More dollars driving higher gas prices

Many things influence gas prices. Yet few major news stations mention one major reason: the value of the money used to purchase the gas. If the value of the money falls 10 percent, than the price of gas will rise about 10 percent since gas companies want the same value.

Gas price rises in sync with increase in quantity of dollars

Now, it’s hard to establish the value of money, but we can show the quantity of money over the past ten years. As the quantity of dollars increases, the value will decreases. The chart clearly shows that as banks created more dollars, the value of the dollar declined, and the gas price rose.

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