As you can probably imagine, I have a problem with the mainstream media. I'm sitting here with a splitting headache watching more news coverage on how our economy is being negatively effected by oil prices. Alright, we get it. Oil is expensive. The problem I have is that the media refuses to deal with the root cause of why oil is so expensive.
Can anyone explain to me why I have yet to see any of the major news agencies report on the effects of a devalued dollar on the cost of a barrel of oil?
I did a Google search and could not find even one story from a major news outlet on this issue. I did find one in Car and Driver though. Are you kidding me? ABC, CBS and NBC are unwilling or unable to discuss this issue, but Csaba Csere from Car and Driver can?
It was interesting, he discussed in his article in May that the Euro was worth roughly 82 cents in 2000 and a barrel of oil was $30. In May the Euro was worth roughly $1.60 and a barrel of oil was $130. A barrel of oil has more than quadrupled in price since 2000 in dollars. At the same time, the price of a barrel of oil has only doubled in Euros. In other words, if our dollar had just maintained parity with the Euro over the past 8 years, we would be paying about $80 per barrel and gas would be less that $3 at the pump. This would still not be cheap, but a major improvement over $4 gas.
Now why is our dollar so devalued? Simply put, our government spends too much money. If we don't demand our leaders balance their budget and start to pay down our debt, the dollar will continue to plummet in value. We are $9,000,000,000,000 in debt. We are in debt to the tune of $30,0000 for every man, woman and child in this country. Guess what? Its time to discuss this problem folks!
God Bless America,
Erik
erik@exchangeyourgovernment.com
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