Gas Prices

Before everybody starts believing all of the non-sense out there about why gas prices are so high, I thought I should put a post that even the most basic person can understand...

You'll see articles out there like these...

Refinery Closures...
http://finance.yahoo.com/news/angry-about-high-gas-prices--blame-shuttered-oil-refineries.html

Wall Street and Speculators
http://thehill.com/blogs/e2-wire/e2-wire/212137-pelosi-blames-wall-street-for-gas-price-spike

Middle East
http://www.wpxi.com/news/news/local/gas-prices-are-about-go-even-higher/nKPsJ/

Maybe all have some value if you want to look at things from any one of those angles...but really, that doesn't explain what I'm about to show you...

Here is the value of the Dollar.  Actually the Dollar vs. a basket of other currencies, but 58% the Euro...

In 2012, it's been down.  Around a 45 degree angle down.

So that means that the dollar is losing it's value, or it's being weaken, or inflated, or debased.  Whatever you want to call it vs other currencies.  As more money is created and the dollar gets weaker, it causes inflation.  Generally in everything.  Keep in mind, it was November 30th that the G6 coordinated an open swap line to prevent a continuation of that ugly chart I drew back in November.  Since then, near unlimited liquidity (money printing) around the world...

Now Gasoline...for March delivery.

Almost the complete opposite of the dollar...Dollar down due to inflation, Gas up.

So let's make sure this holds true for other things...

Yup...

But it's a world-wide liquidity injection...so we should see it in foreign items too...

US $ and Japanese Yen down....all others up.

Stock markets across the world.  All up, just like the Dow and S&P.  Some even more so, some less so, but all up.

Ok...Any Questions?

So when you read about Gas prices going up and you hear this or that...they're just stories, made up by someone who probably doesn't know anything trying to sell a story.  The real reason is the Global Bailout by the US dollar and the Japanese Yen it looks like.

Does Iran have a part to play in the future gas prices going up, absolutely.  Tensions about a war in Iran will do that to the global oil price, which as you see has gone up dramatically in the past week or so.  That will get us on our way to $5 gas this summer.  Fun times.

So don't look any where else but the Central Banks who nicely kept us from another recession in November and instead gave us high inflation, which as you can see, includes the price of gas, with everything else.