China, oil and the cost of gas...
Steve Forbes states that too much money drives up the price of hard assets - especially oil. There's also the opinion out there that adding the pipeline from Canada to the Gulf will bring a million new barrels of oil per day to the U.S. market. That's a nice sum.
IF these two statement are correct (they need to be fact checked) then the current high prices of gas are self inflicted by our own Federal government...
Our own U.S. Treasury is printing lots of cheap money and our own Federal government has blocked approval of the pipeline...
Speaking of too much currency... leading economists and business periodicals have noted that China is reducing their dependence on the U.S. dollar. Although their latest report showed an increase of 7% in total dollars held - the percentage of their total reserves is under 55%. That means China is holding 45% of their financial reserves in a currency other than the dollar...
This shouldn't surprise anyone. The U.S. Treasury announced they were intentionally devaluing the dollar by 20%. What investor (China) in their right mind would invest in an asset that is designed to drop in value by 20%?
If we want the price of gas to drop and China to strengthen the U.S. dollar as the defacto global standard - we should tighten the supply of money, approve the pipeline and stop printing so many cheap paper dollars.
www.iangilyeat.com
IF these two statement are correct (they need to be fact checked) then the current high prices of gas are self inflicted by our own Federal government...
Our own U.S. Treasury is printing lots of cheap money and our own Federal government has blocked approval of the pipeline...
Speaking of too much currency... leading economists and business periodicals have noted that China is reducing their dependence on the U.S. dollar. Although their latest report showed an increase of 7% in total dollars held - the percentage of their total reserves is under 55%. That means China is holding 45% of their financial reserves in a currency other than the dollar...
This shouldn't surprise anyone. The U.S. Treasury announced they were intentionally devaluing the dollar by 20%. What investor (China) in their right mind would invest in an asset that is designed to drop in value by 20%?
If we want the price of gas to drop and China to strengthen the U.S. dollar as the defacto global standard - we should tighten the supply of money, approve the pipeline and stop printing so many cheap paper dollars.
www.iangilyeat.com
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