15 April 2008
The price of oil hasn't changed since 2001...
... if you buy the oil with gold. The chart above is from the American Geological Institute; the blue line is the price of oil in dollars, the red line is the price in euros. The flat purple line shows the number of barrels per ounce of gold. The reason Americans are paying more for oil/heating oil/gasoline/plastics and other oil-based products is not because producing countries have raised their prices, but because Fed policy and federal government policies have debased our currency.
As the source article's title indicates, "maybe Ron Paul was right..."
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Every time I go to the gas station, I know that oil is what it is. Why does it take more dollars to buy the same amount? Obviously because the dollar isn't worth as much as it used to.
On August 15, 1971 Richard Nixon was so appalled at "inflation" that he imposed price controls, and the conservative in him must have spit up blood at doing so. What was the inflation rate? A whopping 4%, something we take as normal or better than normal now.
Until the Vietnam war took off, the inflation rate was about 1-2%. The dollar was pegged to gold at $35.00 an ounce. The U.S. was king, and life was good.
ON THAT VERY SAME DAY - August 15, 1971 - Nixon took us "off the gold standard", and life has been inflation, inflation, inflation ever since - which means that dollars continue to be worth (able to buy) less and less and less.
And less. . .
If you want a real laugh, look up "hyperinflation" and "Germany" and "1923".