Why Are Gas Prices So High?

This post is more difficult to digest than my other ones and will require some homework on your part.

Here it goes:

The falling dollar, brought about by a slowing economy fed by the mortgage industry implosion, is causing bigger investors to put their money in commodities rather than the US markets. Stocks are more volatile and react quickly to changes in the national economies. Commodities are seen as hedges to inflation.

What this means is that commodities, oil for example, are great places to put your money during economic uncertainty because oil will always be needed to drive the world's production of goods and services.

A weakening dollar requires that more dollars be spent to buy the same amount of oil that it used to buy. Basically, a five cent hamburger now costs $2.99 because you are buying the same burger with money that is not worth as much as it used to be.

Our anemic currency, coupled with wages that are not keeping pace with inflation, leaves you gasping for air when you write your rent check, light bill check, natural gas check, and now too, your check at the grocery store.

When the economy stabilizes, the mortgage market gets back on its feet, you begin getting raises, and price fluctuations become less frequent, gas prices will level off and begin to fall.

Until then, hold on to your hat. It will be quite a ride...on a bicycle.

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