2012 Elections, Conservative Thought, Federal Leviathan, Fiscal Insanity

Fine With Me, So Long As I Can Still Get A Gallon Of Gas For 20¢

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Hell
This isn't hell, but I can--oh wait; nevermind. It is hell.

Yes, friends, you may think I’ve lost my marbles, but you heard that right.  I can get gas for $0.20 per gallon, including taxes, and even get a free dill pickle with it.

I do have a secret.  My two dimes are pre-’65, .900 fine silver US coins. 

See, the guy I get my gas from is a bit of a wheeler-dealer.  So am I.  And he and I both know that silver closed down a penny today, to $33.43 per ounce.  That makes a silver dime worth $2.42.  Yup, the same 10¢ that used to purchase a local phone call, hence the saying “drop a dime on someone.”

A little background–the Constitution grants Congress the power “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; …”  Art. 1, Sec.  8.   This was written into the Constitution for a couple of reasons.  Prior, each colony had its own currency, and so did the fledgling United States–so called “continentals.”  Exchange rates were set on a state-by-state basis.  By the time the Constitution was ratified, these had lost over 99% of their value–this in spite of the face that we won (as opposed to say, Weimar marks after WWI).

Not wanting to repeat the fiat money fiasco, Congress established the US dollar as worth 1/20th of an ounce of gold, and established an exchange rate between gold and silver.  This was necessary as ten or twenty-five cents worth of gold would have been too small to coin.

The value of money was fixed by Act of Congress.  Paper notes were redeemable for face value of “money,” i.e. gold or silver.  Remember Silver Certificate dollars?  I was young, but I do… you could go into any Federal Reserve Bank office, just walk up to the counter, and redeem them for $1 face value of US silver coin (today’s value- $24.18!) until 1968.  Gold, confiscated under FDR and revalued from $20 to $35 per ounce (43% devaluation overnight!), could be had until Nixon took us off the gold standard, though by then you had to be a foreign government to redeem dollars for gold.  Today, gold is worth $1685 per ounce.

Silver says the value of the dollar has dropped 96% in value since 1968, and gold says the value of the dollar has dropped 98% since 1971.

Money is a tricky thing.  Anything is worth exactly what someone is willing to give you for it.  Whether it’s a goat, a bushel of turnips, a beaver pelt, an ounce of tobacco, or whatever.  Money is a store of value, and makes it possible to trade a bushel of turnips with a man who doesn’t want a beaver pelt.  That guy can simply pay cash instead.  But the government, under today’s fiat (pure paper) money system, can print money.  There’s already two and a half times as much cash in circulation as there was when Odummy was sworn in, each of those dollars chasing the same amount of goods and services in the economy.

This may sound like the ramblings of a “Ronulan,” or a “Paulbot,” which I am becoming.  But what prompted me to write this was an email I received this afternoon from Christine O’Donnell’s PAC (disclosure, I am in love with her, for the record).  It reads, in part:

“I know I can come up with a three point plan for lowering gas prices that does not mention the word “drill”. I can come up with a plan that does not have anything to do with the economically sound move of drilling our own national resources … a move that would also strengthen our national security. (Sorry, I couldn’t resist getting that in there!)

“So here’s my plan:

“OPEC (Organization of Petroleum Exporting Countries) sets oil prices based on the U.S. dollar. Oil is traded in that currency as well. As our currency is devalued, the price of oil goes up. Economics 101 tells us what to do:

  1. Cut government spending… drastically
  2. Start paying down the debt and don’t raise the debt ceiling, at least not without serious measures to tackle the debt.
  3. Balance the budget and reduce the deficit immediately.

Bottom-line: Serious steps towards economic stability will strengthen the dollar. When the dollar grows stronger, gas prices will go down!!!

“Pres. Obama is either flat out lying when he says there is nothing he can do to lower gas prices other than drilling, or he doesn’t understand how gas prices are set or how our economy works.”

