NOYB wrote:
Supply isn't as much of an issue when it greatly exceeds demand. Remember
that in my hypothetical scenario, there are no other countries or other
countries driving demand.




Or are you daydreaming about a world where George Bush Jr (on the advice
of Pat Roberson) has nuked the rest of the world into the Stone Age, thus
leaving all the oil for us?


No. But you need to remove the demand from other countries from the
argument in order to see what effect a falling value of the dollar would
have.

Oh, I see. So, your statements are supposing that there should be no
other country in the world buying oil except the US, then we could
dictate price?

A nice daydream. Let us know when you're ready to wake up.



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...


I didn't call it "deflation". I called it a deflated currency. There's a
big difference.


Oh, you finally caught this error? Go back to sleep, Nobby.


No. The yuan is pegged to the dollar.

Oil is priced in US dollars. If the dollar falls in value relative to other
currencies, the price of oil doesn't change

Wrong. If the dollar falssin value relative to other currencies, then
all goods purchased from other countries... including oil... will
require more dollars to buy.



All things being equal, the value of the dollar in and of itself has no
effect on the price of oil...

Now there, I agree.

The only catch is when you actually try to *buy* oil with those dollars,
then the sellers perception of the dollars value becomes important.



I'd suggest some basic (very very basic) econ texts.


For you maybe.


No thanks, I prefer to live in the real world, where daydream economics
don't really work.

DSK