"DSK" wrote in message
news
NOYB wrote:
It's deflated in value relative to other currencies.

Really? Who'd a thunk it?

... But not relative to how much oil a dollar will buy...

Bzzt, try again

... at least until the other "inflated" currencies have driven the price
of oil up.

The other currencies are irrelevant to whether or not the dollar is
deflated, unless you're sepcificaly talking about the exchange rate.


The value of the dollar is a direct function of exchange rates. If the US
dollar was the only currency in the world, then the value of the dollar
couldn't fall...because there would be no other currency to measure it
against.




If demand from other countries didn't increase while the dollar's value
fell, then the price of oil would actually fall.


???

Better think this one over again too.

No need to. If nobody else needed oil besides the US, then we would drive
demand...and consequently, we would drive the price.


If the dollars value falls (and BTW this is not deflation) then it will
take more of them to buy whatever... oil, bread, ammo, other currency...


Not if bread, ammo, and other currency is pegged to the dollar...like oil.

Oh wait! China's currency (yuan) *is* pegged to the dollar. And it costs
no more additional US dollars to purchase a yuan today even with the fall of
the value of the dollar. Imagine that! Thank you for proving my point.

The basic relationships of monetarism are simple, when you get them wrong
you show that you're poorly educated on the subject. Probably parroting
some right-wing talk radio nonsense.

I don't listen to talk radio.