Dr. Mercola September 09 2008 26,143 views
The price of oil is up, and everyone is worried about the potential economic consequences. But what if the price of oil wasn’t really up? What if it were just an illusion?The American Geological Institute (AGI) recently released a report looking at the price of crude oil in relation to the U.S. dollar and the price per ounce of gold. They found that the price of oil has been going up in relation to currency only. This means that the value of oil has not been increasing in real terms; instead, currency has just been decreasing in value.
In other words, if U.S. currency were still based on gold, as it was until 1971, then the price of oil would be stable.
So if you are an American, the price of gas hasn’t really gone up, it is just that the value of the dollar has significantly plummeted.
I find it funny that I remember a certain presidential candidate spoke about putting actual money behind our money again...A Mr. Paul I believe =). He said until the Fed is gone the dolar will be lower and lower, because they print what they need not what they have gold to back anymore. Paper money in and of itself is a bad idea. He spoke to this too and unfortunately his own party fried him..........figures. Make the dollar worthless then you need more of them to buy the things you need. In truth, things aren't going up, the dollar is being devalued. Correct?
Good analysis, Magnolia...but you left out one small detail people seem to keep forgetting. That is, the oil producers do NOT set the price of oil. Oil is traded as a commodity on the open market and the oil producers have to sell for whatever market price is currently being traded. Imagine if you sold a product that today is worth one price, but tomorrow is worth a lower price...and there's nothing you can do about it. You'd be like a farmer bringing a great crop to market, only to find that so is everyone else, so the price has dropped.
Basically, my point here is that while oil is FAR overpriced considering the amount still in the ground (and the amount the U.S. could be drilling for themselves if someone would get their head out), the fact is that the price is not driven by greedy oil barons, but by supply and demand. Countries like China and India are on the rise and oil demand is going to remain HEAVY for some time, thus propping up both the market and the price.
Finally, people like to point the finger at the evil oil companies (I won't say they're good, but I don't believe they are any more evil than any other huge corporation), however the FACT is that government makes more money per gallon of gas than anyone else involved in the process.
Let me say that again...
Our government (and most governments around the world that heavily tax oil at the retail level) collect more per gallon of gas THAN ANYONE ELSE INVOLVED IN THE PROCESS.
Said another way, the "evil" oil companies spend billions of dollars of their own money to seek out oil supplies, build infrastructure, and bring the product to market, but governments - who assume ZERO risk in the endeavor - make the lion's share of profits. And THEY are often the ones doing the finger pointing...but do they ever cut their draconian energy taxes, even when people are having trouble heating their homes? Hmmmm...
Wow - GREAT analogy! Something I can even use to explain the current dire straits to my kids. Two Monopoly set - love it.
Magnolia, gold should be our money, not paper. Did you know that there is fraud and deception everywhere there is money to be made. Every stock , currency and commodity is manipulated by "trusted" and "authorized" sources that feed false information to the brokers and that causes prices to go up and down. The Canadian Dollar is a case in point. In 1995 when Canada went into the black for the first time in 30 years due to the huge money made from websites, and hence huge taxes, and the debt was being paid down, the Dollar should have risen. Instead it went from 72 cents all the way to 59 cents over the next 10 years. Then I heard that the powers above the monopolies did not want any country to be so powerful as the United States, then the Canadian Dollar magically rose. There is no free market, just as there is no Democracy. All we have is the appearance of a free market or a Democracy. Have a wonderful day but beware the markets.
Of interest to this discussion:
“On June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest.
“On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve.
“President Kennedy was assassinated just five months later. No more silver certificates were issued. Executive Order No.11,110 was never repealed by any U.S. president and is still valid. No president since has utilized it.”
video.google.com/videoplay
ISLANDER -- you could not be more wrong!!!
You are perpetuating what we call a "Patriot Myth". People like to think that Kennedy was some great hero to the constitution. The FACT is that he was a globalist and cared no more for the U.S. constitution than succeeding presidents.
But don't just take my word for it. This has been thoroughly debunked. It has now gained the status of an urban legend. I myself have read the Executive Order you speak of and it does nothing of the sort that it is rumored to have done. Simply reading it makes this clear. Did you actually read the order?
Here is an in-depth analysis of this issue by G. Edward Griffin - the same individual who wrote the must-read book "The Creature from Jekyll Island".
www.freedomforceinternational.org/freedomcontent.cfm
**please note: this myth is routinely stated as fact by the Christian Common-Law Institute, but do NOT believe it. Read the clear and irrefutable essay above and stop spreading this ridiculous (and pointless) urban legend!
Mike M, I stand corrected. I did originally look up the executive order in question, and in fact I made an effort to read Griffin's book, but my eyes glazed over after the first 200 pages or so. I thought I was sharing an interesting bit of history... I apologize for misleading readers, but this sort of economic mumbo-jumbo swathed in legalese lends itself to misinterpretation!
Kennedy got into Office based on his fathers clout as a high ranking Mason, however once in office he did turn on a dime and was not going along with what the brotherhood wanted to implement and he was taken out. The only other president who was not a member of a secret society was Abraham Lincoln, also assasinated. Coincidence??? I don't think so.
Islander, nice tidbit of information on JFK. Did you know JFK was murdered for not bombing Cuba and starting the WWIII. His advisors kept advising him to go ahead and give the order to attack Cuba, but he wouldn't do it, he was a good president.