March 17, 2012
One of the understandable issues of concern which has been raised during David Cameron’s Brokeback-Mountain-style bonding session with his fellow liberal Barack Obama is the rising price of oil. Maybe they should watch the above clip of Ron Paul telling it like it is to Obama’s Spendthrift-in-Chief (aka head of the Federal Reserve) Ben Bernanke. (H/T Cobden Centre).
The point Ron Paul makes is a very simple one: when you print money everything – including oil – gets more expensive. Sure it may suit the Obama/Cameron narrative to insist that the oil price rise is down to external factors like Chinese demand or the tensions with Iran. But the truth is that a lot of it is a problem of their own making thanks to Quantitative Easing (QE) policies which are not only stealing money from savers, encouraging a misallocation of resources, and punishing pensioners, but which are also massively increasing the cost of living and the price of oil.
As Paul notes, “someone is stealing wealth and it’s very upsetting.”
As Paul also notes, by some measures, the price of a gallon of gasoline has gone down since 2006 (when Bernanke took over the Fed) not up.