April 25, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement blaming the Obama Administration and the Federal Reserve for weakening the dollar and increasing oil and other commodity prices:
“The Obama Administration once again wants to blame so-called ‘speculators’ for the commodities inflation caused by its own weak dollar policies. Oil is soaring because of the weak dollar — it’s the only explanation that makes any sense. There is no oil supply problem, and demand is only slightly increased from a year ago.
“Yet, prices are soaring. U.S. crude alone has more than tripled from a low of about $35 a barrel in 2009 to over $110 a barrel today, and today gasoline prices are soaring quickly to $4 a gallon, and soon $5. The reason is the weak dollar.
“Since the last commodities bubble in 2008, the Federal Reserve has increased its balance sheet by $1.78 trillion to $2.73 trillion, a whopping 188 percent increase. Prices for food, gold, oil, and other commodities have all behaved accordingly. Price increases in a broad range of commodities indicate a clear inflationary problem, caused by the expansive monetary policies of the Federal Reserve.
“If there should be any investigation, it should be into the Obama Administration’s weak dollar policies that are destroying the purchasing power of average American families, who now have to pay even more for staples like food and energy.”
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