As Voltaire said, “Paper money eventually returns to its intrinsic value- zero.”

 

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18 Comments

  1. AttackWatch! AttackWatch! Ina…you win the prize for coming up with the most creative and provoking variation of the PresidDunce’s name on AWD. Still laughing uncontrollably. That should set the alarm bells off at the RaceCard Command Center.

    And yes, believe or not the PresidDunce is lying when he says there’s nothing he can do about gas prices. Not because he is powerless legally, but rather because he is, like most politicians in Washington, in the pocket of Big Oil. He can rail night and day about fairness, however he will never do anything to ease the pain ay the pump because that would cut into the oil companies’ obscenely large profits. But I bet in November he will wish he could have done something because the voters will be blaming him for $5 a gallon gas. Heck, regular gas is already $4.25/gallon in SoCal where I live.
    How hard would it be to tell the oil companies that they can’t import oil, refine it and sell to the Chicoms? Seems logical to me, however the speculators who control the flow and price of oil would never allow this to happen. And us sheep are supposed to stand silently while we are sheared. Since my job frequently requires me to commute 200-300 miles a day, the escalating price of gas has me wondering if it wouldn’t be better to just work locally (and lose 50% of my income) or go on unemployment. There is no public transportation infrastructure adequate to address my commuting needs since I often start work at 6 a.m. and work until 10 p.m. Trains don’t run that early or late. And what am I supposed to do with the 100 or so pounds of tools I need for work? Public transportation doesn’t work for millions of Americans who have to cover long distances to get to their jobs.

    And like the idjit in the White House, Republicans in Congress have done little of substance to bring the country to energy independence even when they have a majority. And that is because they are also owned by Big Oil and the speculators on Wall Street. Drilling extensively in the U.S. would no doubt increase supply which in turn would cut into profits. Heaven forbid that politicians put the interests of their constituents over those of their masters on Wall Street. No, the RINOS make a lot of noise about increasing oil production at home, but somehow it never comes to fruition. And it never will because most of Congress is totally corrupt under any definition of that word. The only solution is for us to vote out any politician who has any connection with Wall Street, Big Oil or lobbyists. I figure that would get rid of 90% of the current membership in the Congress. Then we vote in Republicans who we know won’t go back on their word once elected. And then drill Baby drill!

    • Inagada Davida

      Mark, I had to rethink that name… it is, after all, about his policies.

      • Well, it was still funnier than heck!

        And, BTW, the price of regular gas when I filled up yesterday was $4.35! Do you think the oil companies are intentionally trying to assure ODummy’s defeat in November by raising prices? I suppose not because they make money no matter who occupies the White House.

  2. Inga, you batsh*t crazy Paulbot! How dare you question fiat currency!!! The QE2’s more than just a great ship–it’s great fiscal policy! Right? I think. Maybe not.

    Oh, and for the record, I’m with you on O’Donnell. Damn she’s a cutey. (Cuty? Cutee? What do none of these spellings look right?)

  3. Inagada…

    Excellent piece of work, full of information for all to read and contemplate. I know I learned a thing or two I didn’t know, some I did but didn’t make the connections as you have so simply explained for dummies like me when it comes to much of this.

    Btw…I’ve always admired Christine, worked hard to get her elected if possible with another gal friend via the internet in any venue we had. Oh well…we all know how that ended.

    As to Paul…heck, there’s always been much I’ve respected about him, always will.

    A few other things, I saw a show about the dime and gas via Varney’s Show on FBN about two mornings ago…but you explained it much better as far as I’m concerned. Plus I’m old enough to remember the ‘silver dollar certificate’ too, just never paid much attention to the significance of it. Now as to the ‘drop a dime’…I didn’t know that’s what the meaning of that phrase was…I always thought it was something on gangster movies meant for a hit job…lol. Makes more sense the way you put it…since many of us are old enough to remember that’s all it took to make a call via phone booths…which are long gone now.

