Oil Is Cheap!

OIL IS CHEAP! How can I say that when the price per gallon for gas is approaching $4.00? Well it’s simple. The price for gas in relation to it’s historical average against GOLD is low. Meaning that the price of gas will continue to go up…probably about $0.75 more per gallon.

This Forbes article breaks down the numbers. The estimated  $0.75 price increase is of course based on the current price of Gold. Here’s the real problem, as the US government continues to create money to be able to spend money we don’t have the price of Gold and Oil will continue to increase. Why? Because the value of the dollar will plummet. It will take more dollars (USDs) to buy the same amount of goods. This is INFLATION.

Let’s put this inflation in context. IF you have $2.50 in pre 65 silver dimes, quarters, dollar coins, or half dollar coins you could still get a tank of gas. That’s right a tank of gas for two bucks.

The problem with oil prices isn’t that we need to drill more it’s that our dollar is worth less. It is taking more dollars to buy the same amount of goods…have you been to the grocery store lately? The same is true there; Prices are going up!

We must change our monetary policy! That’s the real culprit behind the gas prices! If we changed our monetary policy it would put the brakes on government spending immediately. They can’t just create money to spend. They would have to dig the money out of the ground.

So while Republicans and Democrats fight about drilling and being dependent on foreign oil remember that neither party wants to talk about or deal with the real issue…our fiat currency and the ability to just create money at their convenience.

So $4.00 PER GALLON IS CHEAP!!! It’s only going to get worse. So my advice to you is buy Gold and Silver to maintain the purchasing power of your wealth or lose your wealth to inflation.