Gold reached today a record $1607.90 an ounce. However, the $873 an ounce reached in 1980 will sell today at $2,391.45 an ounce after adjusting for inflation.
A single dollar in 1980 is today $2.74, after adjusting for inflation.
The Congressional Budget Office estimates that the Federal Government ran a $45 billion deficit for the month of June. This brings to $973 billion the total deficit for the first nine months of Fiscal Year 2011, which amounts to a monthly average of $108.11 billion.
By comparison, the top five oil companies combined – Exxon, Chevron, Conoco Phillips, BP and Shell – had a total profit of $77.4 billion for all of 2010 from between all their wordlwide operations. Furthermore, the total $952 billion in profits raked in between these five firms from 2001 all through 2010 from their global and American operations would not cover the current FY2011 deficit which is already $973 billion, and has three more months to swell.
The spike in oil prices from a low of $89 a barrel just fourteen days ago to the $99.47 a barrel reached this week has gotten people worried again about rising prices at the pump. The “good news” however is that as of today July 8, Oil prices are not near to the $135 level Goldman Sachs estimated in late May that Oil will reach by mid July.
And no, Goldman was not speaking about the Brent contract in London which runs ahead of the Light Sweet Crude contract in New York. If they were referring to Brent, Goldman would not estimate in the same report that the Average Gas Price in New York will hit $5 a Gallon by mid-July – a thing that would not happen even if Brent were at $140 a barrel. (Brent is now at $118, and Gas at the pump is well below the $4 average).