In an effort to stimulate the United States economy, the Federal Reserve has managed to increase oil prices. The increase in oil prices ultimately leads to high prices at the gas pump. Prices will continue to rise, by a nickel or a dime by as early as Thanksgiving. According to the Federal Reserve, the plan is to buy $75 billion in bonds, each month through mid 2011, in order to decrease the already low interest rates. There is concern that this plan will weaken the already devalued dollar, the dollar has been weakening against foreign currencies since the Federal Reserve began its stimulus efforts in August. Consumers will also experience increases in such items as food, as well as at the pump.
If you pay attention to the working of our economy, you will notice there is always an increase in gas prices around the holidays. The government may blame the increases on higher oil prices, but I personally believe it is the perfect times to price gouge the American people. Every year, before every major traveling holiday, gas prices will shoot up. You cannot tell me that it is coincidence, that we only have oil crises around the holidays. Increasing the value of the dollar would seem to be a higher priority than lowering interest rates on money that people cannot afford to borrow. As for the increase in food cost, this time we will understand exactly how insane prices can become. Also, in retaliation for the increased gas prices, we the American public should boycott the gas companies, buying only what we absolutely have to, in order to function. Our economy runs on the concept of supply and demand, if we stop running, playing, and wasting gas, prices will decrease because of the public’s refusal to be continually extorted by the gas companies and our government.
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