Gas Prices Rise As U.S. Prints Money

By Reg Chapman, WCCO-TV

MINNEAPOLIS (WCCO) — A gallon of gas in the Twin Cities is running $3.49 a gallon.

Many stations hiked prices by 20 to 30 cents in just a couple of days.

Experts said you don’t have to look far to find the reason behind the surge. The turmoil rolling across the Middle East is playing a big part.

However, the price at the pump has many people wondering why gas isn’t the only thing going up.

Food prices are on the rise. Airlines have increased fares from $5 to $20 per roundtrip ticket in an effort to offset the cost of higher fuel.

Economist David Vang said there are two reasons why Americans are paying more at the pump, to fly and to eat.

He said the government’s policy for the past couple of years to get us out of recession has been to drastically increase the money supply.

“The United States has increased the printing of dollars and a lot of these major commodities like oil are priced in dollars on the world market, so if the dollar falls because we print it a lot, the price of those commodities go up,” Vang said.

Vang said that the rapid growth of China and India’s economies also plays a part in how much we pay for things.

“China’s economy is still growing and so is India, and so they are buying up lots and lots of commodities for their own construction needs and population needs and so forth, so that further the prices of food items fuel and travel of course requires a lot of fuel,” Vang said.

More from Reg Chapman
  • scott

    This just in……..exxon mobile just posted record earnings for 2010. 59328285 triillion in december alone. Hmmmm. That is the real reason!

    • Greg

      It’s like either party really cares about people.

      • Gas SHOULD BE MORE

        I love when gas prices spike! I am a terrible converstionalist, and it provides me with something of an ice breaker, to help initiate meaningless smalltalk. I sincerely hope that gas rises to 8$/gallon, I am a millionaire so it doesn’t matter to me one way or another. It sure is fun though to watch all the little people scrambling and crying when gas spikes, it puts the FUN in FUNANCIAL STRAIN!!

    • Kim

      EXACTLY!! How can people be so blind to the reality of this situaion?! or not get mad enough to stand up and do something……

  • ride a bike

    59328285 triillion is 59.328285 quintillion. Is there even that much money in the entire world???

  • Kim

    But we can spill billions and billions of gallons of oil in the ocean and our prices don’t go up one cent………hmmmmm…sounds a little fishy to me.

  • Victim Du Jour

    What’s wrong with making a profit? No one is forcing you to use oil and gas.

    • Kim

      That’s not the point Victim Du Jour, the point is, they are making a profit by telling us that the prices are rising for such a situation. A lie to the American public – and if you’re okay with that, then there is something wrong with your morals and values as a human being. Making a profit off of lies is NOT okay.

    • Mike

      Nothing is wrong with profit, until it stops commerce, the prerequisite to captalism!
      Are you really that dim?

    • JoeSnow

      It`s ignorant simpletons like you that are the problem. Every dog has it`s day & I`m hearing howling.

    • daniel1956

      Actually, yes, you are forced to use fuel to survive in MN. Even our clothing takes fuel to make. Not heating your home? The county will take your kids away. Can’t use wood; that’s strickly regulated now. Can’t walk to anyplace you need to get to. Anywhere you need to get to requires a vehicle to get to, due to sprawl. The list in endless, to those that pay attention.

    • Irv

      The more I pay for gas the more goes to Exxon and the less I can spend locally on groceries, products and services that run our state. $4 per gallon gas was part of the reason for the market collapse in 08. Didn’t notice Exxon laying off during the recession. Saw everyone elso go under though. So whats wrong? Its the taking from the little guy to make Koch one more billion, casue the first 10 weren’t enough. Thats whats wrong.

    • Wesly

      Nothing is wrong with making a profit in a competitive market. Fuel does not fall into that category. While the price per barrel used to reflect demand, it does not now. Using your logic, the drug companies should be getting $10,000 a dose for their patented medication. After all, what is wrong with profit.

    • insignificant

      lol…yeah we are forced ,dude…you try riding yer horse around the freeway system and see how far ya get,eh?

  • Gary

    The USA is in for a world of hurt when the dollar gets dropped as the way these major commodities get priced.

    • insignificant

      you mean the dollar gets dropped as the worlds reserve currency,eh?…then TSHF…so much for the recovery….fun while it lasted

  • eddy b

    The problem is Wall Street and our worthless government

    • Mike

      Now is your opportunity to make your government work Eddy B, why don’t you run for political office. The Tea Bagger party could use your vast intellect and political “savy”………..

    • Tony

      I agree with you. Can’t wait to vote out the government allowing this!

      • KM

        Yeah, the Democratic President and his minions who are printing all this money!

      • william

        The government that allows record profits like the republicans, or the ones who can’t figure out how to redistribute oil profits the democrats?

    • Kim

      eddy b, our government is not worthless, it’s completely CORRUPT. The only way to run for office and WIN is if your a millionaire and sell your soul to the devil. Why do you think Jesse Ventura stepped down? He flat out said, it’s corrupt and he doesn’t want to play the game.

  • mrenviroment

    High fuel prices keep people from being able to spend for groceries, vacations and other personal items.

  • earl main

    I think gas prices should only be $1.00 becuae the goverment makes a $90000000000000,00000000 a week on gas and thats high five robbery

  • Tom

    I say we just go over to all those countrys and take the oil the hell with them what can they do , throw rocks at us ha ha

  • Henry Olson

    take oil of the stock exchange or make the speculators take delivery of what they buy it would bring prices down in a hurry

  • BMW

    I know there is a lot of negativity about the thus far failed ethanol program, although I think that ethanol should still be considered. For ethanol to succeed, a) it needs to be deregulated and taken out of control of big government and the oil companies who are dictating the production and prices; and b) resources other than corn can be used to produce it. For instance, legalize Hemp (not to be confused with the potent forms of marijuana that people smoke) for ethanol production….

