Comment 63628

By A Smith (anonymous) | Posted May 17, 2011 at 21:55:08

>> in an age when the demand for gas is clearly beginning to outstrip the supply, is to use less of it.

Gas/oil prices aren't high because we're running out of oil/gas, it's because we're printing too much money.

Look at home prices, since 1999 the average home price in Canada has gone from $150k to $375k, a jump of 150%...

Current gas prices are around $1.32/litre. In 1999, they were 50 cents a litre. That's a jump of 164%.

Is Canada running out of land to build homes? No. Yet the price of homes has increased at a rate 7.9% a year. In contrast, from 1989 to 1999, the average home price remained flat at $150k. Curiously enough, in that time period, the price of gold remained around $450 Canadian dollars.

If the Bank of Canada did nothing but return the value of Canadian dollar/gold ratio to 1999 levels, which was around $450/ounce, compared to the current $1,442/ounce, gas prices would fall from the current $1.32 a litre to 41.2 cents a litre.

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