US consumers in weak position...
GASOLINE PRICES, in US Dollars, have risen around 40% in the last year, writes Brian Hunt in Steve Sjuggerud's Daily Wealth.
The US national average is around $4 per gallon. The common talking point among economists is that every one-cent rise in the price of gas takes $1 billion from US consumers.
But there are always two sides to a price. On one side, you have the asset, service, or product being measured. On the other, you have the measuring "unit." The trouble with measuring assets in dollars right now is that the measuring unit is worth less and less each day.
How about gauging gasoline's price action in a durable currency like the Australian dollar? While the Australian dollar is no absolute safe haven, the country has managed its finances better than the US Plus, Australia's dollar is heavily backed by awesome deposits of natural resources like natural gas, iron ore, uranium, and gold.
Below is a three-year chart of gasoline in the eyes of an Aussie. As you can see, when measuring gasoline in a durable currency, we see the fuel is up modestly in the past year... and has actually declined in price over the past three years.
Want to protest high gas prices? Protest the plummeting dollar!
Article Source: goldnews.bullionvault.com
