On 24 Aug 2005 14:51:14 -0700, wrote:


P. Fritz wrote:
"NOYB" wrote in message
nk.net...

wrote in message
ups.com...
While fuel prices are in the news a lot these days, we might do well to
realize that the value of crude oil hasn't really gone up as much as we
think- much of the price pain is because the US dollar has gone down.

Oil is an international commodity, and the producers can sell it almost
anywhere in the world. The US dollar is getting clobbered on foreign
exchanges all around the planet. It took $1.60 Canadian to buy a US
dollar about a year ago, and it now takes only about $1.20. It's the
same with almost all other currencies vs. the dollar. If we're going to
buy an internationally marketable resource and pay for it with a
declining currency, why should we be surprised if it takes more of
those depreciating dollars to buy the same bbl of oil?

Hogwash. Denmark, the Netherlands, and several other countries pay more
than $6/gallon for gas. Countries like Iraq pay less than 20 cents. The
value of the US dollar has nothing to do with either of those situations.


It is simple economics.....but it is not the value of the dollar against
foreign currency........It is supply and demand. Right now, demand is
nearly equal to supply, THAT is why the cost has increase so dramatically


Because supply can barely keep up with demand, the seller will ask for
a greater number of dollars (a variable) against a bbl of oil (a
constant) when the dollar is weak.

Our irresponsible federal spending spree is destroying the dollar and
contributing to the increase in the number of dollars demanded for a
bbl of oil. I know that's an uncomfortable fact for some people (who
insist the R govt can do no wrong) to accept, but it cannot be ignored.

By the way, it looks like we're going to be $8 TRILLION in the hole by
late September. Wasn't this bout $5.5 Trillion when Bush took office?
Heck, even Bush ought to be able to comprehend VETO, it's only a
four-letter word. :-)
One of you guys in his "approved audience" ought to send him an email
and explain that he can exert some control over congressional
spendthrifts, if only he will choose to do so.

http://www.brillig.com/debt_clock/

All I can say is thank heaven we have the party that pledged to bring
us fiscal accountability and reduce government spending in power. Can
you imagine where we'd be if those fiscally irresponsible D's were at
the helm?

Quadrillion?

--
John H.
On the 'PocoLoco' out of Deale, MD