    Also, with all of the modern day technology, develop safer ways to drill for oil which would virtually eliminate risks of an environmental disaster, The USA is said to be sitting on some of the richest oil fields in the World but we are not allowed to drill for it. I am not saying drill baby drill, although we can develop ways to harvest said oil with minimal risk to the environment. North Dakota is a case in point… there may not be enough oil in North Dakota to satisfy the whole nation, although there is oil there, and they are drilling for it.

    • TomK

      Ethanol is not over-regulated, it is heavily subsidized by our government and without subsidies, Ethanol is a flop.
      Oil companies do not set the price of oil, the consumer does. It is simple supply and demand. If you think that the cost of oil is too high then just stop using it.

      • BMW

        True ethanol is heavily subsidized in the USA, although from what I understand, the USA oil companies have dictated the prices and production of ethanol in our country in such a way that it will not compete or dig into oil company profits and sales of regular gasoline. Is not the ethanol program doing fine in Brazil?

      • TomK

        The oil companies cannot set the price because the oil or ethanol. It is a traded commodity with the prices set by the buyers. Remember a few years ago when gasoline was over $4/barrel, the administration blamed speculators (the buyers) for the increase. Oil companies cannot set the price of their commodity any more than a miner can set the price of the theirs. Brazil uses sugar cane to create ethanol which is far more energy efficient to convert than corn. Brazil has been switching over to gasoline and diesel for it’s transportation anyway….TomK

      • Ralph

        Hey Tom Have you ever heard of OPEC and the meetings they have? By controlling production amongst themselves they limit supply to keep the price higher.

      • insignificant

        Ethenol is expensive to make and cuts into food cropage,eh?…how ya gonna feed all this people if’n ya burn it in yer fuel tank?

  • Edwina Ann Walior

    The oil conglomerates stink and we have to suffer because of it., in higher prices. Wonder what the CEO’s bonuses are. Makes you want to puke!!!!!!!!!!!!!!. And do you think OBAMA will do anything about it. THink again.

  • dan l

    you guys might wanna work on your math, but dont worry the world will never make as much gas as it already has.

  • Dave

    In dollars, yes it is huge. What is their ROI, return on investment. The oil companies were in the middle for ROI, for the Fortune 500 companies. Are they still there? That is the questions we need to ask. 5% is a lot more for an invest ment of 1 billion then it is for 1 million, just as an example.

  • Kevin

    So we send all of our decent paying manufacturing to china or outsourcing to India and their economies do so well that it hurts our economy!? Didn’t the politicians and rich 1% tell us all of this restructuring of our jobs was going to help us and create lots of work for us? The govt and corporate greed has been lying and now the results are in. The deception by the corporate controlled govt continues to send this country spiraling down and yet we hear politician after politician saying it’s are fault for unfair taxation.

    • Wesly

      And yet there are tons of working people who support the politicians who helped send jobs overseas.

  • Elmo

    Lets say Bye Bye Obama. Your only a president 1 term. We need somebody that knows Economics and how it takes work to get pay. Not just government hand outs or campaign contributions.

  • FED UP


  • BMW

    Most stations are pay at the pump or cashier before you can fuel up. If you can fuel before paying, and try fuel and ditch without paying, they will probably have security cameras to catch your license plate and a picture of you and your car, so you are risking being busted.

  • Richard

    Obama said before he was elected that energy prices would “necessarily have to sky rocket” for his green energy plans to work. Why the surprise?

    • Ralph

      Yes when oil gets high enough ethanol becomes a reasonable additive. The cost of building solar and wind sources then also become viable. The cost of batteries for electric cars become more viable when fuel is less. Obama is not the moron on this. It is pretty simple.

    • reagan

      Obama is a moron Richard

    • Kim

      Obama also said that he would abolish the Patriot Act but reauthorized it, he said he’d pull our troops out of the East once he was put into office but since has tripled our troops, the only thing that I have found any truth to what Obama has ever said is that he will bring CHANGE, and darn it, he sure has……and it wasn’t good change. So, are the energy prices rising because of his “green energy” scam, or are they rising to never fall again, causing the dollar to collapse, and bringing on a one world currency? Let’s wait until it’s too late to do anything about it….as we Americans have proven are very good at.

    • insignificant

      “green energy”…lol…the technologies just aren;’t there,eh?…what we do havein this country is alot o coal,and cleaner burning technologies,but Big Bro is throwin’ wrenches into that recourse,too,before we have something else,and down south when the cold weather hit ,electrical grids couldn’t cope with the demand

  • Krissi

    I so hope you get caught. Genius.

  • Richard

    Flunk basic economics anyone. as long as the new dollars DO NOT leave the country there is no difference. In short more BS!!! Banks distribute new money. to get this “new money” you give up your electronic money in other accts. Zero change.

  • Billy

    You have to be a crook to make it now days.

    When I go to cub food or rainbow foods to grocery shop I always put a few items in the lower basket so the cashier won’t see them at checkout.

    • insignificant

      yeah…sure ya do@Billy…good luck with that

  • Billy

    I remember when gas was $2.00 a gallon, I thought that was high.

    How high is to high before us stupid ignorant Americans do something about it.

  • Hang Billy the skid

    Why don’t the police track this moron Billy through his e-mail address he puts in every time he leaves one of his moronic comments on Wcco and he leaves allot. What wrong didn’t momma give you enough attention growing up?

    • insignificant

      his e-mail address is private,eh?…we don’t need no police tracking our ISP’s,eh?

  • Hang Billy the skid

    Sorry for the comment above, my alcoholism gets the better of me sometimes.

blog comments powered by Disqus
Thursday Night Football

Listen Live