Gold, dollars, and oil

Journal Article · Mon Oct 29 04:00:00 EST 1979 · Forbes; (United States)

OSTI ID:5685974

In the U.S., inflation was 3.4% in 1972; 9.0% in 1978; and is 13% in 1979. Debate rages over the trade deficit, but U.S. exports have gone up 3-1/2 times since 1972, even after adjusting for inflation. The real problem is explained this way: in 1972 the U.S. was importing 2.3 million barrels of oil a day; currently it is importing 7.8 million barrels daily. The U.S. oil import bill was only $4.4 billion in 1972; it was $40 billion last year; and this year it will be about $55 billion. The demand for oil does not go down when the price goes up. Disgusted with the shrinking dollar, the Arabs reportedly are shifting to gold. But using gold as money will do no more than buy a little time. Federal Reserve Chairman, Paul Volcker, announced some tough economic measures to slow inflation in the U.S., but to no avail. Nuclear power development has been hampered by protesters, some Americans do not believe there is an oil shortage, coal has been neglected. The tide of imported oil must be broken, and which presidential candidate will have the courage to sponsor high gasoline prices remains to be seen. (MCW)

• OSTI ID: 5685974
• Journal Information: Forbes; (United States), Journal Name: Forbes; (United States) Vol. 124:9; ISSN FORBA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
DEMAND FACTORS
ECONOMIC POLICY
ECONOMICS
ELEMENTS
ENERGY SOURCES
EXPORTS
FOSSIL FUELS
FUELS
GOLD
GOVERNMENT POLICIES
IMPORTS
INFLATION
INTERNATIONAL ORGANIZATIONS
METALS
NORTH AMERICA
OIL-EXPORTING COUNTRIES
OPEC
PETROLEUM
PRICES
TRANSITION ELEMENTS
USA