Is the price of gas going up OR is the U.S dollar going down?

Question

Some Idiot on youtube created a video saying that gas prices are not going up its just our currency thats going down.

I know something is wrong here, I just dont know what.

He backs up his claim by saying that:

in 1947 you could buy a gallon of gas for about quarter (25 cents)

He claims this quarter consists of a 1/4 ounce silver

Which in todays money comes out to $4.55

Something is wrong here, Please tell me what?

Answer 1

Both, and they both are a kind of a result of each other.  Oil causes prices on everything to rise, which causes inflation.  When you have the inflation the dollar isn't worth as much in world markets so its more expensive for us to buy oil, and the cycle continues.  We need to drill, stop buying from the Saudis' invest in alternative fuels, and decrease our demand.

Answer 2

Both!!

Answer 3

Both are true. Actually the falling dollar has a direct relation to the rising gas price.

Oil is traded in dollars. A weak dollar means that foreign investors can buy more oil, which helps drive up the price.

Answer 4

both.

Answer 5

Both!

Answer 6

Both, and they're related too. But gas is going up for other reasons, its because of speculation.

And thats wrong about 1947, somebody used the wrong CPI to calculate that value for that year, its a lot less, even though its still more than I thought.

Answer 7

American dollar is dropping AND gas prices are rising.

Answer 8

Gas is going up, but the currency is going down...I'll explain

Gas is going up because...

it is one of the three fossil fuels, oil, coal, and petroleum. Fossil fuels were created over millions of years from compressed fossils and other ancient things created by heat and pressure, which is where the term fossil comes from. They are nonrenewable sources and they are estimated to run out sometime in the next 75 years. They are in such high demand because when burned they create energy to run our cars, light rooms, heat and cool homes, and so on. However, they are in short supply and everyone wants to buy them, therefore making the prices go up. That's why gas is so high because the less there is the more expensive it costs-----gas prices are reaching record highs.

The U.S. dollar is also going down though...

because we have so much of it. For example 50 years ago, a gumball was around 2.5 cents. Money was worth more back then-----because of this they had half cents. A 1947 dollar is about ten 2008 dollars. This is because over time the value of a dollar dropped as we printed and made more money. The more there is, the less each one is worth. Overtime, people lost money making the half cent because it soon cost more than half a cent to make. Since 1947, the currency has slowly continued to drop in fact, they're considering stopping the production of pennies because they now cost more than 1 cent to make-----just like what happened to the half cent.

Overall, it's not just one thing making the other happen... they are both contributing to each other.

Answer 9

Well the gas prices raising a $1.00 means nothing.