  4. Here you have dunderhead BOR defending Dear Leader….again.

    http://www.mediaite.com/tv/video-fox-news-defends-president-over-high-gas-prices/

  5. Enoch Powell

    Of course Obonzo is lying. Leftist traitors prefer to lie. Lying is their primary tool. But Obonzo doesn’t want lower gas prices. He wants to gut what’s left of our pitiful economy and pauperize White middle class people. The left destroys all other power centers, and replaces them with a brutal tyranny. Obonzo and his handlers are determined to follow Lenin’s example and utterly destroy everything in their quest for power. The cowards in the GOP are willfully denying this harsh reality, and GOP RINOs are actually on board with it. It’s all horribly short-sighted and self-destructive, but like the spoiled brats that they are, the leftists want what they want, when they want it, and reason and logic have nothing much to do with it. That’s why the leftist ideology is literally a symptom of mental pathology. It’s a rigid, obsessive form of reality denial, and mindless self-destruction.

    • blue eyed devil

      You are on the money with your assesment! I have been saying this for the last few years. Thats why whites are the target.. we are the majority of the middle class so therefore must be destroyed. What better way to do it than redistribute our incomes ( higher taxes ) erode our moral culture ( media and public schools ) and delute/erase our influence and contributions by introducing “diversity” thru affirmative action and other social programs…. there is a war against us.

  6. Ron Paul – competing currencies. Legalize Gold and Silver to use as money. What are they afraid of?

  7. KennakaKeeper

    What is the #1 EXPORT of the USA, Yes sir folks it’s gasoline……It’s the old story of supply and demand. Keep supply low and jack the price because of the price gouging companies can kill several birds with one stone (or in this case a gallon of gas)
    http://www.usatoday.com/money/industries/energy/story/2011-12-31/united-states-export/52298812/1

  8. We/You are all becoming Paulbots as you start to realize that Ron Paul is correct on every issue that is important in the mainstream today.

    – The economy
    – The Fed
    – The currency
    – Endless Wars
    – The Constitution

    etc.

    • Jack,

      Most conservatives, if they sincerely thought about it, would have to agree with many of Paul’s ideas. I used to think the guy was just some crazy old coot who had a lot of even crazier supporters. Lately though, I realize that much of what he says makes sense. However, his ideas on foreign policy, to the extent that they are isolationist, will always be a major stumbling block for Dr. Paul in attempting to garner the conservative vote.

      In 2012 the guiding principle for conservatives in their effort to retake the White House is electability. And Paul falls short in that department. That is a demonstrable fact. There is just too much at stake to risk 4 more years of the Master of Disaster. We can only hope that some of Dr. Paul’s views are recognized and woven into the new Republican president’s policies.

  9. SPURWING PLOVER

    Time to drill in the ANWR and tell GREENPEACE and SIERRA CLUB to GO POUND SAMD

  10. For the heck of it…thought I’d throw this in here too.

    http://www.thegatewaypundit.com/2012/03/another-giant-fail-on-obamas-growing-list-of-losers-the-fisker-karma/

    Dontcha just love it? Pretty on the outside.

    • Big:
      The Chevy Volt’s range (electric) is about the same as that of an electric car built in the late 1800’s. Technologically advanced my foot!

  11. gas prices are a game of supply and demand. When demand goes up or supplies go down, prices goes up. Prices go down for the opposite reason: demand goes down or supply goes up. The recent spike in gas prices comes from the EU and US economic sanctions on Iran, a major oil producer. This leads to a decreased global supply and, by extension, increased gas prices. The US can do two things: increase domestic oil production reduce demand for gasoline.The first is already being accomplished while the second is a work in progress.

    One way to reduce demand on gasoline is to increase the fuel efficiency of automobiles. When drivers need to fill up less on gas, demand goes down, they save money, and, eventually, prices will drop. Now fuel-efficient drivers will save even money while the rest of the country pays less on fuel. Everyone wins.

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