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Calculating the High Cost of Living

April 9, 2011

“Oil surged above $112 per barrel on Friday, following a drop in the dollar, and continued jitters about shipments from the world’s major oil suppliers”.

What people fail to understand is that the more money we print to cover our overspending, the less our money is worth. Oil does not have to go “UP” to have it cost us more dollars, if our dollars become worth less in the world market.

For example, when we say GOLD has gone “up,” it may not be true at all, if it did not go up for every currency in the world. There have been times when it will cost less in some currencies than another, and costing more in some currencies than others. This is dependent on the overall “health” of each nation’s currency.

As we go deeper and deeper into debt (thanks to you know who), and we print more and more money, our money becomes worthless, and has less buying power. It’s call inflation, and it refers to the money, not the products, and services you try to buy with it.

We can say we (America) are not on any gold standard, but gold is still a world benchmark to compare, and rate world currency against it (like it or not).

Gold does not go up & down. An ounce of gold is always an ounce of gold; it has intrinsic value; paper money does not. A barrel of oil, and a bushel of wheat has intrinsic value; paper money does not. (There is however the manipulation of supply and demand – monopoly and price-fixing of oil and wheat that will also effect the rate of exchange).

Although gasoline prices effect each of us on the amount we use and pay, it is diesel prices that affect everyone and the overall cost of living.

Nothing, absolutely NOTHING, is unaffected by diesel. From the farmer’s tractors, to the ships at sea, the trains, and the trucks that are needed to deliver EVERYTHING! Raise the price of diesel, and you raise the cost of living!

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