Quote:
Originally Posted by Coramoor
I remember reading how a large part of the increase in the cost of gas is due to the weak dollar. A barrel of oil is still worth the same amount when set against gold as it was a few years ago.
The devalue of the dollar, due to stupid policies like bailing out homeowners that made irresponsible decisions and bought houses they couldn't afford (for example), is causing this increase.
It had some other examples...but I can't be bothered to try and find the article. Once again I'll just blame the democrats and their unsound fiscal policies driving the dollar into the ground.
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That is correct, when the dollar weakens in global markets the price of oil goes up because oil is traded in strictly American dollars. Thats not the only reason oil prices are so high though. OPEC says they are producing enough oil to meet global demand, and they won't increase it because they are basically punished America. A while back, when oil was about $20/barrel, OPEC and the US were working on a deal to increase middle eastern oil production which would have meant billions of more dollars for OPEC, well before the deal was done, far eastern countries struck oil and the US went there to get the rest of the oil needs and oil plummeted to $10/barrel. So OPEC wasn't happy about that and now they're hammering us for it.