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(Forbes)   Gas prices aren't rising, the dollar is falling   (forbes.com) divider line 118
    More: Interesting, gas prices  
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7416 clicks; posted to Main » on 22 Feb 2012 at 7:15 PM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-02-22 04:54:49 PM
Devalued currency due to bad economic policy? Priceless
 
2012-02-22 05:04:09 PM

EnviroDude: Devalued currency due to bad economic policy? Priceless


I'm hoping we pull a Zimbabwe so I can finally pay off these student loans.
 
2012-02-22 05:24:59 PM
Can someone give me the Cliff's notes on all those formulas within that article? I'm having a bit of a "need to have everything 'splained to me" day.
 
2012-02-22 06:03:28 PM
i190.photobucket.com

"Bart, am I wrong? Or is the world... rising?"
 
2012-02-22 06:04:25 PM

EnviroDude: Devalued currency due to bad economic policy? Priceless



This may be the best time ever to buy a house.
 
2012-02-22 06:15:08 PM
So wait, the price of a barrel of oil is going up because the cost of gold in dollars is going up. And the cost of gold is going up because Beck, Hannity, Rush, Savage, etc keep driving the demand for gold up by constant advertising for gold buying and their fear mongering.

So high gas prices are really there fault, not Obama's.

Got it.
 
2012-02-22 07:10:52 PM
The premise that "gas is expensive because the dollar is low" may or may not be right. But to compare it only to gold seems suspicious. If you ask me, gold has seen a meteoric rise and is overvalued. If it is indeed overvalued, this guy's formulas mean nothing.
 
2012-02-22 07:16:53 PM
We should drop the gold standard and just switch to an oil standard.
 
2012-02-22 07:16:58 PM
It's both.
 
2012-02-22 07:18:07 PM
B-b-but Dow 13,000!!!!
 
2012-02-22 07:20:13 PM
Don't worry, I'm sure the US will make a nice tourist destination for us Canadians with our oil sands money, when you're falling over yourselves to be my cabana boy,
 
2012-02-22 07:23:53 PM
I wonder if gold is overvalued:

i.imgur.com
 
2012-02-22 07:25:14 PM

weave: And the cost of gold is going up because Beck, Hannity, Rush, Savage, etc keep driving the demand for gold up by constant advertising for gold buying and their fear mongering.


Three Crooked Squirrels: If you ask me, gold has seen a meteoric rise and is overvalued. If it is indeed overvalued, this guy's formulas mean nothing.


So how do I take advantage of the derp stampede (derpede?) to buy gold? Can I short sell gold?
 
2012-02-22 07:26:16 PM

Three Crooked Squirrels: The premise that "gas is expensive because the dollar is low" may or may not be right. But to compare it only to gold seems suspicious. If you ask me, gold has seen a meteoric rise and is overvalued. If it is indeed overvalued, this guy's formulas mean nothing.


This.

1. The article requires a belief in gold to be meaningful.
2. Comparing the relative values of two unrelated commodities is questionable.
 
2012-02-22 07:27:07 PM

weave: the price of a barrel of oil is going up because the cost of gold in dollars is going up.


Therefore, Obama's repeated bouts of Quantitative Easing constitute an impeachable offense and RON PAUL is automatically President.
 
2012-02-22 07:27:11 PM

weave: So wait, the price of a barrel of oil is going up because the cost of gold in dollars is going up.

Yes

weave: And the cost of gold is going up because Beck, Hannity, Rush, Savage, etc keep driving the demand for gold up by constant advertising for gold buying and their fear mongering.


No. You have a lot to learn about the way the gold market works.
 
2012-02-22 07:31:06 PM

dsmith42: I wonder if gold is overvalued:

[i.imgur.com image 640x366]


Are you kidding??!?! We are about to have 100% inflation rate haven't your been listening to the Ron Paul fans and other right wackos??? - They have been saying this for about 3 decades now... But you listen!!!
 
