Thursday, April 21, 2011

The Price Of Gold, Silver, Gas & The Stock Market

Cards talk and numbers don't lie.  The price of gold, silver and other commodities are surging as a reaction to Socialist President Obama's unwillingness to deal with Trillions in deficit spending and the National Debt, in addition to what is happening in Europe and the Middle East.   People flock to gold and other precious metals when they fear the loss of value of the dollar and other currencies.  The price of Gas is going up for two very simple reasons, the collapse of the dollar's value and supply and demand.   About 70% of the price of a gallon of gasoline relates directly to the price of oil.   The cost of a barrel of oil is very high because oil is sold in dollars.   As the value of the dollar goes down, the cost of a barrel of oil goes up.   It really is pretty simple.  Oil producing nations are not really receiving any more money for a barrel of oil, in real terms, than they were receiving before when the dollar was stronger.   And, demand is up as a result of growth in both China and India.  Demand is outstripping Supply.  This is all just Economics 101, not some huge global scheme as suggested by President Obama trying to deflect criticism of his actions. 

President Obama and the Environmental Wackos in his Administration have prevented oil drilling in the United States, as well as, development of other feasible energy sources.  Hence, the US is not contributing as much to world oil supply as would otherwise be the case.   This is totally in line with Obama's goal to raise the cost of energy, even if it adds to inflation and causes a lower standard of living for all Americans.   This is all intentional and part of Obama's "Green" strategy that requires carbon based fuels to be expensive to make wind, solar and bio fuels more economically feasible.  So, we are likely to see gas at $5 a gallon both because supply is not meeting demand and because the dollar is collapsing thanks to Obama's policies and the Federal Reserve. 

Further, it is nice that the Dow is up above 12,000; but that too is happening for two reasons.   American companies have cut cost dramatically and are very profitable.   But more important, again since the dollar has been destroyed by Obama and the Federal Reserve, in real terms, stock is not worth much more than was the case when the Dow was at 9,000.    

The price of gold, silver, gas and the Stock Market is a reflection of a weak dollar and the fact that the United States has no realistic long term Energy Policy.   These high prices are also a reflection of President Obama's complete failure to properly manage the US economy.   These high prices are actually a vote of No Confidence in Obama.  We must count the days until we can elect a competent Conservative President in 2012 to end the Obama years once and for all to prevent the bankruptcy of our country.   We must take back our country in 2012 and 2014 by sweeping these Socialists out of office.  70% of Americans now believe the country is headed in the wrong direction.  As such, we have to finish the job we began in 2010.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.      

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