Gas prices are not really higher-

A quick google search for “gas prices in 2004″  yielded  a CNN  article where  gas prices hit a record high of 1.75  per gallon nationwide in March 2004.   Today, I paid $4.  Are gas prices really higher or has our dollar just been devalued?

A similar search shows that gold price was $400 per ounce  during the same period.  Today, gold closed at $908/oz after recently reaching a high of $1000/oz a few months ago. In essence, the price of gold is a reflection of the stength of the dollar. When the dollar becomes weaker, the price of gold and other precious metals increase. 

Actually, you can buy almost the same amount of gas today with 1 oz of gold [$908 (1 oz. of gold) / $4 per gallon = 227 gallons of gas]  as you could 4 years ago [$400 (1 oz. of gold) /$1.75 per gallon = 228 gallons].  In otherwords, 1 oz. of gold in 2004 and 2008 would have bought you the same amount of gas. 

So I guess you can say the price of gas has not really increased. Basically, the value of the dollar has diminished by over 50%.  Also, I highly recommend you watch the Lindsey Williams video on who controls oil and where its headed. It is not what you think.

**Please note that I am not a economist.