When Gasoline is $100 Per Gallon

by John Klar
American Thinker

It is a mathematical fact that gasoline in the U.S. will eventually rise to $100 for a gallon (perhaps $130 for those interested in higher octane).

This is not fear-mongering, but basic arithmetic and economics. Here’s why.

The price of goods and labor is directly linked to money supply and market factors. This is not merely “supply and demand” economics, but an issue of overheating (or overleveraging) an economy by printing and/or borrowing too much money. When a government prints more money than the underlying economy is generating in real wealth, this is essentially a form of borrowing, often called “debt monetization.”

The United States has been doing this for decades, staving off the ordinary fluctuations in the economy punctuated by innovations and growth alternating with recessions – borrowing money in times of turmoil softens the blow, but also forestalls the consequences.

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