Quote:
Originally Posted by aceventura3
Nothing occurs in a vacuum, many forces are in play affecting exchange rates.
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And to take this further, this is more than about exchange rates or the value of the U.S. dollar. It likely really just comes down to supply and demand and prices the market is willing to bear.
There are a number of things going on beyond currency issues right now that to some extent each have an impact that pushes prices up: instability in the Middle East; the Mississippi River is flooding, putting refineries at risk; it's spring, heading into summer; there isn't all that much competition between suppliers; etc.
This isn't just about one thing. There are a number of reasons why gasoline prices are high.
This is also why I think there is little much else Obama can do that isn't invasive or extreme. One idea is to maybe make use of the shitload of natural gas the U.S. is sitting on and not using nearly enough.
It should be more about what everyone can do. Maybe try car pooling. Maybe take public transit. Maybe buy a scooter. Or, if it makes sense, use your bicycle more.
I know not everyone has this kind of flexibility. If you don't, then it looks like you should be prepared to make more room in your budget for transportation costs. There is no reason to expect the cost of gas to drop significantly anytime soon.
As a substance, gasoline is relatively cheap to begin with. The problem, maybe, is in how much we use.