In the chart is the M2 adjusted price of gasoline matched to the current price. It measures the portion of total dollars it would take to purchase a gallon of gasoline. Essentially it's a chart of dollar strength in gasoline terms.
Chart up = strong gas, weak dollar.
Chart down = weak gas, strong dollar.
The white trendline in the center is the longterm linear regression, the center of the logarithmic price distribution (but only back to 1986).
To calculate this symbol yourself:
RB1! price = 3.798
RB1! / WM2NS price = 0.0001758
3.798 / 0.0001758 = 21604
Now we simply enter RB1! /WM2NS*21604 to get our current price.
What the chart does not show is that over the years, public ownership of the dollar supply has gone down. As you pump unwarranted dollars into the economy, you get diminishing returns on real gdp growth and thus a reduction in productivity. No measurements are being made, dollars are only being thrown into the system. More doing, less thinking and measuring. Therefore, people have less overall dollars, relative to the total supply of dollars, to spend on gasoline as they did in previous decades. For example, around the 1970s, the FED could squeeze out about 70 cents in GDP per 1 dollar printed. (Actually they didn't squeeze anything, they just sat on their ass) Fast forward to 2022, these reckless and dogmatic pseudo-scientists are getting around 30 cents per dollar printed. If people are economically half as productive overall, PERHAPS everyday people will only be able to afford about HALF as much stuff and therefore half as much gasoline as when it was just as expensive in the past. Just something to think about, seeing as how regular citizens didn't get much of that money. Those who work the hardest are not worthy of the easy money printed by our glorious church of the FED.
Consider how gasoline peaked around 7$ multiple times, in '85, '90, '05, '06. Now imagine if society was half as productive back then, that's basically saying it's 14$ in today's terms if you account for money productivity AND money supply expansion.
Probably not the most settling idea.
Good luck and hedge your bets.
Chart up = strong gas, weak dollar.
Chart down = weak gas, strong dollar.
The white trendline in the center is the longterm linear regression, the center of the logarithmic price distribution (but only back to 1986).
To calculate this symbol yourself:
RB1! price = 3.798
RB1! / WM2NS price = 0.0001758
3.798 / 0.0001758 = 21604
Now we simply enter RB1! /WM2NS*21604 to get our current price.
What the chart does not show is that over the years, public ownership of the dollar supply has gone down. As you pump unwarranted dollars into the economy, you get diminishing returns on real gdp growth and thus a reduction in productivity. No measurements are being made, dollars are only being thrown into the system. More doing, less thinking and measuring. Therefore, people have less overall dollars, relative to the total supply of dollars, to spend on gasoline as they did in previous decades. For example, around the 1970s, the FED could squeeze out about 70 cents in GDP per 1 dollar printed. (Actually they didn't squeeze anything, they just sat on their ass) Fast forward to 2022, these reckless and dogmatic pseudo-scientists are getting around 30 cents per dollar printed. If people are economically half as productive overall, PERHAPS everyday people will only be able to afford about HALF as much stuff and therefore half as much gasoline as when it was just as expensive in the past. Just something to think about, seeing as how regular citizens didn't get much of that money. Those who work the hardest are not worthy of the easy money printed by our glorious church of the FED.
Consider how gasoline peaked around 7$ multiple times, in '85, '90, '05, '06. Now imagine if society was half as productive back then, that's basically saying it's 14$ in today's terms if you account for money productivity AND money supply expansion.
Probably not the most settling idea.
Good luck and hedge your bets.