Gas prices rising due to dollar devaluation

[dogtowner]

blame Bernake

I'm sure many of you know this but this explains it in case you don't. (more at link)

The rise in oil prices is not due to the laws of supply and demand regarding oil. It is the result of the continued fall of the dollar. As the Federal Reserve creates more money, the value of the dollar falls. As the value of the dollar falls and oil producers demand more and more for each barrel, the price of crude goes up. Despite what the politicians say about the oil companies, the greatest component of the price of gas is the cost of crude. Crude oil is about 67% of the price per gallon, 7% for refining, 11% for distribution and marketing, and 15% for taxes. Blaming the oil companies may be good for politics, but it is not good economics.

Pouring more crude into the pipeline is not going to appreciably change the price at the pump. Nor will reducing total car travel cause much difference. The emphasis on the supply and demand for crude does not explain the dramatic increase in the price of gas, which is far above the changes in the demand for crude oil. The chart below illustrates the matter.

 

[Cruella]

Exactamundo....has anyone been grocery shopping lately? It seems like every time I shop, everything costs more than the week before.

 

[dogtowner]

Exactamundo....has anyone been grocery shopping lately? It seems like every time I shop, everything costs more than the week before.

yup. I'm surprised this is not more of an issue nationally.
oh wait...
the MSM would have to report on that which they won't likely do.