On Tue, 11 Mar 2008 09:28:31 -0400, "Eisboch" wrote:

What does Bush (or any president) have to do with the price of oil or the
value of the dollar?

(Not argumentative, but I am really interested in learning how the POTUS
controls and is responsible for such things)

One major factor is the invasion of Iraq which was directly under
presidential control. It has taken large amounts of Iraqi petro
supply off line, contributed to the defecit spending issue, and
increased the trade imbalance.

Another factor is domestic fiscal policy which kept interest rates too
low for too long after the "dot com" bust. Higher interest rates
attract offshore funds which help to sustain a stronger dollar. Lower
interest rates do the opposite which is why the Fed is now caught
between a rock and a hard place. If they lower interest rates to
stimulate the economy and bail out the credit markets, the dollar will
continue to depreciate which creates inflationary pressures such as
higher oil costs.

The basic issue with oil however is supply and demand. Second and
third world countries have dramatically increased consumption as they
become increasingly developed, and there is only so much oil to go
around.