Attention: TDR Forum Junkies 
Step 1 to feel better... remember when gas was . 70 cents per gallon and how mad you were when it hit a buck? Then when it was 1. 80 and you were mad it hit 2. 00 dollars? Then $3 and $4 dollars? Well now its above $4 in alot of places so just IMAGINE it's $6 right now so when you pull into the service station you feel happy as a clam your only paying $4. Then when it hits $5 you will still be mad but you will think... at least its not $6 yet.
Ha, ok some of you have a sense of humor and some of you don't. I'm not passing judgement on all but there seems to be alot of "un-education" going around and I hope you take some time to read a few links for some better understanding of our current situation. It doesnt take the sting away from filling your tank but at least it may put things in perspective. There is alot more to it but this is a good start to make people learn more.
Why Gas Prices Rise as the Dollar Falls - FlowChart (usnews.com)
Gasoline Prices in Perspective
You can find the same info on many websites so if you dont like the site and dont believe it just google and pick your own.
Here's a bit of one: For instance, let's look at 1955, a year most of us associate with big cars, big engines, and cheap fuel – automotive glory days, as it were. Gasoline sold for 29 cents per gallon. But one dollar in 1955 was worth more than one dollar today. If we were using today's dollars, gasoline would have cost $1. 76 per gallon in 1955.
Gasoline now costs around $3. 00, so we are worse off than in 1955, right? No. Because we were poorer in 1955 than we are today, $1. 76 then had a bigger impact on the pocketbook (that is, it represented a larger fraction of income) than $1. 76 today. If we adjust gasoline prices not only for inflation but also changes in disposable per capita income (defined as income minus taxes), gasoline today would have to cost $5. 17 per gallon to have the same impact as 29 cents in 1955.
One more: So how does a falling dollar contribute to rising oil prices?
It's a little bit complicated. Oil is priced in dollars on the world market. When the dollar is weaker, foreign currencies are stronger, by definition. That means people in other countries can buy more oil for the same amount of money. So let's assume oil is $100 per barrel, and $100 is equal to 70 euros. If the euro appreciates against the dollar by 10 percent, then instead of 70 euros it will take only 63 euros to buy one barrel of oil. So that oil becomes cheaper to foreigners, and they can buy more.
Ha, ok some of you have a sense of humor and some of you don't. I'm not passing judgement on all but there seems to be alot of "un-education" going around and I hope you take some time to read a few links for some better understanding of our current situation. It doesnt take the sting away from filling your tank but at least it may put things in perspective. There is alot more to it but this is a good start to make people learn more.
Why Gas Prices Rise as the Dollar Falls - FlowChart (usnews.com)
Gasoline Prices in Perspective
You can find the same info on many websites so if you dont like the site and dont believe it just google and pick your own.
Here's a bit of one: For instance, let's look at 1955, a year most of us associate with big cars, big engines, and cheap fuel – automotive glory days, as it were. Gasoline sold for 29 cents per gallon. But one dollar in 1955 was worth more than one dollar today. If we were using today's dollars, gasoline would have cost $1. 76 per gallon in 1955.
Gasoline now costs around $3. 00, so we are worse off than in 1955, right? No. Because we were poorer in 1955 than we are today, $1. 76 then had a bigger impact on the pocketbook (that is, it represented a larger fraction of income) than $1. 76 today. If we adjust gasoline prices not only for inflation but also changes in disposable per capita income (defined as income minus taxes), gasoline today would have to cost $5. 17 per gallon to have the same impact as 29 cents in 1955.
One more: So how does a falling dollar contribute to rising oil prices?
It's a little bit complicated. Oil is priced in dollars on the world market. When the dollar is weaker, foreign currencies are stronger, by definition. That means people in other countries can buy more oil for the same amount of money. So let's assume oil is $100 per barrel, and $100 is equal to 70 euros. If the euro appreciates against the dollar by 10 percent, then instead of 70 euros it will take only 63 euros to buy one barrel of oil. So that oil becomes cheaper to foreigners, and they can buy more.
Last edited:
