Where's Penn & Teller? This needs to be the next episode of Bullsh!t
Google an inflation calculator; and select 1980 as your starting year. Enter $1.25 about what a gallon of gas cost in 1980. Select 2011 the most recent year the calculator allows. Click calculate and prepare for a surprise The amount that comes up is $3.43 which is what the BLS calculator says is the buying power of $1.25 in 1980 money today.
What does it mean? It means that gas prices today, are about the same as they were in 1980. You may be paying more in terms of the number of dollars, but youre really paying the same in terms
of the value of your money! The only thing different is you need more paper dollars to buy the same thing. The value is the same, but the money is worth less. The increase in gas prices is a mirage, a fiction. The commodity itself has not increased much despite the much-feared uptick in global demand and in spite of the alleged and endlessly imminent bogeyman of peak oil.
And so we come to the awakening.
If the world was really running out of oil or within sight of running out the actual cost of the end product, gasoline, would be going up in real terms. So how come the real price of gas is about the same now as it was 32 years ago? The reason should be obvious:
We have plenty of friggin oil.
Enough oil not merely to meet current demand, but foreseeable future demand.
Which means, weve been scammed by scare-mongering about peak oil and robbed (and deceived) by inflation into accepting that its so. The price of oil goes up because the amount of money being printed has increased. Think about it, the airline industry depends on affordable oil. Without it, air travel becomes a means of travel open only to the rich who dont fly coach or even commercial. Yet Airbus has invested big time in fleets of A380s designed to haul 525 people. These huge airplanes burn up to 81890 gallons of fuel. Fuel that must be available at an economically reasonable cost for the forseeable future in order to fill the seats with passengers, most of whom are just ordinary folks who do fly coach and who cannot afford a first-class ticket, let alone a private jet. Do you suppose they are morons? That they dont know about peak oil or are just ignoring the truth about the imminence of The End of Oil? Or do you suppose its more plausible that they know there is plenty of oil now and for the foreseeable future and are making business decisions accordingly?