BoaterTalk: LiquidLounge: Oil has gone up in relation to the dollar by 500% in about 5 years...

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Oil has gone up in relation to the dollar by 500% in about 5 years... New

Forum: LiquidLounge
Re:

More gasoline price news... rlhartman New
Date: May 16 2008, 5:15 GMT
From: Chrisj

...and it's not because we're not producing enough- it's due in large part to our OPEC friends not recycling their petro-dollars back into US treasury bonds, which is one thing that's propped up the dollar since the early '80s, and in large part because they're selling larger portions of their product to other customers like China and India.

The combination of debt, inflation, and the rise of other economies has given global investors a better place to put their cash than in dollars. The result: a weakened dollar makes oil dramatically more expensive for us in a very short period of time.

Makes headlines like this one more interesting. "Wind Would Power 20% of America for Cost of Four Months in Iraq".

I found this lecture to be quite interesting- our local NPR station's 'speakers forum' put it on. I'm a bit more bullish than this guy- my take is that as the dollar weakens and as we understand how our friendly 'backers' are mugging the dollar, we'll take energy independence (and our dependence on debt in general) a bit more seriously.