Why Fuel Prices Are Skyrocketing- March 7, 2022
Read today’s article here ‘Europe Returns to Fossil Fuels’ March 21, 2022
Brent crude crossed $100 weeks ago. Prices hadn’t been this high since 2014. But wait! Then crude oil crossed $130 per barrel 2 days ago. It is currently trading around the $121 price as of 7:00 PST today. Oil hasn’t been this expensive since 2008 as the recession rattled households and markets.
There are two prominent arguments for rapidly rising fuel prices:
1. Inflation is responsible for a large part of price increase in fuel (prices aren’t really going up, the dollar is losing purchasing power)
2. Sanctions on Russia are putting a squeeze fuel availability in the US. The United States currently get 7-10% of all oil supply from Russia. The US has recently imposed sanctions on the Russian financial sector, tanking Russian stocks and blocking payments systems for many people in the country. However, the US continues getting a portion of it’s petroleum from Russia. Could Russia be retaliating against sanctions by raising costs of US oil imports?
There are other factors which are influencing commodities markets- the above are just 2 of the major issues which are likely contributing to volatile price movements (mostly up) in crude oil. Commodities include grain, gold, silver, feeder cattle and coffee- to name a few.
These endless tumultuous events will lead to more stimulus money, which is printed by central banks whenever there is a ‘crisis’. From the war on covid to the new war in Eastern Europe, there’s no time for peace.
Who knew that the cure for covid was a war?
This is the pattern: one crisis loses steam in the news cycle, then a new, more sever crisis must take the stage. Why?
To give central banks yet another excuse to issue more debt which devalues every dollar you own, and more importantly, virtually guarantees a bleak economy to future generations- to say the least. Digitally printing more money is the same as issuing more debt…
Crisis provides a reason for banks to come to the rescue with more money printing, putting the country further into debt.
There’s only one way the out-of-control fiat money printing (by central banks and governments) ends.
Just look at history. Whether it was monetary inflation in 18th century France which destroyed millions of people’s lives and the morale of the country for years to come…
Or whether is it was the South Sea Bubble in early 18th century Britain, which also ended in disaster…
Or the Weimar inflation in Germany after WW1, which led to the dire conditions and destitution which led Hitler to take advantage of the situation and rise to power ahead of the most devastating war in world history- WW2.
And don’t forget the Roman Empire and it’s demise…
Or how about Venezuela, Argentina and Zimbabwe- once productive, resource- rich nations, now impoverished, war- torn and without reliable money. The key is ‘without reliable money’. There is a saying ‘When the money goes, everything goes’.
People often overlook the importance of a sound currency, and it’s an easy mistake to make. It takes some reading and historical context to understand why sound money also insures a society that is functioning. A society which functions by rule of law, allows people to produce and prosper as a result of their individual and collective productivity, must have reliable currency.
When criminal governments begin taking loans out on taxpayers’ and citizens’ future by printing more money into existence, while the national debt grows beyond being able to ever be repaid, there is hell to pay… eventually… one way or another.
America is in the late stages of a massive debt bubble, caused by central banks and politicians who use each crisis as an excuse to print more money. And since the year 2,000- endless overseas military misadventures, ‘stimulus’ payments have led to a nation which seems to be losing it’s touch, now add in skyrocketing prices in commodities, consumer goods, and materials.
Money printing by central banks is effectively taking a mortgage out on every living, and unborn American’s future. Andrew Jackson warned of this over 200 years ago, as did the founding fathers. They warned of the debt slavery that would ensue by allowing a group of global bankers to get control of and rig the nation’s money supply. But through the mists of time, their warnings were to be discarded by the politicians and policy makers, leading the country down a dangerous and dark road.
Where does it lead?
Lots remains to be seen. So when you see the price of food and gas rising, keep in mind that much of it has to do with the hidden tax being levied on everyone. This hidden tax is inflation, which causes prices to rise do to a growing federal reserve balance sheet, which literally cannot stop printing money. Inflation is caused by out-of-control central banks who are a very dangerous one trick pony: their one trick is to print more money. It’s like a drug addict who must return to get one more euphoric high. And at some point, the euphoria wears off.
‘Fiat Money Inflation in France: HOW IT CAME, WHAT IT BROUGHT AND HOW IT ENDED’
By Andrew Dickson White
‘The South Sea Bubble’
By John Carswell
’THE RISE AND FALL OF THE Roman Empire’
By Edward Gibbon
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