by Moody Adams Many Americans are not concerned by the debt ceiling passing $14 trillion. But, they are concerned about the soaring price of gas.
Geotimes reports, “But one cause of the high price (of gasoline) is the depreciating dollar.”
The government supports the debt by borrowing money and printing money. Printing money is like adding water to soup. The more water you ad the weaker the soup gets. The more dollars you print, the weaker their buying power.
“The value of the dollar has become much weaker and is now near all time lows,” writes Finance Discussion Forum.
This affects the price of commodities (oil included) because commodity futures are traded primarily on the NYMEX, CBOT and CME, which are American exchanges, thus the prices of these commodities are quoted in U.S. dollars. As a result, when the dollar becomes weaker, it requires more dollars to purchase the same amount of goods”
It is sad that our gas is going up. But what we should weep about is that our dollar is going down in value. This means we are taking a pay cut in salary, loosing part of our savings, and paying more for everything.
Thomas Jefferson said that borrowing money and leaving the debt to our children is “swindling.”
“I sincerely believe . . . that the principle of spending money to be paid by posterity in the name of funding is but swindling furutity on a large scale.”