The Real Price of Oil: Dollars, Gold, and the Price of Tea in China Posted in Fuel, Gas Prices, Newsworthy, Oil Industry, Politics · Published on August 16, 2008
Oil, it’s the lifeblood of our society. It’s given us the freedom and wealth we have today. It’s given us automobiles and machinery and greased the wheels of the industrial revolution. It made old Jed a millionaire. But oil’s in trouble, the price is up and everyone thinks they understand it. But what if the price of oil wasn’t really up? What if it were just an illusion?
‘The price of oil is skyrocketing, and that means gas prices are up…’ That’s about the limit of what most Americans know and understand about the whole oil situation. But there are more complex issues at work, and they involve more than just Middle East politics and China.
The American Geological Institute (AGI) recently released a report looking at the price of crude oil in relation to the U.S. dollar and the price per ounce of gold. It highlights “