cRavias's blog

A lot of people bitch these days about high price of gasoline in United States. In this post, I will show that in fact:

1. Gasoline is super cheap in US

2. "Peak Oil" in US happened because of "Peak Greed".

3. US consumer has lost his priorities.

4. It's going to get worse.

1. Gas is still very cheap in US. In fact, it has gotten cheaper than ever! This spring (2008), we pay about 10 cents a gallon of unleaded, how can you call this expensive? Gasoline was sold for 30 cents a gallon in 1920, and it fell threefold during last 90 years.

Dollar is 73.52 today. This should have allowed highly connected people to exit the dollar, and if so, then there is no reason now not to continue the devaluation as promised by Paulson.

Get ready for the dollar to slide down to 70, while oil should rise to $129 in the near term. If this will propel the Gold to recapture 1000 remains uncertain as this year gold is expected to follow it's seasonal pattern, taking off for good only in autumn.

'I reiterated in very strong terms our commitment to a strong dollar,' Paulson told reporters after his meetings with counterparts from the world's seven richest nations.

There. Paulson is in the position of a figure to direct the crowds to their demise. He says the dollar will be supported. This means it will go down in orderly fashion if Paulson is right, or crash if he is wrong.

The central bank and it's counterfeit money scam is typically reigned in to an existence following the outcry for "price stability" and "neutral money".

The problem at hand is usually horrific. Prices are falling and money aren't neutral. Families typically get by on only one income and even that allows for luxuries such as an automobile, for example. What's wife to do? Although both producers and consumers seem to be just fine with this situation, the role of the government diminishes together with the need for the government.

Today's page on the Mish site bears the scary header: "The Fed Is Terrified".

Mish proceeds to explain rules, which he knows very well, to arrive at the conclusion that FED needs more treasuries, or at least "more than government will need to spend". This, by the way, is exactly what I said they will do in my comment to "Fed Balance Sheet" yesterday.
http://fakeben.com/node/179

Poor Mish.
The way I see it, there are only two possibilities:

Having been lending Gold to bullion banks for a good part of the century now, wouldn't the G. have a vested interest in that gold returning to the treasury, if POG reaches a level of public mistrust and a demand for independent audit of treasury's gold could surface?

But how can this be done? Bullion banks are on the verge of declaring huge losses, as there is no investment they could have possibly taken to beat the POG increase plus the however minuscule gold interest.
What's Bernanke to do?