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host · 04-13-2008, 08:23 PM

The thread question, more aptly should be....how is the declining purchasing power of the US dollar, affecting you? The rising price of fuel is a reaction to the declining valuation of some of the world's paper currencies. Gasoline has barely risen in price, if purchased today in eruos, compared to in 2002. Gasoline is cheaper now than in 2002, if purchased with gold or silver.

I bought a small roll of Kleenex brand paper towels that cost 95 cents recently, and the price yesterday was $1.12. I think this is only the beginning of a period of dollar purchasing power decline, for everyday goods. The dollar will buy more house, more NYSE and Nasdaq stock shares, and more low fuel mileage vehicles, but that has more to do with declining demand, than it does dollar valuation.

I am surprised that the dollar has not dropped in value more deeply and more rapidly. Since last september, the Federal Reserve has lowered short term interest rates from 5-1/2 percent, to 2-1/4 percent, with the expectation of further reductions. The short term interest rate is now half the level of the euro rate.

The only answer is fuel conservation in the US. Even with the slowing economy, the US borrowed $63 billion, instead of the expected $59.5 billion, for one month's purchase of imports. We're using 25 percent of the world's total daily petroleum production, with just 6 per cent of world population. We import 2/3 of the 22 million bbl petroleum equivalents that we consume here each and every day. We only produce 1/3 of what we use, and we borrow the money to import the rest. US petroleum production peaked at 10.6 million bbls per day, 36 years ago, and our society went right on consuming it as if we still produced the bulk of what we use, here.

There will be periods of lower gasoline prices, with lessening demand coming due to high prices and deep recession, higher unemployment, less demands for transport of goods, but the trend is now established. The conservation mindset and commitment is still to come, and it will be resisted, and a catalyst for a huge change in the way that we live. Houses in neighborhoods located further from jobs will lose value, and homes nearer to jobs and shopping and amusements will increase in value. The northern US population will move south in even greater numbers.

Food and consumer goods will continue to rise in price, and income will not keep up. Suburban development (sprawl), fast food industry, and tourism were all planned and built with no allowance for expensive motor fuel, and no money was allocated for mass transit buildout, compared to highways and vehicle bridges. Now we'll get to experience the consequences of such narrow thinking and lack of flexibility in design and allocation of development resources.

It's probably a good time to start a new business selling or offering motorcycle operation instruction.

04-13-2008, 08:23 PM	#58 (permalink)
host Banned	The thread question, more aptly should be....how is the declining purchasing power of the US dollar, affecting you? The rising price of fuel is a reaction to the declining valuation of some of the world's paper currencies. Gasoline has barely risen in price, if purchased today in eruos, compared to in 2002. Gasoline is cheaper now than in 2002, if purchased with gold or silver. I bought a small roll of Kleenex brand paper towels that cost 95 cents recently, and the price yesterday was $1.12. I think this is only the beginning of a period of dollar purchasing power decline, for everyday goods. The dollar will buy more house, more NYSE and Nasdaq stock shares, and more low fuel mileage vehicles, but that has more to do with declining demand, than it does dollar valuation. I am surprised that the dollar has not dropped in value more deeply and more rapidly. Since last september, the Federal Reserve has lowered short term interest rates from 5-1/2 percent, to 2-1/4 percent, with the expectation of further reductions. The short term interest rate is now half the level of the euro rate. The only answer is fuel conservation in the US. Even with the slowing economy, the US borrowed $63 billion, instead of the expected $59.5 billion, for one month's purchase of imports. We're using 25 percent of the world's total daily petroleum production, with just 6 per cent of world population. We import 2/3 of the 22 million bbl petroleum equivalents that we consume here each and every day. We only produce 1/3 of what we use, and we borrow the money to import the rest. US petroleum production peaked at 10.6 million bbls per day, 36 years ago, and our society went right on consuming it as if we still produced the bulk of what we use, here. There will be periods of lower gasoline prices, with lessening demand coming due to high prices and deep recession, higher unemployment, less demands for transport of goods, but the trend is now established. The conservation mindset and commitment is still to come, and it will be resisted, and a catalyst for a huge change in the way that we live. Houses in neighborhoods located further from jobs will lose value, and homes nearer to jobs and shopping and amusements will increase in value. The northern US population will move south in even greater numbers. Food and consumer goods will continue to rise in price, and income will not keep up. Suburban development (sprawl), fast food industry, and tourism were all planned and built with no allowance for expensive motor fuel, and no money was allocated for mass transit buildout, compared to highways and vehicle bridges. Now we'll get to experience the consequences of such narrow thinking and lack of flexibility in design and allocation of development resources. It's probably a good time to start a new business selling or offering motorcycle operation instruction.