Our regular readers have been well informed of this because of our discussions of interest rate theory as it relates to the FOREX markets and money supply. But the question needs to be asked . . . How does this affect Peak Oil and the prices of fuel for myself and family?
Very good question. It's gonna hurt. Prices are going up faster than would occur simply because of the depleting oil supplies. Price inflation is being fueled by supply issues and because of money supply inflation which depreciates the value of the currency. I hate to be the bearer of bad news . . . but the government is (in my opinion) skewering the consumers who rely on the U.S. Dollar to hold its value in the marketplace.
The article notes that "some consumers will soon be paying more interest on credit cards and home mortgages." We agree completely. We've been telling our readers on a regular basis to get out of debt as part of our comprehensive Peak Oil survival plan. It's not to late to get started on the road to debt-free living.
I particularly liked the suggestion in the article that some "experts" suggested that interest rates "have been kept low by the purchase of federal government debt by foreign governments and investors." Good point . . . and since the continued printing of Dollars has caused a slide in the value of the currency . . . investors and foreign governments are not as excited about holding the devalued "Benjamins." Hence, interest rates will increase to support demand for dollars by increasing the return on investment. This is exactly what we've been telling our readers for months.
Take care our there and get out of debt.
Smart Energy Alternatives
posted by LiveWithoutLimits @ 7:06 PM
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