This morning, everything is inflating higher after the ECB President Mario Draghi announced his bond buying program. The stock markets seem to be rejoicing over the program by the European Central Bank. While asset prices climb so is gasoline and oil. Today, the United States Gasoline Fund (NYSEARCA:UGA) is trading higher by $1.28 to 60.92 a share. This is a new three year high for the UGA and consumers will certainly feel it at the gas pump. One of the major problems with artificial inflation created by the central banks is that the goods that people need to survive such as food and energy will increase. The average price for a gallon of regular unleaded gasoline in the United States is $3.82. That price could head higher should gasoline and oil continue to rise.
Oil ETF’s such as United States Oil Fund LP (ETF) (NYSEARCA:USO), and the iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL) are also trading higher today despite a rise in the U.S. Dollar Index. This tells us that investors are betting and expecting much more inflation in the near term. Usually, when the U.S. Dollar Index trades higher most commodities such as oil, gold, and silver will deflate and trade lower. That is not happening today as the SPDR Gold Trust (NYSE:GLD), and the iShares Silver Trust (ETF) (NYSEARCA:SLV) are also trading higher on the session.