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Good News! Gas prices only up 2 cents in 2 days

Posted by B. Daniel Blatt at 3:37 pm - March 2, 2012.
Filed under: Economy,LA Stories

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9 Comments

  1. Thank goodness the media are obsessively covering the issue of contraception.

    Comment by V the K — March 2, 2012 @ 3:45 pm - March 2, 2012

  2. In the short run, the price of gas is of course going up.

    In the long run, gas is getting cheaper. George Reisman showed that in 2006, the price of a gallon of gas was $3.50, while an ounce of gold was $700. The price of gas in ounces of gold was 0.005 Au oz./gal.

    In California, which has higher gas prices than the national average, gas today is $4.39/gal. An ounce of gold is $1759.30/oz. Gas is thus 0.002495 Au oz./gal.

    To put it another way, had the price of gas in gold ounces remained constant, gas in California would be $8.79/gal. Or, had the price of gas in gold ounces been 0.002495 in 2006, the national average then would have been $1.74. This shows that we are nowhere near Peak Oil, as if we were, oil prices, and this gas prices, should have been increasing relative to gold, a reusable resource.

    Gas is not the only resource that is rising in dollars but falling in gold. In 2006, a tall cup of coffee at Starbucks was $1.50. Today, it is $1.65- a 10% increase in dollars. But in gold, the prices were 0.0021428 Au oz. and 9.3787 E-4 Au oz., respectively, a decrease of 57%. If gold prices were still $700/oz, coffee would be $0.65. If gold prices in 2006 were $1759.60, coffee would have been $3.77.

    The fact is that American dollars are getting cheaper at a faster rate than gas or coffee or pretty much anything except houses. That is why prices in dollars are rising.

    Comment by Michael Ejercito — March 2, 2012 @ 3:57 pm - March 2, 2012

  3. Thank goodness the media are obsessively covering the issue of contraception.

    We can trust the media to report honestly, accurately, and fairly on this issue, as they do with other issues .

    Comment by Michael Ejercito — March 2, 2012 @ 4:01 pm - March 2, 2012

  4. Funny, it’s only 1:46 here in California, you’re posting in EST. Yes. unleaded regular gas jumped from 4.29/gal to 4.35/gal today, 3/2.

    Comment by timothy montgomery — March 2, 2012 @ 4:48 pm - March 2, 2012

  5. timothy, I post in EST, but live in PST (because the blog founder lives in EST). Will keep my camera with me today; maybe prices have gone up since I snapped the picture at about 11:50 AM PST.

    Comment by B. Daniel Blatt — March 2, 2012 @ 4:58 pm - March 2, 2012

  6. It’s 4.39 at Shell, Santa Monica & Laurel.

    Comment by TGC — March 2, 2012 @ 6:41 pm - March 2, 2012

  7. Still $4.35 @ Fairfax & Beverly as of 3 hours ago.

    http://tinyurl.com/7kt6rnz

    Comment by TGC — March 2, 2012 @ 6:44 pm - March 2, 2012

  8. Diesel goes up first. I expect another spike in gas prices soon.

    Comment by Sebastian Shaw — March 3, 2012 @ 11:26 am - March 3, 2012

  9. [...] for a gallon of regular seems mighty cheap for those of us California’s Southland. Comments [...]

    Pingback by GayPatriot » A conservative means to express frustration at higher gas prices? — March 4, 2012 @ 6:00 pm - March 4, 2012

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