Fed helps fuel high gas prices

Under the forces of supply and demand, gasoline prices should be falling, giving a break to households and placing a cushion under the falling U.S. economy.

Under the forces of 2008, the nation has more gasoline in the tank than at any time since early 2002 – yet gas is $3.15 a gallon with no peak in sight.


Blame speculators, a falling dollar, the federal deficit and continued, breakneck growth by China and India. Spare a thought for Federal Reserve chief Ben S. Bernanke while you’re at it. His main tools to forestall a recession are adding to the problem. Energy inflation is twice as bad in the United States as in Europe, thanks to the wimpy greenback. Since the beginning of 2006 oil is up 60 percent in dollars but only 30 percent in euros.

Baltimore Sun