Tuesday, June 24, 2008

Gas Prices on the Rise- Conclusion

Concluding my extensive research on the prices of gasoline (well maybe not extensive) I would like to sum all we have gone over and explain how we can fix the problem immediately.

Gas prices have risen for a number of reasons. Mainly because of the American people's lack of education and understanding of economics. With this lack of understanding, politicians, political pundits, the mainstream media (drive by media for you Rush fans), and the intelligente world has been able to confuse, lie, distort, and trick most Americans into believing the opposite of what is true. It is politically savy to blame the oil companies for the high gas prices. And with the high prices comes record profits and thus it is very easy to correspond the two rises. But when you observe the math and realize that if oil companies decided to go a full year without making any profits at all (meaning they would all go out of business, our gas stations would run out of gas, and our economy would go into a depression and our country would not exist in less than 50 years) the price of gas would lower by an amazing $.34 per gallon on average. This is the total profit of a gallon of gas that oil companies receive to be paid to their shareholders in dividends and reinvested into their company. That could save Americans an astounding $5.00 a week!!

When the numbers are put in reality only one thing can help and that is lowering the price without government condemning those responsible for getting us gas to start with. Government has caused the prices to rise exponentially in the last few years. The problem is that it has been every different government (meaning ever two years when we have elections) we have had for the last 35 years that has caused what is just now really hitting us. Why just now? Because President Bush is the first President of the U.S. to really go after the Middle East in a true war effort. Because India and China are just now raising their standard of living and consuming the energy needed to allow their economies to flourish and their citizens to begin experiencing what we have been experiencing for the last century. Remember there are 2.3 billion people over there! When our government restricts exploration so extensively, when they regulate oil companies in a way that does not make it profitable to them to, in a free market, expand their production and refining capacity of gas, then you have to expect prices to rise.

When our government refuses to allow the free market to allow nuclear energy to be used in highly populated areas like France and Germany have, what do you expect to happen to the price of energy? Oil is used in the Northeast to heat many homes when nuclear energy could be used if allowed. This would lower the demand for oil and thus the price would be lowered just by allowing other energy sources to be used. Not to mention the clean coal that we have out west that would be cheap to find and very clean to use. With that coal we could lower the price of powering our homes and just as the U.S. military does, we could turn some of that coal into oil and use for gas. These things would lower our dependency on foreign oil thus speculators would not have to worry near as much about war in the Middle East and thus the price would fall even more. Further we could use domestic oil not having to pay out billions a month to countries that hate us to begin with. These nations include but are not exclusive to Iran, Saudi Arabia and Russia.

If the government would stop changing interest rates every time we have a slight slow down in our economy to have the American people surge too quickly in buying things like homes, then the value of the American Dollar would not fall so quickly. When we print money and lower interest rates and force or at least pressure and subsidize banks to make loans to people that do not need or deserve or can't truly afford a house, then the markets rise to quickly, the value of the dollar lowers becaue of the extra cash on hand in our economy making our purchasing power in world markets-such as the oil market, weaker.

I hope you understand that adjusted for inflation, gas should be between $2.50 and $3.00 and will never be as low as it was a decade ago. But today it is $4.00 a gallon! You can blame that on liberal politicians (democrats and some republicans as well) who have misled you for way too long. Lets get a clue people.

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