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Given all the dollars the Obama Admin has flooded into the economy, is it really surprising to find the $/prices of commodities are rising?

Average Gas Price Poised To Hit $4 A Gallon This Week

Dollar index hits 3-year low 

"“The price of oil is going up because the value of the dollar is doing down,” said investment adviser Chris Butler of Overland Park-based Butler Lanz & Wagler. “It’s going down because we’re printing dollars like there’s no tomorrow. If (Bernanke) is honest, that’s exactly what he wants to have happen.”

"When the value of the dollar falls, a higher price is necessary to bring global supply in line with global demand,"  Chris Lafakis of Moody's Analytic



Answer Question
 
grlygrlz2

Asked by grlygrlz2 at 12:19 PM on May. 4, 2011 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (17)
  • No it is not suprising at all, it is truly sad and scary.
    cowboysgirl3227

    Answer by cowboysgirl3227 at 12:23 PM on May. 4, 2011

  • No, it's not surprising. But what is scary is that it's deliberate.

    QuinnMae

    Answer by QuinnMae at 12:26 PM on May. 4, 2011

  • No surprise here. What will surpise me is if you get more than 6 answers...your question is a little complex and you really need to add some drama. LOL

    Everything is going to go up even more. Gas here is more than $4 a gallon. I am actually thinking of having a minimum amount to get free dry cleaning delivery or charging a small fee. By the time I pay for the gas and $8.50 per hour for someone to deliver it we make no money on a $10 order.
    yourspecialkid

    Answer by yourspecialkid at 12:27 PM on May. 4, 2011

  • Not surprised at all. We are being run down so we have to rely on them and I think its all in their plan... UGH

    amazinggrace83

    Answer by amazinggrace83 at 12:27 PM on May. 4, 2011

  • Another article to consider in the discussion, "The evil oil-speculator theory also runs up against the fact that the Federal Reserve's inflationary policies (QE2) and other factors have continued the dollar's slide against foreign currencies -- to a three-year low. As the dollar loses value, oil sellers demand more for their product. "Commodities, along with most traded goods globally, are priced in dollars," former Federal Reserve official Gerald P. O'Driscoll of the Cato Institute writes. "It is the old story of too much money chasing too few goods."

    grlygrlz2

    Comment by grlygrlz2 (original poster) at 12:29 PM on May. 4, 2011

  • QuinnMae, I agree 100%
    gammie

    Answer by gammie at 12:57 PM on May. 4, 2011

  • It's not surprising, but really commodities are only doing what they do anyway. As of this morning however, they are starting to level off a bit. maybe even downturning. Who knows.
    jewjewbee

    Answer by jewjewbee at 1:07 PM on May. 4, 2011

  • No, I have been saying it will happen since the beginning when Obama started shoveling money at the recession. What you have here is what I wish every person in the country would realize. No matter how many times they say we are making jobs, seeing the stock market rise, selling a few houses, seeing the unemployment rate drop by a point or any other ridiculous indication of a recovery they are lying to America. If this is how you want the remainder of your life and the whole of your children's life to be then maybe you are satisfied for now. The worst is yet to come and people will be better off if they realize that.
    Commodities (everything we use and buy)do not rise at this level during good times and they are NOT leveling off. Tomorrow, next week or next year they will be higher and then we will be closer to seeing the worst to come.
    itsmesteph11

    Answer by itsmesteph11 at 1:29 PM on May. 4, 2011

  • I'm sure it's surprising to those who think Keynesian economics actually work...
    NotPanicking

    Answer by NotPanicking at 1:46 PM on May. 4, 2011

  • http://www.businessweek.com/news/2011-05-03/most-u-s-stocks-retreat-for-second-day-as-silver-oil-decline.html


    like I said, as of this morning, commodities are down and leveling off.

    jewjewbee

    Answer by jewjewbee at 1:55 PM on May. 4, 2011

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