Rising Energy Prices and the Falling Dollar

“Oil prices are on the minds of many Americans as gas hits $4 a gallon, and continues to surge. How high can prices go? How can we solve these problems? What, or who, is to blame?”

“Part of the answer lies in understanding bubbles and monetary inflation, but especially the Federal Reserve System. The Federal Reserve is charged with controlling inflation through interest rate manipulation, however, many fail to realize that creating money, and therefore inflation, is really its only tool. When the Federal Reserve inflates the dollar as drastically as it has in the past few decades, the first users of the newly created money go in search of investments for their dollars. They must invest this money quickly and aggressively before it loses value. This causes certain sectors to expand beyond what would naturally occur in the free market. Eventually the sector overheats and the bubble bursts. Overinvestment in dotcoms eventually led to a collapse of the NASDAQ. Next we had the housing bubble, and now we are seeing the price of oil being bid up in the creation of another new bubble. Investors are now looking to commodities like oil, for stability and growth as they pull capital out of real estate. This increased demand for investment vehicles related to oil contributes to driving up the price of the actual product.”
[Source: Libertarians for Ron Paul - Posted by WARONYOU]

WH Press Sec NOT ALLOWED to Talk about the Dollar

Gee I wonder why?

I bet MSM blames American workers.

PAUL DEFEATS CLINTON IN CLINTON COUNTRY

MIDDLETOWN, CONNECTICUT - Republican presidential candidate Ron Paul defeated Democratic candidate Hillary Clinton in the first straw poll to pit Republicans against Democrats on the same ballot. Middletown, CT held its city straw poll Saturday night at the Church of Holy Trinity. Proceeds from the $10 fee for participating were donated to the Connecticut Breast Cancer Coalition. Paul led on the first ballot with 42 percent to Clinton’s 30 percent and Obama’s 20 percent. Other candidates received 2 percent or less. Other trailing candidates were eliminated and on the third ballot Paul prevailed 46 to 42 percent.

Bryan Tracy, who is with the Paul campaign in Connecticut, said although the Clinton supporters in Middletown were surprised, he wasn’t.

“This shows Ron Paul’s electability in the general election,” Tracy said. “We think that when people get a chance to compare our stands on the issues with Hillary’s, we will prevail.”