2012-02-22 07:31:24 PM

dsmith42: I wonder if gold is overvalued:


Crazy talk, now is the time to get in.
 
2012-02-22 07:31:48 PM

Atomic Spunk: weave: So wait, the price of a barrel of oil is going up because the cost of gold in dollars is going up.
Yes

weave: And the cost of gold is going up because Beck, Hannity, Rush, Savage, etc keep driving the demand for gold up by constant advertising for gold buying and their fear mongering.

No. You have a lot to learn about the way the gold market works.


Gold is going up because the mexican cartels are buying it at unprecedented rates due to pressure by the Israeli Mossad. Its pretty obvious if you follow the trends and the money
 
2012-02-22 07:32:26 PM

weave: So high gas prices are really there fault, not Obama's.


Where fault?

/There fault.
//There castle.
///I keed, I keed.
 
2012-02-22 07:34:22 PM
weave

So wait, the price of a barrel of oil is going up because the cost of gold in dollars is going up. And the cost of gold is going up because Beck, Hannity, Rush, Savage, etc keep driving the demand for gold up by constant advertising for gold buying and their fear mongering.

So high gas prices are really there fault, not Obama's.

Got it.


The actual article said nothing of the sort, and they don't have the power, much less intentions, you attribute to them. So sad for your "reality based politics". Meanwhile, it did day:

During the 1970s, the toxic combination of a weak dollar, high tax rates, and onerous regulations introduced a new word into America's economic vocabulary: stagflation. Reaganomics banished this word to the history books. Now, President Obama and Fed Chairman Bernanke are teaming up to give stagflation another try. It is not likely that Americans will like it any more this time around than they did 40 years ago.

Try reading the article you're commenting on before you comment.
 
2012-02-22 07:34:23 PM
The truth! BURN IT!
 
2012-02-22 07:34:34 PM

Gordian Cipher: weave: And the cost of gold is going up because Beck, Hannity, Rush, Savage, etc keep driving the demand for gold up by constant advertising for gold buying and their fear mongering.

Three Crooked Squirrels: If you ask me, gold has seen a meteoric rise and is overvalued. If it is indeed overvalued, this guy's formulas mean nothing.

So how do I take advantage of the derp stampede (derpede?) to buy gold? Can I short sell gold?


yes, you sure can.

However, be warned, the derp is not just being fueled domestically.
The Chinese are scared things are going to collapse are buying truckloads of it (government and the people) so much that the government shut down most of the gold trading.
There are also rumors that India and others plan to get around the sanctions on Iran by trading gold for oil.

Those two alone could hold it up or even drive it a bit higher.

I personally think the current price is silly high , but I'm not brave enough to short it.
 
2012-02-22 07:34:43 PM
And yet USD M3 is at the exact same level as Dec 2008.

Meaning the Fed hasn't printed any new USD in over 3 years.


(Not that they haven't tried, but the banks have sucked out every USD that the Fed has tried to inject in the economy.)
 
2012-02-22 07:35:18 PM
The gold standard position puzzles me.

ALL of the gold ever mined, from pre-history to now, is roughly 140,000 tonnes. The current price (as of the writing of this post) for gold is $1773 per troy ounce. That means, all of the gold EVER mined, since pre-history until now, is valued at approximately 8.75570282 × 1012, or $8.75 trillion dollars.

By comparison, the US GDP for 2011 was 15.495389 trillion dollars (according to the IMF).

That means, all of the gold EVER mined wouldn't even be enough to cover HALF of the gross domestic product of the US for ONE year. Never mind the fact that the US gold reserve is nowhere near that amount.

How would it be possible to back up the dollar with gold, like people like this guy and Ron Paul suggest? It's impossible. The only ways possible would either be to create an artificial ratio of exchange between the value of gold and the value of a dollar, which essentially distorts the market for gold completely, or essentially devalue people's net worth to be allocated to available gold, which would essentially require the government to literally ROB people of their possessions in order to fit some harebrained gold standard scheme.
 
