(If) weaker dollar means higher oil price, and
EU and others have made a sport of assailing the US dollar, then
do they want higher oil prices or some phony prestige they know they cannot back up ?
(Venezuela not included in any rational thinking exercise)
The truth behind the curtain...is that the US is finally selling American-made cars in Europe right now. We are selling alot of different American-made products because its so cheap to buy dollars. We’ve made European products so expensive...that US-made products can now readily compete within the US. If you were German...you’d be upset with this game. Plus you have Europeans coming to the US on vacations at the highest rate in years...because of the cheap dollar.
The oil mafia hates this because they only get paid in dollars for oil. So the European countries really are enjoying “cheap” gas at this point in time...one of the few luxury things from this whole game. So Saudi Arabia and the rest of the oil mafia are holding lots of dollars...which aren’t very usable unless...you intend to spend them in the US. Trying to spend them in Europe...buying the Euro...is a joke...you lose. So the US has forced the oil mafia into a funnel which leads primarily back to the US...to spend. US companies benefit again.
The only US citizens hurt in this game...are the international speculation players on the market, and the US citizens who live and work overseas (contractors for DOD for example). But these folks are small in numbers...so this scheme is helping the US in the long run.
Is there a point where the oil mafia says dump the dollar and go to the Euro? Yes...which we probably aren’t that far from. This was intentional at the conference to let the US know they are thinking about this. The US...I’m guessing....doesn’t care. They’d like to play this game a bit in this direction.
As quickly as they dump dollars...it will drive the dollar down even more...making it even more attractive to buy US products. As for the price of buy oil...it will skyrocket for us in the states...no doubt...but I think Bush is waiting for that moment to really busy alternate fuels and get us off the oil mafia. It may not be a public policy...but it appears to the direction of the country. So prepare for $5 a gallon for gas...and get set to get into the alternate fuels market. The good news? The Saudis will not be in our backyard anymore.