Bookmark and Share


James, why are gas prices so high? Denise C. Bogalusa, La.

People talk about gas prices being so high, and what can be done about it. The 800 pound gorilla in the room that no one is talking about is the Federal Reserve. In 1964 I could buy a gallon of gas for 23 cents and have two cents left over for bubble gum. In 1964 a quarter was 90% silver and 10% copper. Its intrinsic value was 25 cents because an ounce of silver was worth a dollar. Today the metallic value of a 65 or newer quarter is worth about 3 cents (the quarter it is not silver anymore). That 1964 quarter today is worth around $6.00 plus (in metallic value). I can take that 1964 quarter to a coin shop, cash it in, and buy over a gallon and half of gasoline. So in reality gasoline has not gotten more expensive, the dollar has lost value. No matter who is President, until we as a nation adopt a sound monetary policy, prices will rise and purchasing power will drop. Your retirement money that you put away is slowly being robbed of its purchasing power. With more money being printed, chasing fewer goods, prices will rise. This type currency is called “fiat currency”. This means it is backed up by only the faith in the government and not by gold or silver. We as a nation went off the gold standard in 1971 under Richard Nixon. We did this because we told our leaders to continue deposit spending. Nothing has changed, now as a nation we are over 16 trillion in debt. The average life span of a fiat currency is around 40 years. We as a nation have been under this type monetary policy for 42 years. John Adams said it best, “There are two ways to enslave a nation, one from the sword, the other from debt”. Peace and prosperity to you and yours, James Morris


  Return to frequently asked questions



Home :: Show :: Archives :: Links :: Contacts :: Login

Ask The Master Auto Technician © 2009