A Congressional Joint Economic Committee reports the Obama administration’s monetary policies have added up to 56.5 cents to the price of every gallon of gas at the pump,
Had the dollar maintained the value it was when Obama took office, gasoline would cost in the area of $3.23 per gallon in New Jersey, instead of the $3.80 average cost it is now, and up to $4.00 per gallon in many parts of the country.
“Analysts and pundits often cite, correctly or incorrectly, the turmoil in the Middle East, a strengthening global economy, or speculation as the causes for the run up in crude oil prices,” the report said. “What is rarely discussed as an important factor in the rise of the dollar price of oil is the role played by the dollar itself.”
Federal Reserve Chairman, Ben Bernanke claims there is little the fed can do about gas prices. His deceitfulness is appalling, although not unlike most others in this Administration, not unexpected.
Bernanke knows that Federal Reserve monetary policy plays a significant role in gasoline prices. Expansionary monetary policy leads to more dollars being available in world currency markets and weakens the dollar. The weaker dollar results in higher import prices. More than half of the oil consumed in the United States comes from foreign producers, and because oil is the main input needed to produce gasoline, higher oil prices mean higher gasoline prices. Read More
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