2012-02-22 07:36:06 PM
So it was a pretty decent read till I got to the second page and the author went all Derpy.
 
2012-02-22 07:36:38 PM
I have a question for all you "Money is not REAL! Gold has real value" (which is funny because gold is sold on markets just like cash and really has almost no value to do anything with except make semi-conductors) People, what is stopping you from just putting all your money into gold and out of cash?

You attack the US government for not forcing everyone to do this, but why don't you just STFU and do it yourself? Besides if you do it and the dollar collapses, like people like you have been predicting for about a century or more now, then if you have the gold and the dollar falls for everyone else you'll be even MORE rich than everyone.

So if you believe it so much why don't you put your money where you mouth is instead of whining about it to everyone else?
 
2012-02-22 07:36:40 PM

berniex: And yet USD M3 is at the exact same level as Dec 2008.

Meaning the Fed hasn't printed any new USD in over 3 years.


(Not that they haven't tried, but the banks have sucked out every USD that the Fed has tried to inject in the economy.)


.
.
Does it hurt when you pull shiat like that our of your arse?
 
2012-02-22 07:37:02 PM
Either the sky is falling or the earth is rising. Whichever, it doesn't change anything.
 
2012-02-22 07:39:41 PM
Ohi next recession. Happened last time gas was $4+ across the country. If you think all the drivers in CA can afford $5 gas you got another thing comin.
 
2012-02-22 07:40:02 PM
but stockpile gold isn't on the doomsday "to do" list.
 
2012-02-22 07:41:07 PM

RexTalionis: The gold standard position puzzles me.

ALL of the gold ever mined, from pre-history to now, is roughly 140,000 tonnes. The current price (as of the writing of this post) for gold is $1773 per troy ounce. That means, all of the gold EVER mined, since pre-history until now, is valued at approximately 8.75570282 × 1012, or $8.75 trillion dollars.

By comparison, the US GDP for 2011 was 15.495389 trillion dollars (according to the IMF).

That means, all of the gold EVER mined wouldn't even be enough to cover HALF of the gross domestic product of the US for ONE year. Never mind the fact that the US gold reserve is nowhere near that amount.

How would it be possible to back up the dollar with gold, like people like this guy and Ron Paul suggest? It's impossible. The only ways possible would either be to create an artificial ratio of exchange between the value of gold and the value of a dollar, which essentially distorts the market for gold completely, or essentially devalue people's net worth to be allocated to available gold, which would essentially require the government to literally ROB people of their possessions in order to fit some harebrained gold standard scheme.


I had a long talk with one once. They think economics is a zero sum game (or at least it should be). So they think all the rise in GDP is only from inflation and "counter fitting" which they define as normal lending that has been around for the last 2000 years.

They don't understand that goods increase wealth not just cash. That is a foreign concept to them. What they think is there should be X money in the system and it should NEVER go above X.

Yes, it's crazy, but that's what the believe. They want to bring back money to wear it was thousands of years ago when economies were completely stagnant.
 
2012-02-22 07:41:29 PM
Dudes, my mortgage is going to be sweet when I'm making $117B per day.
 
2012-02-22 07:41:50 PM

berniex: And yet USD M3 is at the exact same level as Dec 2008.

Meaning the Fed hasn't printed any new USD in over 3 years.


(Not that they haven't tried, but the banks have sucked out every USD that the Fed has tried to inject in the economy.)


You would too, if you could borrow at 0% and then lend it back at 3%. That right there smells like the biggest mistake in the recovery.
 
2012-02-22 07:42:20 PM
FTA: "At this point, we can be certain that, unless gold prices come down, gasoline prices are going to go up"

/Needs reiterated
 
2012-02-22 07:42:35 PM
Oy, I got through four paragraphs.

