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Oil Prices are NOT Going Up

Updated on May 1, 2011

Rather the Value of a Dollar is Going Down

01/04/11

People are under the illusion that oil prices are uncontrollably going up, but this couldn't be further from the truth. What is seemingly causing the high oil prices isn't an oil shortage, it isn't because of greedy corporations, and it isn't because of labour costs. What is causing the illusionary increase in prices is the devaluation of the US dollar due to hyperinflation that has existed the past forty or so years. Here is a simple video, from a source who dubs himself "Jones", that explains the situation:

If we were to compare oil prices to silver/gold ratios, we will discover they have been nearly the exact same the past 40 or so years. This is an indication that the value of oil hasn't gone up, but the value of US currency has gone down. The value of US currency, and all currencies in general, have gone down because governments have been printing greater sums of paper money over the years. Currently, Ben Bernanke is going through a "quantitive easing" process with the US dollar. What does this mean? It's a fancy explanation for printing up mass sums of money, causing hyperinflation. By doing so, this is a "hidden tax", each dollar you have is subsequently less valuable. The prices of goods will certainly increase to match the level of inflation. You'll require more dollars in order to survive, which will put you on a higher tax bracket, provided the tax structure doesn't come under review. The net result is your money will be able to buy less and your taxes shall increase.

You can buy the same amount of oil with an ounce of silver or gold today as was several decades ago. Oil isn't going up, rather the dollar is going down.

-Donovan D. Westhaver

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    • jackclee lm profile image

      Jack Lee 

      3 years ago from Yorktown NY

      Can you explain the sudden drop in price of oil to under $50 while the dollar is hoovering around 118 yen ? As far as I know, no experts predicted this. Very disturbing events.

    • nflagator profile image

      nflagator 

      7 years ago from North Florida

      Well said DonDWest!

    • DonDWest profile imageAUTHOR

      DonDWest 

      7 years ago from Halifax, Nova Scotia, Canada

      In my opinion, if you're from Europe, it's even of greater imperative that you put as much of your currency aside in gold or silver. Reason being is the Euro may become a defunct currency. Of course, this isn't certain, but why take the risk? Put your money in gold and or silver. If the Euro survives the tsunami, you can always trade your gold and silver back for Euros. If your country ditches the Euro and introduces a new currency, you can exchange your gold and silver for that new currency, while comparatively if you kept your Euros, there is no telling what could happen during the currency conversion.

      And what the USA does with it's currency will affect oil prices world wide because oil uses the USD as a reserve currency. Unfortunately, as long as oil still uses USD as a reserve currency, the actions of the Federal Reserve trickle down to the rest of us. What America does with it's money affects oil prices. Inflation in America will increase oil prices for all nations regardless if they pursue anti-inflationary measures in their own currencies because oil is traded under USD.

      If you find your nation has their own financial deck of cards in order, what you can do is lay aside of a small portion of your income towards silver and use that to hedge off oil prices.

    • davidrio profile image

      David 

      7 years ago from Lisbon

      You right Donovan, however don`t you think that at least in the Euro zone the European Central Bank is pursuing anti inflation policies?Goods are already overpriced with some of the countries ( Spain, Portugal, Greece, Italy,for ex.) struggling not to get kicked out of the common currency

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