The high cost of Gas

 

If someone said that Gasoline is currently cheaper than it was in 1995, would you believe them?  Of course not, it was a dollar a gallon back then, and now its 4 dollars (5 in some places).

• The dollar is not an accurate measure of cost.  The dollar is a fiat currency whose value is controlled by the Federal Reserve, which has a monopoly on supply and the ability to create supply without cost.

• To see a more accurate picture of where gas prices are, one must compare them to other commodities.  For example, this chart shows the price of Gasoline since 1995 in mg of gold:

• Presidential and even Congressional policy are common targets of people upset over high gas prices.  Not enough drilling, too much demand, and OPEC are other usual targets.

As this chart clearly shows, aside from the president having the power to choose the Federal Reserve chairperson, those things are all insignificant, as the price has stayed reasonably constant when the value of the dollar is removed from the equation.  Therefore, the real culprit in the high gas prices is the expansion of the money supply.