"JoeSpareBedroom" wrote in message
news
"Canuck57" wrote in message
news:EzEZi.200735$1y4.155047@pd7urf2no...

"JoeSpareBedroom" wrote in message
...
"Tim" wrote in message
ps.com...
On Nov 10, 9:49 pm, " JimH" ask wrote:
"HK" wrote in message

. ..

JimH wrote:
"HK" wrote in message
m...
...gasoline was $1.46 a gallon.

And the highest gasoline prices were under the leadership of
Carter.

And your point is?

Just another data point with which to bury Republicans next year.

Explain how the "Republicans" caused the increase in gasoline prices.

Why would gasoline prices be different today if a Democrat were in
office?

Well I'm not worried about it. Pres. Hillary Obama will get it right
back down to a "buck forty-nine" in just six months, and will have
exec. reps on a rope just like a stringer fll of blue gills.

Nobody will get the price down until we eliminate oil speculation by
investors who have absolutely no connection with the oil business.

Most of the increases in gasoline prices for the last year are due to the
devaluation of the greenback, not in any real way has the value of a
barrel of oil changed.

It is opposite thinking from what politicians preach. A paper currency
is just like stock. It goes up when people want it, and down when people
don't want it. Just like commodities, currency fluxuates in value.

If the US fed raised interest rates and tightened up the money supply the
dollar would have more value. Does not congress work with the Fed on
such maters?

Combine this with sub-prime mortgages and asset backed paper liquidity
problems....

It is more accurate to think of the barrel of oil value being constant
and the currency has lost value. If you had 100% of your investments in
a stable currency last year, they would have gone up 20% against the USD
not including interest.

Blame government monetary policy.


All true, but I stand by my original comment. Oil is one commodity which
should be untouchable by recreational speculators. I'm talking illegal, go
to jail, that sort of thing. You know I'm right.

It is easy then other than how do I carry a $100 barrel of oil around? That
is peg the currency to 1 exact barrel of oil and not the Fed's or
Congressional view of it. But for this to work, if I tender $100 you have
to give me my exact 1 barrel of oil. Something the government and the fed
will not do. That is, back the currency in real constant value.

I knew when Greenspan retired the greed of Fed/banks would in time screw it
up. My bet paid off handsomely. One must look at paper currency as stock
that generally devaluates due to government over spending and big banking
policies.

Oil is just like black gold. Gold too has the same curve against the USD.
So has copper. I don't follow silver but suspect it to has too. Blame the
"oil" companies is a farce, a political excuse to focus people away from the
real issues.

And the spread between currency devaluation and fixed value commodities
suggests interest rates should be in the order of 10-12%. Which of course
they are not. Because the Fed is still creating money to address the
liquidity crunch this creates. A real down stream inflation generator.

It is also why I keep little cash. Cash ultimately depreciates to the
bank/governments favor. I keep a 4-5 month inventory of cash in case I get
laid off but after that it is into something more tangible.

Most often think of cash as a constant value, how wrong these people are.
It is generally best viewed as a depreciable asset. Where as an ounce of
gold or barrel of oil will have the same NPV in 30 years.

The bad part is I don't see the Fed/Congress doing a thing about it. I wish
they would. As I expect this to continue. Want to make more on the turn
around, looking for the bottom.

All because I like fishing and not rich enough to retire to do it full time.