The Silver Bullet? Gasoline, when priced in ounces of silver, has been falling in value.

New York Sun ^ | 04/25/2011

[SeekAndFind]

“Now,” said President Obama in his most soothing voice, “whenever gas prices shoot up, like clockwork, you see politicians racing to the cameras, waving three-point plans for two dollar gas. You see people trying to grab headlines or score a few points. The truth is, there’s no silver bullet that can bring down gas prices right away.”

Funny the president should choose those words. As he was delivering his weekly radio address, we were just thinking about gasoline and wondering how its value has been faring in specie. One can’t tell that from its price, though, because we are dealing with, in the dollars issued by the Federal Reserve, a fiat currency that no longer has any connection with something real. But what if, say, we were to price gasoline in silver?

It turns out that if we price gasoline in ounces of silver, we discover that it has been falling in value. That is, a gallon of gasoline on the day President Obama was sworn in was worth about a sixth of an ounce of silver. Today, the value of the same gallon of gasoline has fallen to less than a 10th of an ounce of silver.

This is something to remember next time you pull up to the pump and get ready to pay four one-dollar greenbacks for a gallon, if you can even find gas at the $4 price Mr. Obama quoted in his weekly radio address. It’s not that the gasoline has been going up in value. It’s that the dollars you’re using to pay for the gas have collapsed in value.

This is not something the politicians like to discuss — at least not those in the administration, whose treasury secretary, Timothy Geithner, signs the currency, or those in Congress,

[Texas Eagle]

“Now,” said President Obama in his most soothing voice, “whenever gas prices shoot up, like clockwork, you see politicians racing to the cameras, waving three-point plans for two dollar gas. You see people trying to grab headlines or score a few points. The truth is, there’s no silver bullet that can bring down gas prices right away.”

Damned politicians.

Uhhhhhh....just for the sake of argument, just what are those three point plans?

[Wooly]

There is a silver bullet and it involves a major increase in domestic drilling. Although we do not have the refining capacity in the USA, what people forget is that if we substantially increased drilling the commodity price of crude would drop like a rock and the the Arabs and Hugo would find themselves strapped for cash really quick

[RWB Patriot]

Hmm, I’ll remember this the next time people say that backing up our dollars with tangible assets doesn’t do diddly.

I keep thinking of how angry the American people would be if they realized how much of a fool they’ve been played for in regards to our currency.

[Texas Eagle]

Agreed. I also think the very thought of us drilling for our own oil would cause the price to drop.

[baddog 219]

[LouAvul]

All that rhetoric is that idiot's way of saying, "Look, I don't know what I'm doing but you need to accept hardships so I don't interrupt my golf game."

"Oh, and Miss Piggy, the First Lady, says, 'Let them eat cake.'"

[MNJohnnie]

Truly idiotic argument. The world's economy does not run on silver.