Gold, Oil, Interest, O'Reilly, Obama
The price of gasoline is soaring while interest rates remain at historic lows. Working people and their families are suffering from high unemployment and gas prices, while seniors, dependent on interest income, are eating dogfood. All Americans are suffering from the housing crisis in various ways.
Bill O’Reilly on The Factor goes on a nightly rant against the oil companies (everyone hates them), but, although many factors are involved, the main reason for rising gas prices and low domestic interest rates is rooted in policies of the Obama Administration.
First, a little history: although the Arabs publicly stated that the reason for their oil embargo in October, 1973 was payback for our support of Israel, the main reason was economic. Traditionally, Arabs sell oil for dollars and convert their dollars to gold. From 1933 to 1972 the gold price was fixed at $32 per ounce, and it was illegal for Americans to own gold. In 1972 gold was freed, and its price soon went to $100. The oil embargo caused the dollar-price of oil to jump so that the gold-dollar-oil relationship was repaired, and the embargo ended.
Now, as the debt-financing of the Obama Administration continues, see what is happening to the price of gold:
Now look at what has happened to interest rates within the United States:
In other words, Obama is deliberately keeping interest rates near zero here while causing the value of the dollar as an international currency to plummet, thus causing gold and oil prices to increase dramatically.
One might ask what Obama’s motives really are in arranging this catastrophe, especially since he is doing everything he can to throttle domestic production.