Federal Reserve Chairman Ben Bernanke uses a "core CPI index" that excludes food and energy to guide monetary policy. From Big Ben's point of view, rising gasoline prices are not a problem. For the rest of us, they are becoming a big problem.

Douchebag knows exactly why CPI excludes food and inflation - it's to remove outliers to build a steady, long term inflation index that can predict future inflation. Energy and food will eventually affect the price of everything as suppliers adjust those inputs to the price of their products so it's not valuable for making future predictions. This is nothing new, but of course, Ben HUSSEIN Bernanke.

This is why gold represents the best available standard in terms of which to define the value of a monetary unit. Forty-one years ago, when the value of the dollar was defined in terms of gold at $35/oz, WTI was selling for $3.56/bbl.

WTI went to $145 in July 2008 and fell to $34 by December 2008. Gold rose from roughly $1000 to $1200 over that period. So WHAT IS YOUR FARKING POIINT!
 
2012-02-22 07:43:07 PM
subby is a retard, the dollar has only gone up this month. oil is high because Iran.
 
2012-02-22 07:44:06 PM

Peki: You would too, if you could borrow at 0% and then lend it back at 3%. That right there smells like the biggest mistake in the recovery.


Yeah. I don't think the almost 0% was the big mistake. But the mistake was to not of forced them to only use that money to loan to businesses etc.

Most of those guys will be gone in a 2nd Obama Admin.
 
2012-02-22 07:45:13 PM

Corvus: RexTalionis: The gold standard position puzzles me.

ALL of the gold ever mined, from pre-history to now, is roughly 140,000 tonnes. The current price (as of the writing of this post) for gold is $1773 per troy ounce. That means, all of the gold EVER mined, since pre-history until now, is valued at approximately 8.75570282 × 1012, or $8.75 trillion dollars.

By comparison, the US GDP for 2011 was 15.495389 trillion dollars (according to the IMF).

That means, all of the gold EVER mined wouldn't even be enough to cover HALF of the gross domestic product of the US for ONE year. Never mind the fact that the US gold reserve is nowhere near that amount.

How would it be possible to back up the dollar with gold, like people like this guy and Ron Paul suggest? It's impossible. The only ways possible would either be to create an artificial ratio of exchange between the value of gold and the value of a dollar, which essentially distorts the market for gold completely, or essentially devalue people's net worth to be allocated to available gold, which would essentially require the government to literally ROB people of their possessions in order to fit some harebrained gold standard scheme.

I had a long talk with one once. They think economics is a zero sum game (or at least it should be). So they think all the rise in GDP is only from inflation and "counter fitting" which they define as normal lending that has been around for the last 2000 years.

They don't understand that goods increase wealth not just cash. That is a foreign concept to them. What they think is there should be X money in the system and it should NEVER go above X.

Yes, it's crazy, but that's what the believe. They want to bring back money to wear it was thousands of years ago when economies were completely stagnant.


.
.
Please allow me to introduce the two of you to a foreign to you word, "standard". You're welcome.
 
2012-02-22 07:45:51 PM
A devalued dollar is good for the US, especially for tourism and exports. That's why we're exporting more oil than importing them at the moment.
 
2012-02-22 07:45:59 PM
anyway, who farking cares how much gas costs at the pump? individual stations determine that. if you dont like it, go to another gas station, or dont drive an SUV.

my father drives a ford pick up for no reason other than he likes big cars. cost him over 200 bucks to fill it up more than once a week. what a farking moron. he has more money than sense i guess. he is a baby-boomer, so there is that.
 
2012-02-22 07:46:34 PM

Hector_Lemans: FTA: "At this point, we can be certain that, unless gold prices come down, gasoline prices are going to go up"

/Needs reiterated


Well, since gold has little intrinsic value and it is worth what people believe it to be worth, I suggest we switch back to the tulip standard. It worked for the Dutch (for a while).
 
