[DeTomaso] Kinda' NPC: Why does oil cost so much?
MikeLDrew at aol.com
MikeLDrew at aol.com
Fri Jun 1 12:14:16 EDT 2012
In a message dated 6/1/12 1 14 26, charlesmccall at gmail.com writes:
> If price at the pump in the US was only in direct relation to the cost
> of production, profits would remain stable. They don't, which means
> that this isn't the only reason for higher gas prices...
>
Gas is NOT getting more expensive, really. Instead, the value of the
dollar is plunging over time, and world oil prices are set in US dollars. When
US government policies result in the dollar being worth half what it was X
number of years ago, if the 'cost' of oil doesn't change, then the result is
a doubling of the amount of dollars it takes to get that oil at the same
'cost'.
As the Euro crumbles, and if political changes result in fiscal
responsiblity in the US for a change, the dollar could well strengthen and that would
have a potential side effect of lowering the amount of dollars it takes to
get a fixed amount of oil.
But don't hold your breath....
Mike (too bad we're not still on the gold standard...)
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