While true, but it would still be bad. the dollar's fall can account for only a 20% increase in the price of oil.
If we had a stronger dollar, the price of oil wouldn't be quite as bad. A week dollar didn't help matters back in 2008.
Dollar vs Euro
Posted on 04/02/2011 11:39:18 AM PDT by DannyTN
While true, but it would still be bad. the dollar's fall can account for only a 20% increase in the price of oil.
If we had a stronger dollar, the price of oil wouldn't be quite as bad. A week dollar didn't help matters back in 2008.
Dollar vs Euro
“The inflation we are seeing is oil related.”
Nonsense.
The inflation we are seeing in the supermarket is not oil related. It’s global demand on all commodities, fed in part by the Fed’s pump priming and money printing, and continued massive U.S. borrowing.
U.S. consumption continues to extend so far above production that only cheap money and leverage sustains it, and with that cheap money and massive borrowing, U.S. thirst for imported consumables inflates world production, which inflates world commodities demand. That’s cheap fiat money at work, not oil. Oil prices are just another symptom of it, not a prime cause.
Feel the economy at about the end of the first quarter, next year, and see what it’s like then.
Of course there are other factors, such as world wide demand for oil. The Chinese are adding 10 million cars a year. In a few years, they are likely to surpass US auto sales..
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