2012-02-22 07:46:44 PM

david_gaithersburg: Corvus: RexTalionis: The gold standard position puzzles me.

ALL of the gold ever mined, from pre-history to now, is roughly 140,000 tonnes. The current price (as of the writing of this post) for gold is $1773 per troy ounce. That means, all of the gold EVER mined, since pre-history until now, is valued at approximately 8.75570282 × 1012, or $8.75 trillion dollars.

By comparison, the US GDP for 2011 was 15.495389 trillion dollars (according to the IMF).

That means, all of the gold EVER mined wouldn't even be enough to cover HALF of the gross domestic product of the US for ONE year. Never mind the fact that the US gold reserve is nowhere near that amount.

How would it be possible to back up the dollar with gold, like people like this guy and Ron Paul suggest? It's impossible. The only ways possible would either be to create an artificial ratio of exchange between the value of gold and the value of a dollar, which essentially distorts the market for gold completely, or essentially devalue people's net worth to be allocated to available gold, which would essentially require the government to literally ROB people of their possessions in order to fit some harebrained gold standard scheme.

I had a long talk with one once. They think economics is a zero sum game (or at least it should be). So they think all the rise in GDP is only from inflation and "counter fitting" which they define as normal lending that has been around for the last 2000 years.

They don't understand that goods increase wealth not just cash. That is a foreign concept to them. What they think is there should be X money in the system and it should NEVER go above X.

Yes, it's crazy, but that's what the believe. They want to bring back money to wear it was thousands of years ago when economies were completely stagnant.

.
.
Please allow me to introduce the two of you to a foreign to you word, "standard". You're welcome.


Actually, I already addressed the issue in my original post. And no, it doesn't work, for obvious reasons.
 
2012-02-22 07:47:24 PM

Sticky Hands:

I personally think the current price is silly high , but I'm not brave enough to short it.


The old saying is the market can stay irrational longer than you can stay solvent.
 
2012-02-22 07:47:32 PM

some_beer_drinker: subby is a retard, the dollar has only gone up this month. oil is high because Iran.


*ding* but that doesn't fit in their "Obama is Satan!" line so it is rejected.
 
2012-02-22 07:47:36 PM

dericwater: A devalued dollar is good for the US, especially for tourism and exports. That's why we're exporting more oil than importing them at the moment.


.
.
I can't wait until we can be on par with the Slum Dog Millionaires of India! Yippee!
 
2012-02-22 07:47:44 PM
As they say in Texas, Don't have an oil well? Then get one!
 
2012-02-22 07:47:50 PM
Gold and oil are good foils to the dollar. When gold goes up, it is not really gold going up, its the dollar going down.

That's why a chart like this really puts in perspective how used and abused and devalued the dollar really is:

2.bp.blogspot.com

Remember: you are still getting paid the same, give or take 3%. But over that same time those dollars that you are receiving have been devalued way more than 3%. Another way to look at it is a backdoor wage cut: being paid the same amount, but in devalued dollars.

And just wait until OPEC countries stop accepting dollars for oil. This is what the sabre rattling over Iran is about. Iraq tried it, then we invaded them. Libya tried it, and we toppled that government. Now Iran is trying it, and lo and behold, we are getting ready to invade them.

Nixon taking us off of the gold standard in order to pay for the Vietnam War probably wasn't the most brilliant idea.
 
2012-02-22 07:48:50 PM

david_gaithersburg: Please allow me to introduce the two of you to a foreign to you word, "standard". You're welcome.


So the gold standard is not actually backed by actual gold?
 
2012-02-22 07:48:58 PM

babtras: Don't worry, I'm sure the US will make a nice tourist destination for us Canadians with our oil sands money, when you're falling over yourselves to be my cabana boy,


More like you're about to become the 51st state.

By force if necessary.

WELCOME TO 'MURICA, HERE'S YER BIBLE, NO ABORTIONS!
 
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