your pain at the pump and if not for our new found oil reserves the price would be much higher than it is now.
"The primary reason that crude oil today – Brent is at $123 per barrel – is higher than its prior average around $20 in the 1990s, or the $3.00 of the 1960s, is that the dollar has lost value over that time. It doesn’t have much to do with crude oil itself. Today, an ounce of gold would buy about 14 barrels of oil. In the 1960s, it would buy about twelve barrels.
In 1960 dollars, which were worth 1/35th of an ounce of gold as per the Bretton Woods gold standard system, today’s oil would cost $2.51. It appears that oil is actually cheaper today than it was in the 1960s. In 1925 dollars, which were worth 1/20.67th of an ounce, it would cost $1.48."
" From this you might conclude that a government that wishes to engage in an “easy money” monetary policy, of the sort that leads to a decline in currency value, would take many steps to suppress the negative effects of their policy, in commodity prices and interest rates. Then, they would enjoy much of the apparent benefit (possibly a more ebullient economy) without the apparent disadvantages. In Nixon’s day, this was done with price controls. Things are a little more subtle today, although you could call the Fed’s action in the U.S. Treasury market to be akin to price controls."
Oil Continues to Rise Because the Dollar Continues to Fall - Forbes
So you see Obama's easy money policy ( quantitative easing) is the real reason for your pain at the pump and if not for our new found oil reserves the price would be much higher than it is now.