Why can't Americans figure out rising gas prices are based on the depreciation of the US dollar?

Question

It seems as though everyone else in the world knows what is going on, why don't we? This is pathetic

Answer 1

No, that's only a little piece of that puzzle.

The Euro has been above the dollar for quite a while now, and yet their prices have soared to 10$ per liter....yes, I said liter. We really shouldn't even be complaining compared to the prices they are currently paying.

Natural disasters that damage/ruin drilling rigs, pipe lines, and refineries, send the prices up. Wars, send prices up. Peak production has sent the prices up.

Supply and demand is the BIGGEST reason prices have gone up.

Now since more and more people are starting to use alternative energy sources, prices will keep going up since oil will start selling less and less because of it.

Commodities trading sends prices up.

When a U.S. war ship shot a warning shot over a Iranian boat taunting them, somehow that pushed up prices because of "concerns."

If a bolt breaks off an oil refinery, somehow that becomes justification to raise prices. Next thing they will tell us is that the vending machine broke at a refinery......and prices will go up.

Answer 2

Well, both conditions are the case.

Oil prices - in absolute terms are skyrocketing.

Our currency is also tanking.

One could suggest that A begets B, but that really doesn't answer the question how do we get OUT of this problem.

In regard to oil, certainly it has taken a few years for economists - particularly  those that feel that there are "no real constraints" on growth by way of resources. This only is true when you outrun resource constraints technologically, which we haven't been able to do, particularly with the monstrous inefficiencies in our use of the stuff. So we now run up against Peak oil and all that implies.

http://en.wikipedia.org/wiki/Energy_use_...

In regard to our fiscal situation, quite frankly an extensive analysis is not really required, Our executive and the congress enjoy a thoroughly alcoholic relationship to our money.

Robin Williams makes a joke about the fact that we know all understand what it means to be a dry drunk, but obviously this metaphor has relevance to both situations, since our use of money and oil are clearly out of hand.

We however, don't need to have the economic catastrophe of previous decades, what is required however, is some austerity on the part of our politicians and an executive with something more than an occasional relationship with what actions are truly good for the nation.

What is VERY IMPORTANT to realize is what sort of political thinking we are dealing with.

http://en.wikipedia.org/wiki/Societal_co...

Answer 3

If that was the cause then the world wouldn't have rising gas prices.  But truth be told it's rising everywhere.  UK it's about 10 bucks a gallon equilivant.  No, it's because the demand is higher than ever.