NOYB wrote:
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.


"The value of the US dollar has no bearing on how many US dollars
Americans must pay for imported oil"? Did you really just advance such
a theory, NOYB?

Why would you do that? Could it be because the runaway federal spending
by the R majority congress and approved by the R president is one of
the primary factors causing our dollar to take a beating?

Please explain why the relative value of a nation's currency has no
effect on the pricing of imported commoditites (such as gourmet Iraqi
hogwash).