Why is the Gas Price Rising? Will this madness ever end?

One reason for this rise of Oil price is Demand-Supply situation. We hit a peak in production in 2005. Since then, the production has been declining at the rate of 3% a year, whereas the demand is rising 3% a year. There has been no major Oil-field discovery in the last 4 decades. Another problem is that the value of USD in international markets is crashing. So, we can’t afford to buy fuel.

The cost of Oil has doubled in terms of Euros in the last 5 years, whereas it has tripled in terms of US$ in the same period. There is no denying of the fact that the purchasing power of common man has declined sharply, all thanks to the Federal Reserve.

For Gas to reach $10 per gallon, Crude would have to be priced at $300 per barrel. It won’t happen unless the value of USD Greenbacks crashes in the International markets and everyone stars dumping dollars and they become worthless.

It is a distinct possibility that the value of dollar would crash soon. The United States has been exporting paper currency in order to import products and services from Asia and Europe. They no longer produce a lot of stuff in the United States any more. It is a service-run economy, and when the dollar crashes, gas will hit 10$ per gallon, and the ensuing hyper-inflation will take down the Stock-markets and all the savings.

Ron Paul is the only guy who can save America from Total Collapse…