It's those damned speculators. It's also a bubble, and it will pop. However, as the US inflates its currency into oblivion, prices will still go up. As the US dollar becomes less desirable to have, it will cost more of them to buy gas, etc...
There is a possibility that you will see the price of a gallon of gas go to $30 a gallon. But, by then, a loaf of bread will be $15-18.
Interestingly enough, one can still take a canadian silver quarter, sell it to a bullion dealer, and within a few cents, have money for an imperial gallon of gas today. In 1967 when we were still minting .800 silver quarters, an imperial gallon of gas cost a quarter or 0.125 tr oz of silver.
It's not that gas is getting more expensive, it's that the fiat paper US dollar is becoming worth so much less as it is being inflated to it's natural value, which is 0.
Today, the US dollar is worth about 2.72 cents of what it was worth in 1970.
It's my opinion that the US is trying to inflate the dollar to nothing and replace the currency with a new one to get out of debt. when that happens, and you take your 'secure' US gov bonds to be cashed, you will hear something along the line of, "I'm sorry, Sir, but we don't have any of these US dollars you speak of, and we cannot pay you...."
Now, if you're up to your eyeballs in debt, you might want to buy a small US bond, and tape the gov or whoever's reaction to the bond to be used in court should they take you there for nonperformance on your loan. Could be entertainment at it's finest....
