[Peace-discuss] currency devaluation and energy costs

[ewj at pigs.ag]

Someone asked Saturday morning about fuel prices and the War in Iraq.

The War is contributing to the price of fuel in part because the printing of money to finance the American Empire is devaluing the currency.  By one definition (see www.usmint.gov), a dollar is 1 ounce of silver. (there are other definitions).

Adam W. at NationBuilder noted that forty years ago 1 ounce of silver bought around 4 gallons of gas. On 5/21/08, 1 ounce of silver bought around 4 gallons of gas. If we still used the US note, gas would be around 25 cents a gallon. But with the FED note it costs nearly $4.  In 1964, Ronald Reagan talked about how the dollar of 1939 was only worth 45 cents. Today, the dollar of 1913 is worth 3 cents and falling. Soon the dollar will literally be worth a penny.

Monetary policy is for sure not the only factor in energy prices but it is clear that it is a highly influential factor.