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To: thackney
1) Oil is priced in Dollars.

2) The Dollar is still losing value

3) Therefore, the cost of oil in Dollars goes up, even if the value of oil remains constant.

Whew, that was hard.

2 posted on 11/07/2007 10:23:19 AM PST by Yo-Yo (USAF, TAC, 12th AF, 366 TFW, 366 MG, 366 CRS, Mtn Home AFB, 1978-81)
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To: Yo-Yo

Is oil only climbing as fast as the dollar value is sinking? Or has it climbed faster and the dollar value is compounding the problem?


4 posted on 11/07/2007 10:24:37 AM PST by thackney (life is fragile, handle with prayer)
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To: Yo-Yo

“Why Are Oil Prices So High?”

2 reasons:

1) George Bush
2) Haliburton

I thought everyone knew that.....geesh!


7 posted on 11/07/2007 10:25:58 AM PST by scottdeus12 (Jesus is real, whether you believe in Him or not.)
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To: Yo-Yo

LOL...thanks, Yo-Yo...

Depend on an Air Force guy to boil it down for us economic philistines...:)


24 posted on 11/07/2007 10:45:43 AM PST by rlmorel (Liberals: If the Truth would help them, they would use it.)
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To: Yo-Yo

>>1) Oil is priced in Dollars.
2) The Dollar is still losing value

3) Therefore, the cost of oil in Dollars goes up, even if the value of oil remains constant.<<

Yup. That’s my take as well. It is simple inlfation at work. I suspect that is also part of the reason for the current stock prices.

The only non-catastrophic way out of the housing/credit bubble is to monetize the whole thing through inflation. It is apparently happening as we speak.


32 posted on 11/07/2007 10:53:57 AM PST by RobRoy (Islam is a greater threat to the world today than Nazism was in 1938.)
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