Jim
2008-06-13 10:06:25
We’re all missing one big factor in the reason for the gasoline price rise – the devaluation of the dollar. I live in China (English teacher here), and the price of gas has stayed steady here for a full year here – 4.97 yuan per liter. This is for 2 reasons: 1. the Chinese are in the oil buying market in a different way; 2. The Chinese yuan is steady with the world’s currencies, whereas the dollar is dropping. I think the biggest reason for the drop in dollar value is the massive federal debt is coming home to roost. The government is borrowing at a rate of $1 trillion per year now, and lenders are drying up. So we now are starting to just print money. Watch for general inflation to come soon!
