Coming Soon to Your Neighborhood
Everyone has an opinion on how to lower gas prices. People have resorted to:
- Prayer
- Promotion of Fuel efficient Vehicles
- Rebate Gas Cards Upon Car Purchases
- Price Caps
- Use of Gas Price Comparision Tools
- Consumption of Local Produce
But the Historical Gasoline Price charts don’t lie.
Historical US Gas Price Chart from 1972 to 2008
Considering that US gasoline prices now have reverted to historical price levels circa 1980, I think Gasoline prices will rise as long as the US dollar loses value in comparison to the rest of the world’s major currencies.
Historical US Dollar Index Chart from 1972 to 2008
What’s Going on With the Relationship Between the US Dollar and Gasoline Prices?
When the US dollar rises in value, gasoline becomes cheaper.
When the US dollar loses value, gasoline becomes more expensive.
Gas Price Solution: Increase the Value of the US Dollar
One of the main keys to increasing the value of the US greenback is to fix the trade deficit issue. The Current US Trade deficit is $247 billion dollars. This means that we import a surplus of $247 billion worth of goods than we export.
And when these foreign economies continue to receive an abundance of US dollars, naturally they become less valuable to them (basic supply and demand theory).
Our Solution: Promote US Business Once Again!
Buying products “Made in the USA” is a great way to support the revival of the US Dollar. However, The USA has become lazy/greedy, and outsourcing has destroyed the value of our greenbacks (Think about Nike outsourcing goods from Eastern Asia to Sell in US Stores). The USA must produce products that foreigners want to buy. That is the only safe way to increase the value of our dollars. Otherwise, Foreign economies will drop the US Dollar like it’s hot.
What’s the Worst Case Scenario?
You tell me. Discuss.
Great post, and I agree, the numbers don’t lie. The decreased value of the dollar is wreaking havoc on daily life for many Americans and this will continue if national policy remains unchanged.
The underlying problem, in my opinion, is the Federal Reserve banking system and the inherent emptiness of a fiat currency.
The solution? At the top, leaders like Ron Paul instead of politicians like McCain, Bush, Hillary, Obama. At the bottom, political involvement by concerned citizens at the local, state and national levels. In daily life? Buying local food, American-made goods,a nd a return to self-sufficient living.
We are consumers instead of producers, and as long as that is true, our country is headed for disaster.
Thanks for the link love, by the way.
Hi Maria,
You made a very good point about the hyper-consumption problem in America. Ever since the Industrial Revolution, the USA has slowly made a transition from mass production to mass consumption. Buying American Goods and growing foods locally is a great start.
I only wonder what Bernanke and the next president will do to curb this issue? If the past is any indicator, then absolutely nothing.
Thanks for stopping by!
The only source of energy that comes close to providing even part of the energy the rising third world will take from Americans is desert/solar electric. In this recession and in the inevitable depression to follow, an attitude adjustment in the American psyche will take place. We will no longer feel entitlement to the sexiest, fastest, biggest and the best all the time, worship the toughest, bloodiest and most murderous, and fall to the feet of the richest and most powerful in idiotic idolation.
Those of us who survive will worship at the feet of practicality, frugality and environmental consciousness. We will enthrone honesty, virtuousness, and modesty. We will show greater love for our fellow humans than ever before. Knowledge will be the new God, overseeing all else.
The Chinese now produce cars that produce less pollution than ours do, and if they are sold here, Detroit will be a third world city. Kodak, in Rochester is a harbinger of what is to come for all American industry. We can’t even manufacture a digital camera, they all come from China! andthats the truth. Wake up America, your corporate society has screwed you, and since acorporation is an imaginary entity, there is no one to blame!
@ Uncle B
I second your theory on the situation of Detroit, Ford Motors, etc. The USA must wake up! We have relied on outsourcing and foreign resource for too long. Well put, brother.
The problem at our hands: How will US Corporations pay Americans reasonable wages to produce these products without destroying their margins and laying off more employees?